PANJIM: While praising Goa in many fields, the Chairman of the 15th Finance Commission, NK Singh while addressing a press conference said that Goa has to work further on ‘Ease of Doing Business’ notwithstanding the progress it has made in this regard. The two-day consultation between the Commission and the Goa government led by Chief Minister Pramod Sawant ended on Friday.
“It is not the objective of the Commission to penalize success and to reward non-performance. We need to have a reconciliation of the three important characteristics, which are need based on latest population data, equity in relation to poorer state and last to reward efficiency. In seeking to reward efficiency, Goa will be an important state because the progress it has achieved in terms of improved demographic management needs to be recognized,” said Singh categorically.
Chief Minister Pramod Sawant had made a presentation before the Commission demanding that extra grants devolved to Goa be increased from 42% to 50%. On Goa’s demand to increase extra grants, Singh said “there was hardly any State which had not made a similar demand. The State needs to set up its State Finance Commission as early as possible for the robust functioning of the economy.”
He added that, “As far as States own tax revenue is concerned, my view is that there is a lot of room to play. For instance, we have noted that excise rates on liquor have gone up but whether that will dissuade tourists is a question. Also, in terms of property tax, has the government fully utilized the available parameters of not.”
When asked about the post mining closure effect and revenue going down, Singh said, “Yes, they have presented to us a detailed memorandum formally. Goa is the last State we are visiting, but certainly not the least. Goa is a jewel in India’s crown and we as the Finance Commission would like the jewel to remain unblemished.”
Singh added that they recognise that Goa has a huge potential and is one of the top ranking states in India and has achieved notable success on many parameters, and needs to be encouraged and incentivised as we go forward. He added that the rate of growth in Goa is well above the national average but it has huge potential to grow further and the State needs to have combination of measures to achieve that. He further stated that Goa can generate revenue from tourism and also from property tax.
“Since Goa has great beaches, the State can develop alternate sources of energy, not only necessarily solar but wind and tidal energy,” Singh advised.
On Goa’s population he mentioned that “there is no doubt that Goa’s geographical area is small and looking at the high density of migrant population, I hope that all these migrant population those who have settled down here, are reckoned in the next round of census at there is a huge floating population here as well, which puts a strain on infrastructure and facilities too. This deserves some priority and attention.”
On the tourism potential, he said that they have been given to understand that in the last two years the footfalls of tourists have gone down. “Partly it may be because of the global factors, where there is a general slowdown in the economy but it could also be because there are other competing destinations and market forces lead that naturally,” he added.
On the ecological cover, Singh said the Commission would see how it can recognise the fiscal costs in better ecological cover (in Goa). Singh added that Goa had inherited a few challenges in solid waste management and sanitation but it was heartening to see that the State government had taken up these sectors as priority areas. The 15th Finance Commission, which was constituted in November 2017, is tasked with making recommendations on distribution of net proceeds of taxes between Centre and States, principles governing grants-in-aid of States’, out of the Consolidated Fund of India, and measures to augment this fund.
