The written reply by Chief Minister Pramod Sawant in the Assembly on Tuesday that the State sold Security Bonds worth Rs 7,320 cr since 2015 speaks volumes about the State’s financial condition. The figures indicate that the State is borrowing nearly Rs 1,500 cr every year.
While the new Chief Minister is carrying on with the same Budgetary allocations made by late Chief Minister Manohar Parrikar, he needs to do more to bring the State’s finances under control. Sawant thus far has failed to introduce any revenue generating measures. Remember Parrikar had not presented a full budget for the second consecutive year due to his medical condition and hence had not introduced any new taxes or schemes. Parrikar’s revenue surplus budget showed a total gross budgetary expenditure (including that on power purchase) of Rs 19,548.59 cr as against Rs 17,123.28 cr for the year 2018-19 representing an increase of 14.16 per cent over last year. The total revenue expenditure on the Revenue Account was shown to be Rs 13,308.26 cr while the expenditure on Capital Account is Rs 4987.45 cr.
During the year, the public debt receipts were estimated at Rs 2,432.88 cr resulting in a fiscal deficit of Rs 1,418.65 cr (nominal – 1.67 p.c). The primary deficit was estimated at Rs 2,930.97 cr. While the figures may make little sense to the common man, the figures of debt servicing, installments or interests for loans, which is Rs 2,722 cr annually will shock one and all.
It is said that the Supreme Court bringing a grinding halt to the mining after quashing the second renewals of 88 mining leases, has hit the economy badly. Another factor is that the State has not been able to catch up with the GST collections and seeks the Centre’s help to compensate for the deficit. However, with the start of new financial year, officials felt that the money will start flowing with renewal of excise, casino licences etc. But four months have passed and the financial condition remains critical. Government bonds are being sold almost every month.
What is shocking even more is that the government says it is pro-development, but at what cost? Every individual in Goa has a debt of over Rs 1 lakh if the debt figure of Rs 15,000 cr is to be considered. Should development be carried out in the present financial condition? This is a million dollar question the government and the people have to answer before it is too late. Also, it’s true the Centre has given us about Rs 20,000 worth of projects but what is the use when we are finding it hard to run the government? Instead, the Centre should give Goa a financial package of at least Rs 3,000 cr for next five years.
The loans in total are around Rs 15,000 cr and if this amount is given it would suffice as most of our budget is going into debt servicing. Considering the budget outlay of over Rs 19,000 cr the State is paying 13 per cent, nearly Rs 2,722 cr just for servicing the debt. As per government documents the State’s financial dependence is 24 per cent on loans and borrowings. As per the budget document, power is one sector, which has caused losses to the State. While the receipts from power amount to Rs 587 cr, the disbursement to the power sector is a whopping Rs 2,405 cr. Another factor is the salaries, wages, pension and gratuity, which eats into 21 per cent of the budget.
Despite this, the State continues with the doles of DSS schemes for the Senior Citizens, Griha Aadhar and many such flagship schemes of the BJP, where the disbursement to the Social Welfare is nearly Rs 800 cr.
