Projected @ 10%, State growth may take a nose dive for 2019-20

PANJIM:  The dwindling financial figures may take a further plunge as the COVID-19 or Coronavirus outbreak has put the State in a virtual lockdown.

The State has taken several preventive measures as the government announced closure of schools colleges, pubs, discos and casinos till March 31.

The decisions have been taken even as Goa reported no positive cases and the quarantined patients have tested negative for the virus.

While the State finances have already been in the red for the last two financial years over the mining closure, it has also been borrowing almost Rs 200 cr every month to meet expenses.

The Budget last year presented by the then ailing CM Manohar Parrikar had projected Goa’s growth rate at 10 per cent for 2019-20. The new CM, Dr Pramod Sawant has, however, projected growth at 8.6 per cent for 2020-21.

However now, amidst the virus threat it may not be possible to meet the projected figures for 2019-20. The fear now is that the State growth will be in the negative.

“I agree the State growth will be in the negative,” Finance Secretary Daulat Hawaldar said, when asked for his comment on the partial shutdown.

Experts also believe that the closure of casinos, multiplexes and clubs, that bring in huge GST collection, would have an adverse effect. “There would be revenue loss straight of Rs 10 cr due to casino closure itself,” said an expert.

Travel and Tourism Association of Goa’s outgoing president Savio Messias said that the industry is staring at a bleak future in the coming months. “There is very low occupancy as low as 10 to 20 per cent, flights are coming empty, conferences, weddings are getting cancelled,” Messias said.

He added that though there are no positive cases reported in Goa the fear of travelling remains. “The major fear is about getting quarantined for 14 days,” he said.

Messias said that the industry is now asking for reduction in taxes as well as postponement of GST payments. “Hotels and industry had taken advances and now they have to repay due to cancellations,” he said.

He, however, praised the efforts of the Goa government to stave off the threat till now, but questioned why the borders have not been closed. “Maharashtra has seen almost 60 cases and we are still allowing free movement of people. We must at least stop non-essential travel,” he said.