GOA BUDGET 2001
Presented by Chief Minister Manohar Parrikar
on 22 March 2001
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Sir,
I
rise to present my maiden Budget which is also the first of
the new millenium. The millenium gone by has witnessed the
birth and adolescence of the State of Goa. The millenium which
we have ushered in should be witness to the growth and development
of the State into a well rounded, healthy and productive adult
that would contribute its mite to the desired development
process of the entire country. It is a proud task and responsibility
entrusted to each one of us to ensure that we attain the lofty
heights of progress and achievement which our tiny and talented
state is capable of. This tryst with success can become a
reality if we dare to dream and fill the unforgiving minute
with sixty seconds worth of distance run. This Budget is a
small but concrete step towards fulfillment of this dream
of ours. Sir, it is the people who make the State and as my
esteemed colleagues would acknowledge, it has been my endeavour
at every step to keep the common man as the focal point of
my dream. My vision is to transform Goa into a Model State
– a State whose path to high development will be emulated
by other States in the country.
REVISED
ESTIMATES 2000-01
Sir,
the overall performance of the State in the current year has
already been detailed in the Economic Survey which I have
laid on the Table of this House. Without going into the fine
print I would venture to highlight the major observations.
When my government took over, the financial position of the
State was precarious. The cash balance of the State was negative
for almost all the days during the previous two months. I
am happy to say that within 15 days of taking over the reins
of the state, I was able to turn around the finances of the
State and maintain a positive balance. The loan of Rs.57 crore
taken from EDC was utilised towards financing the Voluntary
Retirement Scheme and various developmental projects in the
State. Substantial additionalities were provided at the Revised
Estimate Stage to Public Works Department for expediting ongoing
developmental projects in the State. Sir, as your are aware,
there was a huge backlog of subsidies payable to the industries
in the State. My government provided an amount of over Rs.3
crore during the current year towards disbursal of these subsidies.
Substantial additional allocations were also provided to Sports,
Health, Irrigation and Forest Departments. The entire financial
provision for the Voluntary Retirement Scheme was made at
the Revised Estimate stage. The outstanding amount of Rs.20
crore of short- term loans taken by the previous Government
from IDC and EDC was also repaid in full. Taking all the factors
mentioned above into account, the deficit for the current
year stands at Rs.20.36 crore against the Budgeted figure
of Rs.11.69 crore. However, with a judicious combination of
expenditure control and plugging of revenue leakage I expect
to wipe off this deficit at the Actuals stage.
BUDGET
ESTIMATES 20001-02
With
these observations I now turn to the proposals for the year
ahead. Sir, as you would well appreciate, infrastructure is
central to growth and development of any economy. By infrastructure
I mean not only the physical but also the social infrastructure.
Education is the essence of civilization. There is an imperative
need today to reinforce our social and traditional roots in
order to ensure that the education system does not churn out
‘unemployables’ but individuals who can contribute meaningfully
to the task of nation building. In this era of market economy
and globalisation, economic growth has to be propelled by
the principle of comparative advantage. Growth, tempered with
social equity is the perfect recipe for a harmonious and progressive
society. Tourism is the traditional stronghold of the State.
It is not only the sun, surf and sea that Goa has on offer
but also a rich kaleidoscope of cultural trends and heritage.
Adventure sports, amusement parks and state of the art conferencing
facilities are some of the niche areas in domestic and international
tourism today. It is high time that we turn our sights to
the changing profile of tourism and make our State the most
sought after destination. With these objectives in mind I
propose to declare the current year as the year of Infrastructure,
Education and Tourism and enhance the outlays in these areas
substantially.
Goa
State Infrastructure Development Corporation
Sir,
the quantum of investment necessary to provide and upgrade
the required infrastructure facilities in the State is enormous
and outside the scope of normal resources available to the
State. This is a phenomenon all over the country and the need
of the hour is to provide some innovative solutions to overcome
this resource crunch. Government has recently floated the
Goa State Infrastructure Development Corporation to act as
the vehicle for ‘fast track’ infrastructure projects in the
State. The Corporation would work in tandem with the private
sector to raise the necessary funds and complete projects
in a time bound manner. Resource constraints and time and
cost overrun are two drawbacks of any project undertaken by
Government. The Corporation is an instrument to eliminate
both. Government has already entered into a Memorandum of
Understanding with professional entities like Maharashtra
Road Development Corporation which has considerable experience
in this field and would help to develop and execute the projects.
A similar agreement with Infrastructure Leasing and Financial
Services Limited is to be signed shortly. An amount of Rs.26
crore has been provided in the Budget for the Infrastructure
Corporation towards investment and contribution. With this
initial corpus, Government proposes to rope in resources to
the tune of Rs.500 crore to execute various infrastructure
related works in the State through Build Own Operate and Transfer
(BOOT) and/or Build Own Lease and Transfer (BOLT) mechanism.
Roads and bridges, infrastructure for education, transmission
and distribution of power, transport system, tourism projects
and sports complexes are some of the areas in which the Corporation
would focus its attention in the coming year. The Union Cabinet
had approved the setting up of an international airport at
Mopa last year. My government has already set the ball rolling
in this direction by constituting a high level steering committee
to implement the airport project.
Education
Sir,
as I have already mentioned, infrastructure denotes not only
physical but also social parameters. Education, to my mind,
is of prime importance in the field of social infrastructure.
I am aware of the fact that our State has one of the best
social indicators in the country. But, Sir, given the challenges
of the century ahead I can hardly afford to rest on my laurels.
Sir, as your are aware, immediately after Liberation, our
first Chief Minister Shri Dayanand Bandodkar took on the task
of spreading the reach of education to every nook and corner
of the State. The effort was geared towards literacy drive
and extending education to all sections of society. Today
the time has come when we need to focus our attention also
on quality to instill a sense of pride and confidence in the
minds of the young generation and help them to become self
sufficient. Providing basic facilities in the educational
institutions is one of the top priorities of my Government.
Proper school buildings, toilets, drinking water and provision
of basic teaching equipment are essential ingredients of a
successful education system. I have provided an amount of
Rs.3 crore for upgrading government owned primary schools
exclusively for this purpose in the Budget which would be
disbursed through the Zilla Panchayats for actual execution
of the works. Over and above that I propose to disburse loans
to the tune of Rs.30 crore for upkeep and maintenance of the
schools aided by Government. 50% of the amount would be repayable
to the Infrastructure Corporation which will be the agency
to execute the project, in the form of annuity. The balance
50% and the interest would be borne by Government. Thus, with
a monthly repayment liability of as low as Rs.278 per lakh
of rupees, the schools can upgrade the existing facilities.
