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Goa CM Pramod Sawant set to present his first ever budget. Will he walk the tightrope?
As Chief Minister Pramod Sawant gears up to present his first ever budget and with the state having fallen well short of its revenue generation targets over the previous year, he is facing an uphill task to not just make a good first impression but also bring the state back on a firm financial footing
As Chief Minister Pramod Sawant gears up to present his first ever budget and with the state having fallen well short of its revenue generation targets over the previous year, he is facing an uphill task to not just make a good first impression but also bring the state back on a firm financial footing.
Ahead of his budget speech, which will be tabled on Thursday afternoon, Sawant who succeeded Parrikar in March last year, promised a budget that will bring sustainable development to the state.
“When we say budget is not only regarding the economics, but the overall development of the state from agriculture to IT and all sectors. This year’s budget should be a good budget for the state. The focus will be sustainable development of the state. When we say sustainable development, it is all inclusive. We will focus on rural development,” Sawant said while speaking to reporters.
Staring in Sawant’s face is a slowdown in the tourism economy, a shutdown in mining as well as a GST deficit that has crossed 30%.
Asked about the revenue shortfall, Sawant said that the state is being compensated by the central government under the scheme to compensate for the GST shortfall up to 2022.
“We are still due two installments of the compensation for the current financial year. We have also asked the Finance Commission that the compensation be extended beyond 2022,” Sawant said.
Goa’s GST deficit has more than doubled over the last financial year leaving the state heavily dependent on the compensation offered by the Centre. Goa’s revenues have been especially hit by the shutdown in mining which, at its peak, used to contribute around ₹1,200 crore to state revenue as well as the slashing of GST rates on hotels and restaurants a crucial component of the state’s economy.
The Economic Survey that was tabled in the legislative assembly on Wednesday, placed Goa’s gross state domestic product at 77413.48-crore (current prices) for the year 2018-19 and registering a growth of 9.82% over the previous year. The GSDP is expected to grow to 84,798 crore over the coming year. Growth rate has however fallen by 1.26% from 11.08 earlier.
In the run up to the budget, the Chief Minister met a range of stakeholders including those from the tourism industry, the mining industry, both of whom have complained they are in the doldrums, besides others and has also received nearly 400 proposals from various individuals and groups as part of his pre-budget consultations, all of whom have suggested ways and means to enliven the economy.
The opposition has however, accused the government of leading the state into a debt trap on account of its unprecedented borrowings.
“The state is in a debt trap. You are taking loans to pay salaries, you are taking loans to pay previous loans. The total actual debt figures are Rs 24,928.23 crore including Rs 2148.85-crore which works out to a per capita debt of 1.49 lakh on each head,” opposition legislator Luizinho Faleiro said.
The State Government has borrowed unprecedented Rs. 681 crore only in a single month December 2019 making up 30% of its total borrowings for the year.
Cornered from all sides, eyes are now fixed on the tightrope walk that the Chief Minister will embark on.
