There are a lot of plans for the State, an increase in the financial outlay for various departments some deservedly, more infrastructure to be constructed across the State, deadlines to complete ongoing projects including opening the Mopa airport this year, new policies that are surely required for future growth, but little said about where the money for all that what has been announced will come from. It’s a Rs 24,467 crore Budget outlay, but there are no additional taxes that have been levied on the people, which of course will come as a relief. The government, however, has to earn. It has been borrowing in the past years increasing the debt figure, so the government has now turned to working to plug the revenue leakages.
Here’s an admission from the government that there are revenue leakages in the system, and it is not an allegation made by the opposition. The Chief Minister did admit that from experience he has learnt that plugging revenue leakages will bring in money. While the intention is good, it has to be tackled in such manner that every rupee due to the government is deposited in the exchequer and then used judiciously. This is also important as 18 per cent of the revenue generated will go towards clearing the accumulated loans, a figure that indicates the enormity of the debt trap that Goa has fallen into and has to emerge from at the earliest. The State cannot add to the debt burden while paying out what it already owes.
Revenue leakage is not peculiar to Goa but an issue that plagues every government. It, however, cannot be reversed without expert professional help. If the government is really serious in plugging the leaks, then it may have to go beyond its own resources and invite professional solutions, and though it may have to pay for these, if the revenue that is generated through plugging the leaks could more than make up for the professional fees paid. It has to be a permanent solution to the problem and not a temporary measure that will keep the government happy for a short period.
Returning to the other announcements, the big question is how much of what has been announced in the Budget will actually be realised in the coming financial year. The Action Taken Report tabled in the House showed that of the 252 announcements made in the 2021-22 Budget speech, 111 have been implemented during the financial year 2021-22, which amounts to 44 per cent of the total announcements. This means that 56 per cent of what was proposed to be done has not been achieved. The Chief Minister, however, attempted to play this down by stating that the action taken report is till December 2021 and that by March 31, about 60 to 70 per cent of the announcement would be completed. Even then, it is still not a big achievement.
The surprise of the Chief Minister’s speech was of course the no new tax burden. It’s the first Budget of the term and usually that is when any government takes the tough decisions, as it has five years before it goes back to the people. The soft Budget usually comes at the end of the term, and last year too there were no new taxes imposed. This then becomes the second consecutive year when Goans have been let off without any new or higher imposts. If the government is able to reverse the leakages, earn more revenue from other areas it will indeed have achieved much and also set an example of how it can be done. It therefore depends entirely on what the new administration achieves in the net financial year.