The details of the scheme will be announced shortly and it
shall become operative from 1st June, 2001. I intend
to declare the talukas of Pernem, Bicholim, Sattari, Quepem,
Sanguem and Canacona as educationally and infrastructurally
Less Developed Talukas (LDT) in the State. Accordingly, priority
will be given to these areas in the fields of education and
infrastructure. I also propose to undertake a comprehensive
scheme of upgrading the library facilities available in the
schools and outside. A grant of Rs. 1.40 crore has been provided
by the Central Government for this purpose which would be
augmented by resources from the State’s side. In order to
discourage the growth of spurious coaching classes in the
State I have introduced a bill whereby registration of all
such institutions shall be mandatory. I intend to revise the
grant pattern to aided schools extensively so as to ensure
smooth transfer of grants depending upon the performance and
number of students in each school. This would also reduce
the workload for monitoring presently required to be done
by the Education Department. Sir, as we initiate the transition
from the dots and commas of English language to the dotcoms
of the wired world of the future, computer literacy and awareness
would be the index of progress of a society. Schools, therefore,
are the best vehicles to infuse this cyber culture in the
young minds. A provision of approximately Rs.7 crore has been
made in the Budget of Education Department to cover the infrastructure,
hardware and software requirements of almost all the schools
in the State. The outlay is almost thrice of what was provided
in the current year’s Budget. Keeping in view the pivotal
role of education in the society as a whole, the overall outlay
of the Department (plan & non-plan) has been increased
by almost Rs.15 crore vis-à-vis the amount provided
in the last year’s Budget. With the additional provision of
Rs.30 crore for the aided schools, the total outlay on School
Education works out to Rs.45 crore.
Sir,
in the field of higher education also, I intend to develop
the institutions in the State to be at par with the best in
the country. I am in the process of setting up an Advisory
Council for Technical Education which will be headed by one
of our most prominent technical and management expert Professor
Manguesh Korgaonkar. Professor Korgaonkar happens to be an
alumni of the Goa Engineering College, IIT and IIM and presently
heads the Sailesh Mehta Institute of Management in IIT, Mumbai.
I am confident that this Committee would provide the right
direction in the field of technical and higher education in
the State. I also propose to introduce Post Graduate courses
in the Pharmacy College in Goa. Upgradation and provision
of state of the art computer facilities in Goa Engineering
College will be taken up during the course of the year. Polytechnic
at Curchorem will be provided infrastructure facilities with
the first phase of the work being taken up during next year.
Architecture college is also being provided with new premises
from the next academic session besides addressing their other
inadequacies. With the above package of initiatives in the
education sector, I hope to begin the process of making this
sector a ‘model’ for the entire country.
Tourism
A
large multitude of the people in the State are economically
dependent on tourism and related activities. A decisive promotional
thrust and reworking of the ‘appropriate tourism’ model for
the state are the key elements in placing the touristic potential
on a higher growth orbit. In order to impart a substantial
boost to this sector, I propose to increase the total outlay
by almost Rs.8 crore. The additional amount would be utilised
primarily for an effective media campaign of the State as
the ultimate tourist destination. Installation of GIS based
tourist information kiosks at some of the important locations
in and outside the State, development of virtual walkthrough
of all important monuments and development of an interactive
website are some of the steps I intend to take in this direction.
All major beaches will be provided with adequate safety equipment
and trained life guards. Government is also committed to add
hinterland and eco-tourism to the existing beach tourism.
Nestled between the picturesque western ghats on one side
and the vast expanse of Arabian sea on the other, Goa has
a wealth of eco-system which is protected and preserved. Some
of these have immense potential and needs to be promoted as
tourist attractions. Olive Ridley Turtle Conservation Beach
at Morjim and Galgibaga, butterfly park and bird sanctuaries
are some of the projects my government intends to undertake
in the coming year. Development of several tourist spots like
the Nanda Lake in Curchorem, Carambolim Lake, fountain at
Boca-de-Vaca and Dudhsagar waterfalls are also on the agenda
of my government. Goa has long navigable rivers. These can
be fruitfully exploited by introducing river cruises by 20
to 25 seater boats to take tourists not only for pleasure
trips into the interior lush green and picturesque landscape
but also for sight seeing to some of the places of tourist
importance accessible by river. I propose to develop proper
infrastructure facilities for this purpose. Goa is also a
veritable treasure house of heritage assets like archaeological
sites, old magnificent houses, forts and other monuments that
sprinkle the length and breadth of the State. Provision of
good quality roads networking these tourist highlights will
be taken up during the course of the year. In order to make
the Goa Tourism Development Corporation embark on a professional
growth path Government has also decided to provide share capital
of Rs.1 crore to the Corporation. I also propose to take up
various investment-intensive tourism related projects through
the Infrastructure Development Corporation. An integrated
master plan for tourism is currently under formulation and
I hope to bring it before my esteemed colleagues during the
next session of the Assembly. Initiating collaborations and
joint ventures with the private sector shall be an important
component of this master plan.
Employment
Sir,
educated unemployment has been on the rise in the State and
this is of grave concern to all of us. Remedial measures need
to be taken on a war footing to provide gainful employment
to the youth. During the past decade the growth in employment
opportunities in the organised sector have not kept pace with
the swelling ranks of the unemployed on account of policies
which proved to be grossly inadequate in creating suitable
job opportunities. This demand supply imbalance needs to be
remedied with utmost urgency. With this objective in mind,
I propose to restore the balance in the job market by mopping
up the surplus unemployed through the following measures.
I propose to introduce and implement the Chief Minister’s
Rozgar Yojana (CMRY). This will be on the lines of the Prime
Minister’s Rozgar Yojana. However, in this case there would
be no requirement of formal collateral guarantee. The beneficiary
himself or any other person owning a house or 1000 square
metres of land can stand guarantor to the loans given. The
scheme would cover all activities except those falling under
the purview of agriculture. The loans would be given for a
period of six to eight years at an interest rate of 13% per
annum. 1% subsidy will be provided on interest if the same
is paid regularly. Subsidy on the loan to the extent of 15%
of the amount taken or Rs.15,000 whichever is lower will also
be provided under the scheme. There will be a moratorium period
of one year and six months respectively on payment of principal
and interest. The scheme would be implemented by the Economic
Development Corporation and clearances will be given within
a very short period. I also intend to implement the Deen Dayal
Rozgar Yojana under which subsidy ranging from Rs.15000 to
Rs.25000 would be provided for setting up kiosks/outlets for
sale of fruits, vegetables, cold drinks or providing services
like xeroxing, plumbing, etc. This scheme would be implemented
through the Goa Handicrafts Development Corporation. As in
the case of CMRY, beneficiaries under this scheme are required
to provide a guarantor owning 1000 sq. metres of land or a
house. I intend to cover around 1000 people through the above
two schemes. Sir, though government can no more act as the
principal source of employment it is incumbent on it to ensure
that unemployed youth are not exploited in the job market.
In order to ensure this and simultaneously develop a well
trained work force in Government I intend to launch a training
scheme wherein 1500 people, in phases, would be trained for
various activities related to Government jobs over a period
of one to two years. During the training period a monthly
stipend of Rs.1500 would be paid by Government. On successful
completion of training the trainees would be absorbed into
Government Departments in the vacancies arising out of retirement.
