With the Economic Survey presenting a more than rosy picture of the State’s finances, Chief Minister Dr Pramod Sawant, as was expected, presented a pro-people Budget in the government’s final Budget pitch before the next Assembly elections due early next year. Getting down to what the people want, the Chief Minister has proposed a Rs 100 crore MLA local area development fund, hot-mixing of all the roads in the next four months, comprehensive health checkups for all, job security to contract workers, 11,000 jobs in the government sector, settlement of the forest rights issue, besides various other promises across sectors that will greatly aid the government in reaching out to the people in election year.
The big announcement of the Budget, however, was the proposal to set up a State Mining Corporation to restart mining activities in the State. From a government that had been consistently looking at a legislative cure for the mining, this proposal was a surprise. It will have its proponents and its detractors, but it would probably be the best option that the government had over the others.
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For 2019-20, the Economic Survey reported that the GSDP growth stood at 9.95 per cent as against 5.51 per cent the previous year, with a continuous increase in revenue receipts from 2015-16 up to 2020-21 estimated at Rs 13,331.03 cr which is 10.94 per cent higher than 2019-20. Simultaneously, Goa’s non-tax revenue saw a growth of 20.95 per cent in 2020-21 compared to the previous year and non-tax revenue was Rs 3,686.59 cr. Now, 2020-21 was the year that the pandemic created the largest dent to the economy across the world. Goa on the other hand, appears to have bucked that trend to show a growth in non-tax revenue.
But here is a dampener; the State’s public debt is estimated to increase to Rs 17,952.24 crore by the end of the current fiscal, which should be a matter of concern. Last year the Economic Survey had admitted that public debt had been rising, though further stating that the debt/GSPD ratio is showing a decline. In his Budget speech this year, the Chief Minister said that it was because of the irresponsible fiscal management and continuous market loans taken by successive former governments that the State debt has kept on rising over the years, further stating that his government has taken steps to streamline the financial condition.
It is clear that the COVID-19 pandemic has turned the focus on health. The Budget makes a provision of Rs 1,719 crore to the health sector which is 19.60 per cent higher than the last year. The other areas of focus will be education and tourism. Education has got an outlay of Rs 3038 crore, while Rs 57 crore has been kept aside for cleaning of beaches. There is also a Tourism Trade scheme and the infrastructure tax has been slashed by 30 per cent for six months beginning April 1 in a bid to boost the real estate sector. All this is definitely aimed at elections 2022.
As he did last year, Sawant presented a revenue surplus Budget of Rs 58 crore but didn’t explain from where the money would come, especially since there are no new taxes. Last year the Budget’s revenue surplus figure had been Rs 500 crore. Unlike last year, there is a chance that mining operations could start sometime during the course of the next fiscal, but like last year, the spectre of the COVID pandemic still hangs over the economy and this could wipe out all estimates and forecasts made by any government. Sawant has promised a lot, he now has to perform. As admitted by him, the government has till December as after that the election code of conduct will fall in place. Can he deliver?
