The importance of the Budget that Chief Minister Dr Pramod Sawant will unveil today is threefold. For starters it is the first Budget after the economic downslide caused by the Coronavirus pandemic lockdowns and restrictions, second he has to juggle the finances in such manner as to keep the economy afloat and third this is the last Budget that he will present in the Assembly before the next State Assembly elections. This Budget, therefore, will be presented in the midst of a pandemic, at a time when certain restrictions still continue and when the spread of the coronavirus has not entirely abated. How Sawant manages this remains to be seen.
It is a practice for any government to present a people-friendly Budget in an election year, and Sawant would aim to do just that, but whether the State’s financial situation can afford to bear an additional burden of more sops, whether to the people or to the industry, is the main concern. Treading this will be akin to a tightrope walk for the Chief Minister, as he rises to present his Budget. All eyes therefore will be on him, as people hope for something to cheer.
It is interesting to note that Goa Chamber of Commerce and Industry (GCCI), in its pre-Budget presentation to the government noted that industry in Goa, already reeling under the impact of a long-drawn global economic crisis, has further suffered due to the worldwide COVID-19 pandemic lockdowns. There is hardly any need to recall here the experience of the past 12 months, but that dark shadow of the pandemic still hangs over the economy. GCCI then admits that it is depending upon the government to extend some tax incentives and improvements in infrastructure that are badly needed and cannot be neglected any longer. The current economic situation is such that the government may ill afford further concessions, but again can the economy revive unless there is intervention from the State?
Industry across the board is having difficulties. Keep aside mining that has been at a standstill for three years, the curbs on international travel have effectively chained up the Goan tourism industry. The State is not in an economic position to meet the demands of all the industries, but it can always look at other means to meet industry and people’s needs.
One area that the government has to focus on is employment creation. The Chief Minister has repeatedly announced that in the current year 10,000 government jobs will be advertised and the posts filled. The government, however, cannot be the main employment provider and it is the private sector that has to play this role. The government has to facilitate the creation of employment and it can do so by easing the setting up of industry and business where the skill set required is available in the State. Jobs in the private sector will not be created unless the government engages and helps develop the sector. And this will also boost the economy.
The Budget, however, is not just for the industry. It is also for the common man and the Chief Minister with the aim of ‘Vision for All’ will attempt to include as much of the population as possible in his Budget speech. It’s a three-pronged Budget – economic development, pandemic fallout, eye on elections – that is expected. From the common man to the industrialist, everybody, especially those who have seen their fortunes slide downhill due to the pandemic, are expecting something from the Budget. Yet, it will be difficult to please everybody, but a government that is going to the polls may take a shot at doing just that.