The scheme will be made operational from the next month itself.
Sir, I want to assure this house that this would not result
in an increased number of government employees and consequent
financial burden as the recruitment would be made only against
future retirements from government service which are expected
to be more than 1500.
Social
sectors
Sir,
the fruits of growth and development can percolate to the
masses only if it is supported and sustained by a strong social
fabric. Goa has historically been a haven of communal peace
and harmony. However, special attention needs to be given
to the weaker sections of society. I propose to recast the
widow pension scheme and make it easily accessible to the
beneficiaries. I also intend to cover all eligible candidates
and ensure that no one would be left out for technical reasons.
The old age pension scheme of Dayanand Niradhar Yojana will
be revamped and the amount will be increased to Rs.250 per
person from the existing Rs.100 per person from 1st
October, 2001. As in case of widow pension scheme efforts
will be made to cover all beneficiaries in the scheme. Government
will also waive the interest on government loans of less than
Rs.15,000 given to SC/ST/OBC’s in Low and Middle Income Groups
in case the outstanding principal amount is repaid before
the 31st of March, 2002. In case of widows the
maximum eligible limit for such waiver of interest would be
Rs.30,000. Sir, children are nation’s most precious assets
and it has been rightly been said that children will not inherit
the world from us but we have borrowed the world from them.
Let me take this opportunity to reaffirm my government’s commitment
to the rights of all children and more so for the physically
and mentally challenged ones. Keeping this in view, improvement
of facilities in Bal Niketan and Sanjay School will also be
taken up during the course of the year. A pension scheme for
toddy tappers in the State is also being formulated and will
be announced shortly. In order to alleviate certain long standing
demands of the Anganwadi workers I propose to reserve certain
avenues of absorption in government. I also intend to set
up a hostel for working women in the city of Panaji, to start
with. Sir, contract labour forms a large proportion of the
labour force in the State. In order to provide security to
these categories of workers I propose to introduce the Labour
Welfare Bill. Under this all workers in the State would be
registered through the issuance of smart cards. I hope to
extend this to all the citizens of Goa in due course and the
cards will function for several purposes ranging from drivers’
license to ration cards. A labour welfare fund would be set
up to which the employer would contribute 5% of the wage bill
of all contract labour which will carry an interest of 10%.
The proceeds of the fund would be passed on to the individual
on completion of 50 years of age. A contract labour society
has also been set up to take care of the interests of people
engaged in menial jobs. Sir, Providence has been benign that
Goa has not faced any serious natural calamity other than
flood during the monsoons. However, in order to ensure prompt
administrative responses to natural calamities, I propose
to set up a fund for disaster management with an initial corpus
of Rs. 1 crore in the Budget. The respective district collectors
would have the powers to disburse an amount of upto Rs.2 lakhs
at a time in case of any disaster. Sir, our brethren in Gujarat
were benumbed by the killer earthquake which left a trail
of death and devastation. It is our bounden duty, as fellow
countrymen, to assist them in picking up the threads of their
lives. My government proposes to take up the entire responsibility
of rebuilding one of the affected villages in the State. The
financial liability for this would be largely met from the
Chief Minister’s Relief Fund wherein an amount of nearly Rs.1
crore is expected to be collected in the form of donations
made by the people. I take this opportunity to thank all the
people of the State for contributing generously towards this
noble cause.
Agriculture
and allied activities
Sir,
agriculture in the State has been a neglected area in the
recent past. It is high time that we give due attention to
this sector in terms of increasing productivity and income
generation. This would also ensure that people employed in
this primary sector are not diverted to the organised sector
where the prospects of employment are limited. During the
current year my government has already operationalised support
price scheme for copra with the help of NAFED. I would like
to provide further support to the agriculture sector in order
to make it remunerative. The per capita cost of this support
is very nominal compared to the gains in terms of production
and employment. Mr. Speaker Sir, as you are very much aware,
the sugar industry is under a lot of stress due to the low
off-take and sale price of the sugar. In order to give an
incentive to Goan farmers to increase the acreage and productivity
of sugarcane I intend to increase the purchase price of local
sugarcane by Rs.100 per ton and simultaneously decrease the
burden on the Sanjevani sugar factory for procurement of cane.
For this purpose I have allocated an amount of Rs.1 crore
in the Budget. This works out to a support of approximately
Rs.150 per ton of sugarcane. This is first in a series of
initiatives which I intend to take during the course of this
year. Sugarcane growers also face severe shortage of manpower
during the harvesting season. In order to tide over this problem
and increase the yield of sugar, government is also considering
to procure a mechanised harvester through the Sanjeevani Sahakar
Karkhana. Sir, there are a multitude of overlapping schemes
in the agriculture sector which not only obstruct and delay
the smooth functioning but also makes the entire process complicated.
I intend to reorganise and consolidate all these schemes to
ensure that they focus on giving maximum benefit to the targeted
group. Watershed development and management practices are
increasingly being recognised as prudent practices and are
essential for increased productivity in agriculture. Several
water bodies in the State have become inoperative due to siltation
and lack of maintenance. I propose to undertake pilot projects
in some areas wherein the desiltation and restoration work
would be taken up by the local beneficiaries who would provide
contribution through Shramadan. All other expenses would be
borne by government. This scheme will be executed through
NGOs/local agricultural groups. The success of these pilot
projects would be an encouragement for extending broader coverage
to other parts of the State. An amount of Rs.20 lakhs has
been provided for this purpose. I also intend to revitalise
the cooperative movement in the State by investing in various
cooperatives. Thanks to the Union Minister of State for Agriculture,
Government has already been assured of a loan of Rs.2 crore
on refinancing basis from NCDC for this purpose. Excessive
and unguarded mining activities have caused irrevocable damage
to some areas under agriculture in the State. I intend to
declare such areas under agriculture as protected and disallow
any new mining activities in these areas. Chemical fertilisers
would also be discouraged in view of the extensive soil degradation
caused due to their use. In order to give an impetus to the
production of milk, government has decided to subsidise procurement
of more milch animals in the State. Sir, I vividly recollect
the riotous situation created among peace loving Goans on
account of a fish famine caused due to water pollution from
the effluents of an industrial unit many years ago. Fish is
an integral part of life of the Goans. I am extremely distressed
to notice that over the last few years the fishing community
is under tremendous stress due to lack of proper facilities
and high cost of capital and consumables. The fishing output
of the State has stagnated due to over exploitation of marine
resources. The desperation has reached such a level that the
fishermen are ready to venture into the deep seas even during
the ban period in the monsoons. The number of trawlers have
also increased beyond sustainable capacity. To prevent further
damage I intend to ban issuance of fresh licenses to fishing
trawlers during the current year. To give a boost to the fishing
community and ensure a decent livelihood, government has decided
to extend sales tax exemption on diesel for fishing trawlers/boats
sold through the existing fishermens’ co-operative societies
to the extent of 9000 kilolitres during the year. Further,
all spare parts and ancillaries required for fishing activities
within the State including spare parts of engines sold through
these societies shall be liable for sales tax only to the
maximum extent of 2%. I also intend to address various other
problems of the fishing community during the course of the
year.
