Goa is on the verge of a debt trap as the public debt of the State has risen by around 70% from 2009 to 2015. It has also increased its reliance on Central loans and SLR-based market borrowings over these years. Both these components account for a whopping 94 per cent of the total public debt of the State. The progressive increase of market loans (an increase over 22% in 2012 compared to 2009) poses a threat due to constraints on its repayment.
Industry was disappointed that NPV scheme, which is the sole incentive for maintaining the competitiveness of the existing MSME industries, has not been extended. The entry tax exemption for industries has been deferred. Industry hopes it is an oversight and not a policy decision and will be corrected by the government with suitable executive directions with the overall budgetary provisions.
The creation of state infra fund for PPP projects was welcomed, though there was disappointment with the decision to not extend NPV scheme and that no decision was taken to abolish entry tax.
Industry was happy with the substantial increase in the allocation for tourism to Rs 260.9 crore from Rs 140.9 crore. Allocation for funds for a global school for tourism hospitality is encouraging. Increase in VAT on fuel will affect tourism likewise other industries.
The idea to create an events calendar, which will incorporate existing festivals and add new ones, will benefit the industry, they felt but said it needs a higher allocation then the token Rs 1 crore now provided.
Simplification of the licencing regime associated with registration of hotels in a new law proposed to be tabled in the next session is the vindication of the demands of the industry in this field in the pre-budget representations for the previous budgets.