Forest
and Environment
Nature’s bounty is plentiful in Goa. The rich and varied forest
cover has to be preserved and at the same time has to be exploited
for gainful employment and income generation. The twin objectives
can be met only through effective implementation of social
forestry. Government would shortly come out with a comprehensive
policy in this regard. I also intend to set up six recreational
parks in various cities which would provide leisure facilities
for children. The process for development of the Anna Fonte
spring in Margao is already under way. The work relating to
beautification of the childrens’ park at Campal will be taken
up during the course of the year. Sir, the environmental hazards
arising out of use of disposable plastics is well known to
all. My government has decided to tackle this menace by phasing
out the use of plastic in government offices except for a
few essential items. I also intend to restrict and discourage
the use of plastic, in general, in the State. In order to
achieve this, I propose to exclude food items, mineral and
aerated water and beverages packed in non bio-degradable plastic
containers from the purview of sales tax based incentives.
Further, mineral water, beverages and aerated water packed
in non bio-degradable plastic containers shall be subject
to sales tax at the rate of 20%. Tapping of the potential
of renewable sources of energy is not only eco-friendly but
also an energy saver. On a trial basis, I intend to convert
the entire street lighting system of Panaji and the new building
of Shrama Bhavan at Patto to that of one based on non conventional
energy. Experience gained from this pilot project would be
put to gainful use in future.
Health
Sir,
technological advancements in medical science have revolutionized
the medical landscape. I intend to harness these advantages
in the field by allowing setting up of super speciality hospitals
in the state through private participation. I also propose
to introduce the latest concept of tele-medicine in the State.
In the area of basic health services, upgradation of the existing
infrastructure by revamping the primary health care centres
will be my priority. Mandatory smart cards will be issued
to health care beneficiaries in the State and the quantum
and spread of Mediclaim shall be widened. Construction of
a new building for Asilo Hospital in Mapusa would be taken
up on BOLT scheme on payment of annuity through the Budget.
Sports,
Art & Culture
As
my esteemed colleagues would appreciate, healthy mind in a
healthy body is an essential ingredient for a complete individual.
Sporting activities aim not only at physical resilience but
also at psychological endurance. I am aware of the fact that
there is much room for improvement of the sporting infrastructure
in the State. As I have already mentioned, substantial allocations
were given in the current year to the Department of Sports
to improve the infrastructure facilities. Fatorda stadium
in Margao has been renovated in the current year. This, I
am sure, will provide the right perspective for the upcoming
cricket match between India and Australia to be played here,
though I cannot guarantee the outcome of the match. In the
ensuing year I propose to make the Ponda and Mapusa swimming
pool operational. An allocation of more than Rs.2.30 crore
has been made in the Budget for this purpose. I also intend
to take up various projects relating to Sports and Sports
complexes through the Infrastructure Development Corporation.
The rich composite culture and heritage of the State needs
to be preserved. The ancient monuments are the bearers of
this rich legacy. I am making a provision of almost Rs.2 crore
in the Budget for restoration and upkeep of these monuments
as against only Rs.25 lakhs provided in the Budget of the
current year. Some of the monuments which would be taken up
are Jain Temple at Kudne, Cave temple at Khandepar, restoration
of Adil Shahi Tank at Surlatar, Rock carvings at Pansiamal,
Collem, fort of Cabo De Rama, chapel of Jeronimus at Chodan,
ancient site of Mother Goddess Mhalsa at Verna. Goa has a
rich tradition of artistic talent producing world class singers
like Lata Mangeshkar, Mogubai Kurdikar, Kishori Amonkar, Pundit
Jiterndra Abhisheki to name a few. Unfortunately, this tradition
seems to be losing out to the competition and influences of
the modern society. To instill a sense of cultural appreciation
and to foster creativity, my government has decided to implement
a scheme wherein 50 schools will be given a grant of Rs.50,000
each for introducing music or any other performing art as
an additional activity in the school. Rs.25 lakhs have been
provided for in the Budget and depending on the response the
amount will be enhanced further. Rs.25 lakhs have also been
provided for as grants to various organisations promoting
and performing cultural activities in the State. Budgetary
provisions for completion of Ravindra Bhavan at Ponda and
Margao have been made. I also intend to upgrade the facilities
provided in the Goa College of Music during the course of
the year.
Transport
Kadamba
Transport Corporation is the mainstay of road transport in
the State. It has been rendering yeoman service in fulfilling
its social obligations. However, due to loans taken at abnormally
high rates of interest the Corporation is facing considerable
fiscal stress. In order to alleviate this stress I propose
to advance a soft loan of Rs.15 crore to the Corporation which
would be primarily utilised to repay all outstanding high
cost loans. The amount will be provided through the Infrastructure
Development Corporation. Since Kadamba has to subsidise various
categories of commuters in the interest of the State, I propose
to increase the amount of subsidy given to the Corporation
to Rs. 4 crore from the existing amount of Rs.3 crore. Building
and renovation of bus stands in the major cities and optimum
utilisation of commercial space will also be taken up through
BOOT scheme. Future generations would not pardon us if we
fail to prevent environment pollution. I, therefore, propose
to replace public transport vehicles older than 15 years in
a phased manner as a small step in that direction. I intend
to give a grace period of one year during which owners may
voluntarily replace the aged vehicles through new ones. Government
will provide a subsidy amount of 15% or Rs. 1.5 lakh whichever
is less, for vehicles purchased and built within the State.
A budgetary provision of Rs.1 crore has been made for this
purpose. The high rate of fatalities due to road accidents
is an increasing cause for concern. In order to ensure road
safety one interceptor is in operation since December with
the assistance of the Delhi based Institute of Road Traffic
Education to check instances of rash and drunken driving.
The results have been very positive. Hence, I am in the process
of acquiring two more interceptors fitted with all modern
gadgets and two trauma units through the assistance provided
by the Road Safety division of Ministry of Surface Transport.
I also intend to set up a training school for courses on road
safety and safe driving with the assistance of Institute of
Road Traffic and Education, MARG and Western India Automobile
Association. An amount of Rs.50 lakh has been provided for
this purpose in the Budget. In the area of inland waterways
I propose to privatise some of the ferry routes on as is where
is basis. This would reduce burden on government finances
substantially.
Industry
and Mining
Sir,
in Goa, tourism and agriculture have been the traditional
employment generating sectors. However, since the early 90’s
industry has also emerged as a major source of employment.
Unfortunately, due to various factors, including lack of proper
policy guidelines, the State has invited a lot of polluting
and power guzzling industrial units. Substantial part of the
workforce also has been employed from outside the State. During
the last two to three years the industrial climate in the
State was severely vitiated primarily due to corruption and
harassment at all levels. It was after a lot of effort on
the part of my government that a favourable industrial climate
has been restored at last. In the ensuing year I intend to
further improve this situation so that the right kind of industries
set up units in the State. The draft industrial policy is
under formulation and will be soon made available for public
debate. I do not need to reiterate that these policy guidelines
will encourage non polluting industries with high employment
potential.
The
growth of industry in the State has been lopsided causing
imbalance in employment potential within the State. In order
to balance the same I intend to categorise the State into
backward, less developed and developed industrial sectors.
Talukas of Pernem, Sattari, Sanguem, Quepem and Canacona would
fall into the backward category. Bicholim, Bardez and Tiswadi
would come under less developed category. For disbursal of
new subsidies, industries located in backward areas and less
developed areas shall be entitled for 100% and 50% benefit
respectively.
In conformity with the policy of my government, I intend to
uphold all the promises made by previous governments to the
industrial sector, even though this entails considerable financial
burden. As pursued in the current year I propose to clear
all the pending cases of subsidy sanctioned but not disbursed
to the industrial units. An amount of Rs.5 crore has been
indicated in the Budget for this purpose. Additional amount
will be provided at the Revised Estimate stage depending upon
the requirement. Government has also decided to provide share
capital to the tune of Rs.5 crore to Economic Development
Corporation. This, I expect, would give a further boost to
the industrial environment in the State. One of the reasons
for failure on the industrial front has been the high cost
of capital that has attracted only risky, volatile investment
and fly-by-night operators in the State. In order to ensure
that cost of capital does not become prohibitive, as has been
the case in the recent past, I propose to put a ceiling on
interest on loans from EDC at 4.75% above the rate at which
the same is obtained by EDC. In case of small scale industries,
the ceiling will be pegged at 3.25%. The penal rates of interest
and interest on bridge loans against subsidies will also be
provided relief during the course of the year. In response
to various representations received from industries, I propose
to amend the sales tax laws suitably to do away with the present
system of furnishing continuation certificate and certificate
to the effect that the industry is not of high polluting nature
for claiming sales tax based incentives. In cases of small
and tiny units with a capital base of less than 25 lakhs,
interest subsidy will be provided on working capital subject
to fulfillment of certain criteria. In order to modernise
and upgrade the vocational skills in the State, my government
proposes to introduce new courses in the ITIs and do away
with outdated courses. The Industrial Development Corporation
would take up the responsibility of upgrading two such ITIs
in the State.
Irrigation
Sir,
as your are aware the Tillari Irrigation project has been
delayed considerably thereby proving to be a drag on the State’s
resources. With the help of Central Assistance and bonds raised
by the Tillari Irrigation Corporation we have cleared dues
of Maharashtra government to the tune of Rs.54 crore. In the
current year major works of an amount of Rs.13 crore have
been undertaken in the State. It is expected that water will
be available to the State from the right bank canal by the
end of the year 2001. This will be utilised to irrigate about
1200 hectares of land in the Pernem taluka. I have provided
Rs. 68 crore during next year for the Tillari project. Water
resources Department has also initiated a novel scheme of
providing contract for works to unemployed engineers registered
with the Department. Initially, the contractors will be given
work orders of upto Rs.4.5 lakhs without calling for tenders.
During the current year the Department’s manpower resources
will be utilised for desiltation of nullahs in the urban areas
and protection of bunds from sea erosion.
Civic
Amenities
Roads,
water supply, transport and sewage system are the backbone
of development of a State. Though Goa fares quite favourably
in these respects in comparison to other States in the country,
there is still a lot of scope for improvement. The outlay
of Public Works Department has been enhanced from Rs.189 crore
to Rs.264 crore so as to enable it to undertake developmental
works in these areas. Construction of the Siolim-Chopdem bridge
will be completed by August 2001. Efforts will also be made
to complete the Amona Khandola bridge. Resurfacing and widening
of roads of about 150 km.will also be taken up. However, keeping
in view the overall resource constraints this provision may
not be enough to undertake all the required projects. The
water supply schemes of Opa, Assanora and Sanquelim will be
financed through sources outside the Budget. Completion of
these schemes would give a lot of respite to the water scarce
areas of Bardez, Bicholim, Tiswadi and Ponda and would also
ensure adequate revenue generation to sustain the cost of
financing these projects. During the last two decades there
has been a substantial shift of population from the villages
to the cities. Unplanned growth has led to narrow roads and
congested lanes in these cities, which has been the cause
of traffic bottlenecks, accidents and various types of pollution.
The decaying civic amenities need to be infused with a fresh
lease of life. Hence, I propose to implement a comprehensive
traffic management plan to upgrade and decongest the five
major cities of Panaji, Margao, Ponda, Vasco and Mapusa. The
project would include provision for flyovers and other latest
facilities required for decongestion and fast movement of
traffic. The Sewage Infrastructure Corporation formed under
the administrative control of Public Works Department would
take up projects for improvement of sewage and sewerage facilities
in the State. To start with, the works will be taken up in
Porvorim, Mapusa and Calangute.
Sir,
from 1995 to 1999 the power sector in the State was practically
short-circuited due to large scale thefts and purchase and
use of substandard material. Power guzzlers were permitted
indiscriminately and the T&D losses rose to as high as
36%. This culminated into a two year ban by High Court on
any new power connections to the industry. During last one
year, after carrying out extensive changes, conditions have
improved appreciably. The reported T&D losses have come
down to below 20%. Independent power project which was started
in the State during this period put the State’s finances in
a precarious situation. Adding fuel to fire was the soaring
price of naptha resulting in a situation where 20% of power
supply was gobbling up 55% of the expenses on power purchase.
Speaker Sir, I am pleased to state that my government has
been able to negotiate successfully to modify the PPA to reduce
the state’s burden to 50% of the originally contracted liability.
I expect to make savings of around Rs.28 crore in the next
year itself on purchase of power. As already announced, Government
of India has approved setting up of a 400 KV/630MVA sub-station
at Colvale and laying of the 400 KV line from Kolhapur to
Colvale. M/s Power Grid Corporation which is entrusted with
this work is expected to complete it by 2003. Government will
also to set up six substations at Amona, Dharbandhora, Velim,
Vasco, Agassaim and Margao during the course of the year.
Better consumer relation and service should be the hallmark
of any utility. I intend to keep up this trend and enhance
it further. Prompt redressal of complaints from consumers
shall be ensured by round the clock operation of two additional
mobile vans with VHF communication system which will be procured
shortly. For 100% electronic metering of all substations,
HT/EHT consumers, central assistance of around Rs.9 crore
has been sanctioned under the Accelerated Power Development
Programme through Power Finance Corporation. Work has already
started in this direction and is expected to be completed
by December 2001. The second phase covering LT consumers will
also be taken up and completed in 2002. Captive power generation
policy has already been declared. This will help industries
tremendously. Mr. Speaker Sir, to give a boost to this scheme,
I hereby announce the innovative concept of power banking
facilities for captive power generation.
Law
and Order, Judiciary and Administration
Sir,
when I took over, the entire police force was demoralised
and highly politicised on account of frequent transfers including
multiple transfer of an official on a single day. The police
intelligence and information network was virtually wiped off.
Promotion and recruitment in police force was utterly neglected
thereby causing tremendous shortages in sensitive areas. I
am happy to say that during my tenure the system has been
restored to a considerable extent. Police force has been able
to crack down on dreaded antisocial elements in the State
and managed to effect a huge arms haul. It is my firm commitment
to make the police force more efficient and professional.
The concept of policing entails effective intelligence gathering
and crime prevention. To cement this concept, I intend to
augment the corpus of the Secret Service Fund and also provide
mobile phones to officers of the level of Deputy Superintendent
of police and above. The Budget provides for an amount of
Rs.4 crore with the assistance from Centre for modernisation
of police force including provisions for setting up of fingerprint
bureau and computer networking of the police stations. An
amount of Rs.5 crore for a period of five years have been
provided by Central Government under the upgradation scheme
for Police. The amount, augmented by State’ resources, as
required, will be utilised for constructing additional police
outposts including Gogol and Mardol and procuring necessary
modern equipment. The construction of the harbour police station
and improvement of Vasco police station are proposed during
the next year. Maintenance of police housing and barracks
were totally neglected for several years resulting in inhuman
living conditions. I have already provided Rs.25 lakhs in
the current year for urgent repairs. I intend to provide more
than Rs.1 crore in the next financial year for further improvement.
One more administrative tribunal and one more industrial dispute
court are on the anvil. In order to expedite disposal of long
pending cases my government proposes to set up additional
courts through the assistance provided by Centre under upgradation
grants. I hereby declare the setting up of a separate cell
for Non Resident Indians under the Home Department to address
their needs in a more efficient manner and also to maintain
a comprehensive database which would serve as a potential
talent pool to assist the development of the State. I also
intend to reinforce the consumer movement in the State by
reactivating the consumer redressal forums.
Housing
Sir,
construction sector has been facing a severe recession all
over the country in the recent past. The need to give a boost
to this sector was realised and duly addressed in the Central
Budget. I intend to enhance this further by announcing a reduction
in the interest rate for House Building Advances for government
servants. At present there are four slabs of interest varying
from 7.5% to 12% on loans ranging from Rs.50,000 to Rs.7,50,000.
I propose to reduce it to two slabs – the first ranging upto
Rs.3,50,000 and the second above Rs.3,50,000. The rate of
interest chargeable on loans taken henceforth would be as
low as 5% and 7% respectively. I also propose to include staff
of government aided institutions under the House Building
Advance facility of the Government. With these changes I expect
to spur activities in the construction sector by a substantial
extent. My government has also decided to disburse these loans
through a line of credit from one of the reputed financial
institutions of the country. I expect to disburse around Rs.30
crore towards these loans in the next financial year.
Pension
Scheme for Journalists
Sir
as your are aware, the fourth estate does not have any retirement
benefits and has to constantly remain under the tension of
their post retirement finances. I am happy to announce that
Government has decided to set up a Pension Fund for journalists.
The scheme will be operated by Information and Publicity Department.
The modalities of the scheme are being worked out and would
be declared shortly. A provision of Rs.5 lakhs has been made
in the Budget. This, I hope, will go a long way in strengthening
the fourth estate and maintaining its independence.
Local
Self Government
Sir,
the 73rd and 74th Amendment has given
extensive powers to local bodies. Unfortunately parameters
for accountability of these institutions have been lacking.
It is high time that people realise this and exercise their
power of franchise judiciously. Sir, the capital city of Panaji
is facing council elections three days from now. My colleagues
and friends from the opposition benches would agree with me
that the voters from the capital city have always shown political
maturity. Electing a proper council which would gel with the
government would go a long way in making Panaji a model city.
Panchayats and municipalities are the links of administration
with the common man. In order to make these institutions more
effective I propose to implement various schemes through them.
Garbage management, setting up of fish/vegetable markets and
desiltation of nullahs are some of the schemes I have in mind.
Special vehicles equipped with hydraulic system will be introduced
for the towns of Margao, Mapusa, Vasco and Ponda for clearing
garbage. Municipal records of all the councils will be computerised
during the course of the year. Government will provide specific
grants for this purpose through the Directorate of Municipal
Administration. A concrete plan of action will also be drawn
for the improvement of the notified slums in the State so
as to improve the living condition of the slum dwellers. For
this an amount of Rs.2.7 crore has already been sanctioned
by the Central Government. The State government will provide
funds for land acquisition. To begin with Moti Donger at Margao
will be taken up for rehabilitation under this scheme. In
aggregate, an amount of Rs.10.68 crore has been provided in
the Budget for grants to municipalities as compared to Rs.
3.70 crore provided in the current year’s Budget Estimate.
Sir, there has been a long standing demand of the staff employed
by panchayats to increase their emoluments. Though the government
would not be able to take the entire responsibility of providing
for the same permanently, I intend to allocate an additional
amount of Rs.60 lakhs to the financially weaker panchayats
for improving the administration in their panchayats. The
grant will be provided for a period of five years during which
period the panchayats should generate enough resources on
their own to sustain these emoluments. Special ad hoc grants
will also be provided to the B and C category panchayats The
grants in aid to the panchayats have been increased from Rs.3.96
crore this year to Rs. 7.67 crore for the next year. Sir,
the power bill for street lighting, even though subsidised,
has caused substantial financial stress on the local bodies.
They are also burdened with innumerable requests for replacement
and new installations. To cover the cost of street light bills
and maintenance I propose to introduce a duty of 3 paise per
unit of electricity consumed. In the ensuing year, attention
will be focussed primarily on maintenance rather than new
additions. Development grant of Rs.2 crore is earmarked for
NGPDA for purpose of completing the market complex at Mala
and development of satellite township at Curca. Similarly,
Rs.50 lakhs have been provided to SGPDA to complete the market
complex project at Margao. The PDAs are expected to utilise
these grants to develop these commercial projects and use
the surplus generated thereby, for further development. Zilla
Panchayats, which have been formed, will be given a constructive
role and adequate funds for development of rural areas.
Information
Technology and E-Governance
Sir,
the importance of information technology in today’s world
hardly needs to be emphasised. The spectacular advancement
in this arena and the all encompassing utility of information
technology impinges on every aspect of human life. My government
sincerely wants to be a part of this cyberian revolution and
reap its benefits by making Goa an intelligent State. A separate
account head has been created for the first time and an initial
allocation of Rs.5 crore has been made in the Budget towards
various aspects of information technology. Further provision
will be made depending upon the progress of the schemes undertaken.
Creation and development of IT enabled services and state
of the art infotainment industry with a view to provide gainful
employment is one of the priorities of my government. An integrated
plan to implement the schemes in a coordinated manner is under
formulation. A high powered committee comprising eminent personalities
like Professor Raghunath Mashelkar and Shri Narayanamurthy
has already been formed for this purpose. In order to make
governance speedier and more transparent implementation of
e-governance is an absolute must. I have already announced
the policy of making all government employees below the age
of 55 years computer literate within the next two years. Budget
provisions have been made in Electricity, Revenue, Excise,
Police etc. for purchase of computers and related software.
I also propose to set up a Centre for Information Technology
with an initial budgetary provision of Rs.60 lakhs.
Tax
Revenues
Sir,
having detailed my expenditure proposals I now turn to the
revenue generation aspects.
Sales
Tax, Entry Tax, Luxury Tax and Entertainment Tax
Sales
Tax has been the main source of revenue for the State. Though
the collection was sluggish in the initial part of the year,
due to effective monitoring and plugging of leakage subsequently,
collection in the current year is likely to exceed the amount
projected in the Budget by more than Rs.10 crore. Keeping
in view the imminent switch over to the Value Added Tax system
from 1st April 2002, efforts have been made to
streamline the structure of sales tax in this direction. I
intend to abolish the prevailing additional tax in a phased
manner. To start with, additional tax on all dealers except
those dealing in petroleum goods having annual turnover of
Rs.15 crore and above is proposed to be abolished. To partially
compensate for the loss of revenue that will occur due to
this abolition of additional tax I intend to introduce a surcharge
of 5% on the tax payable. This will, however not result in
any increase of prices as it would be a mere readjustment.
At present octroi on diesel, petrol and cooking gas are being
collected by the Municipalities and Panchayats. The rates
of octroi vary from panchayat to panchayat and municipality
to municipality. This was resulting into malpractices where
the consumers ended up being cheated and paying more. In order
to bring uniformity in the rate and eliminate any form of
manipulation, I intend to abolish this octroi. In lieu of
this, the sales tax on these items will be increased by 2%
of which 1.5% of the amount generated will go back to the
respective panchayat or municipality from where it is collected.
The balance 0.5% would go to the Zila Parishads for executing
various developmental activities. In case of cooking gas the
rate of sales tax leviable would be 1% and the proceeds from
this will be transferred proportionately to the local bodies.
In order to encourage foreign ships entering Mormugao port
to draw their supply of bunker fuel i.e. furnance oil, lubricating
oil and light diesel oil from the State, I propose to levy
nominal sales tax of 1% on these items in place of the existing
rate of 12-18%. This will not only give revenues to the State
but would also bring foreign exchange to the country. I also
intend to increase the rate of sales tax marginally on certain
items as appended in the enclosed Annexure I. However, most
of these items not being items of mass consumption, will not
result in any additional burden on the common man.
In
view of the switchover to VAT, registration needs to be made
compulsory. While doing so, I intend to introduce/enhance
registration and renewal fees for various categories of dealers/hoteliers/persons
under respective statutes as detailed in Annexure II. I intend
to simplify the sales tax procedure so that dealers having
turnover lower than Rs.3 lakhs in a year shall not have to
go through the procedure of registrations. They will also
not have to file any return. Similarly, dealers having yearly
turnover of below Rs.10 lakhs shall have to file only annual
return. The chalan to be provided to the dealers in the bracket
of less than Rs.3 lakhs will be treated as registration cum
return. At present industrial units in small scale, medium
scale and large scale sectors are entitled for sales tax based
incentives. I propose to introduce a scheme for benefit of
those industrial units who intend to switch over to the scheme
which envisages 50% subsidy and 50% tax payment during the
unexpired period qualified for exemption under the prevailing
system. On payment of 50% of the tax collected the remaining
50% can be retained as subsidy. However, in case of liquor
industry availing benefit of sales tax based incentive, switch
over to this scheme will be compulsory. As a further incentive
to industry I propose to reduce the tax on industrial inputs
other than petroleum products from the existing 3% to 2%.
Further, the bulky items such as clinkers, sands etc shall
be eligible for concessional tax of 1% only. In addition,
spare parts of plant and machinery which were not included
within the purview of concessional rate are also proposed
to be taxed at 2%. Furnance oil was made eligible for concession
of two percent of sales tax when used by industrial units
as raw material. In view of the positive response received
from industries I propose to grant further concession of two
percent on the said item when used as raw material for industrial
use. I also intend to extend this facility for steam and power
generation units. To give a boost to agriculture, I propose
to reduce the tax on power tillers and other agricultural
machineries to 1% as against the existing rate of 8%. Spare
parts for these machineries will be taxable at 4% instead
of 8%.
In
view of the overall trend of decreasing rate of interest I
propose to reduce the interest rate for delayed payment of
tax and other dues under sales tax and luxury tax law to a
uniform rate of 15% per annum.
At
present, the State does not have the system of registering
sales tax practitioners. It is proposed to introduce this
system of registration so as to bring a certain degree of
accountability and ethical standard with respect to voluntary
compliance under tax laws. The rules and regulations in this
regard will be formulated by the Sales Tax Department. In
view of the substantial contribution of sales tax and other
allied taxes to the exchequer and consequent monitoring and
enforcement of the same, it is necessary to have the post
of an additional commissioner. This will also be necessary
to undertake the additional responsibilities relating to switchover
to the proposed Value Added Tax system. For benefit of dealers
and effective monitoring of tax revenue from major tax payers
and dealers having substantially large turnover, I propose
to open special wards to take up their assessments on fast
track basis. Further, in order to tighten the administration
and plug leakage relating to sales tax and excise duty I intend
to set up an independent squad reporting directly to the Secretary
Finance. The squad will also undertake all types of audit
and surprise checks. With these measures I expect to shore
up the net revenue collection under sales tax by around Rs.70
crore. However, in the Budget I have projected a conservative
increase of only Rs.45 crore over the revised estimates.
Certain
commodities which do not form a part of industrial raw material
and are used in execution of works contract carry much lower
rate of entry tax at present as compared to sales tax rate
applicable. It is proposed to enhance the rate of entry tax
on these items as detailed in ANNEXURE III. I also propose
to increase the rate of entry tax on motor vehicles and petroleum
products from the existing 10% to 12% to encourage purchase
within the State.
Sir,
as tourism has been identified as
a thrust area in the next year, I propose to reduce the luxury
tax to 4% and 3% respectively as against 12% and 8% during
the months of June, July and August. This, I hope, would help
the industry to attract more tourists during the off season
and thereby generate more revenues for the State. Additionally,
the tax will be leviable on the actual bill instead of the
existing practice of the levy on rate cards. However, as far
as complementary rooms are concerned the same will be taxed
at one fourth of the rate applicable Moreover, as far as sales
tax on hotel industry is concerned I propose to reduce the
tax rate on cooked food and non alcoholic beverages drastically.
The highest tax bracket will be 10%, followed by 2% and 1%
as against the existing rates of 12%, 8% and 4%. The details
of rates are appended in ANNEXURE IV. Hotels, restaurants
having annual turnover of less than Rs.3 lakhs shall be totally
exempt from payment of sales tax subject to registration.
I also propose to exempt limousine services, air mail services,
secretarial services, photocopy/xerox machine services, courier
services, telex services, boat cruise charges, sight seeing
charges, water sports services from the ambit of luxury tax.
These steps, I hope, would be a big boost to the tourism sector
in general and hospitality industry in particular.
At
present, luxury tax is applicable to luxuries provided in
a hotel for residential purposes. I propose to introduce luxury
tax also for accommodation provided for commercial purposes
such as holding of trade fairs, exhibition, sales demonstrations
and promotions, conferences etc. The rate of tax will be 12%
of the amount charged or Rs.250 per day, whichever is more.
Sir
with the advancement of technology new forms of entertainment
are coming into existence by the day. I propose to bring these
forms of entertainment into the tax net. Accordingly, I intend
to levy entertainment tax on cyber cafes, pool parlours and
entertainment through antenna and cable television. Entertainment
provided by activities like dance, theatrical performance,
musical performance, games & sports etc wherever rates
for admission exceed Rs.500 will be liable for entertainment
tax. However, these rates will be effective only from the
7th of April as most of the cricket fans are as
supportive of this government as they are of the Indian team.
The proposed rates are enclosed in ANNEXURE V.
Excise
Duties
Sir,
Excise duty has almost stagnated for over the last five to
six years in spite of increase in rates. This has mainly been
due to evasion and inappropriate policy framework. In order
to get a substantial increase in revenues from this source
stable policy needs to be pursued without too many changes
in the midstream. In the next year my government intends to
stabilise the revenue from this source before launching reforms
to augment it further. Excise structure will be rationalised
and revenue from licensing improved. This will partially compensate
for the loss due to leakage. Extensive drives will be undertaken
to check renewal of bar licenses and enforcement of time schedule.
All licensees should ensure that records of all purchases
made are maintained. In case of non-availability of such purchase
bills, the concerned item will be treated as non-duty paid
and heavy fines will be imposed.
As
additional revenue generation measures, imported foreign liquor
will be brought under the purview of excise duties. A small
export duty will also be imposed on liquors sold out of the
State. The details of the changes made in the duty structure
and imposition/enhancement of license fees are enclosed in
ANNEXURE VI. These measures, I expect, will provide an additional
revenue of Rs.7 crore to the State.
Sir,
as far as liquor is concerned, generation of revenue is not
my primary motive. The name of the State has been tarnished
for proliferation of bars and alcoholism. Health cost due
to easy availability of liquor including those of spurious
qualities has been immense. A sizeable proportion of money
earned by a large number of people in the middle and low income
category is being spent on liquor thereby neglecting family
obligations. Alcohol, which is being construed as a symbol
of prestige by the youth, has to be immediately controlled.
Keeping these in view, I intend to discourage further addition
to liquor outlets by imposing a non refundable fee of Rs.10000
to 50000 for any application to open such new outlets. Moreover,
government is in the process of notifying committees which
will have representatives of health organisations, womens’
organisations, NGOs working in the fields of road safety as
well as social workers. Any application for opening of liquor
outlets except those in the notified market areas will be
scrutinised by this committee. The license will be granted
only if it has the clearance of the committee. With these
measures, I intend to begin the process of controlling consumption
of alcohol and alcoholism. However, to make my efforts successful
I also require to have the whole hearted support and cooperation
of all sections of the society.
Non
Tax Revenues
Now
I turn to the non-tax proposals. Sir, I do not propose to
raise the electricity rates till March 2004. However, as I
detailed earlier I expect that due to savings on account of
power purchase I will be able to generate considerable surplus
in the power sector by the next year itself. I have also made
budgetary provisions for computerisation of electricity bills
to ensure faster clearance and credit of receipts.
Sir,
the thrust of my revenue proposals in this Budget is plugging
of loopholes, recovery of arrears and introduction of user
charges at all levels. I sincerely believe that good internal
housekeeping is the first step towards good governance. In
order to ensure speedy disposal of revenue cases I intend
to reinforce the collectorate offices by providing additional
revenue officers. Sir, revenues from user charges on goods
and services provided by the Government has been an oft neglected
area. In fact, even within government departments there was
a huge backlog of electricity and water bills. My government
has taken a stand that even though it might not affect the
overall revenue or expenditure of the State, departments like
Electricity, Irrigation should run on commercial lines. I
have provided substantial amount in the current year’s budget
to take care of these inter-departmental payments. To extend
this logic further I propose to introduce fees, albeit small,
on all services provided by the Government. There are cases
where these fees are abysmally low and I propose to increase
them commensurately. Some of the proposals relating to fees
on hoarding, parking lots, stamps and registration which were
announced in the previous year’s budget still remain to be
implemented. I assure this House that these will be taken
up in right earnest. Fees for professional courses, I feel,
also needs to be increased commensurately. However, this will
be backed up by requisite scholarships for the poor and SC/ST/OBCs.
Sir,
in order to generate further resources
for financing of infrastructure projects in the State I propose
to levy a toll varying from Rs.25 to Rs.100 on all vehicles
entering and leaving the State. I expect to generate a revenue
of at least Rs.10 crore from this fee and the same would be
utilised by the Goa Infrastructure Development Corporation
to finance infrastructure related projects in the State.
Sir,
with these revenue generating efforts I propose to raise the
percentage of State’s own tax and non-tax revenue to 58% from
the last year’s figure of 52%. This has been made possible
primarily due to elimination of implicit subsidies in the
form of user charges and increase in sales tax.
Expenditure
and Debt Management
Sir,
as I have already pointed out fiscal prudence is central to
financial health of the State. As my colleagues would have
realised, I have no hesitation in incurring expenditure which
would ensure welfare and development of the State. But I have
a strong aversion towards frivolous and unproductive expenditure
because I believe that a penny saved is a penny gained. I
intend to monitor and regulate the expenses incurred by government
departments on STD facilities, utilisation of motor vehicles
and consumption of electricity. With the implementation of
VRS, I expect to save around Rs.13 crore on salaries every
year. However, keeping in view the fact that a portion of
the liability on account of VRS would rollover into the next
year, the actual reduction to that extent may not be visible.
The full impact would be visible only from the year 2002-03
when there will be no further liability on account of VRS.
I have taken up a comprehensive restructuring exercise of
staffing pattern of each Department in Government vis-a vis
the functions performed. Already six senior level posts including
those of Director Employment and Dirctor Women and Child Development
in the state administration stand abolished. A few more are
likely to be abolished shortly. Increased outlays for development
expenditure would go hand in hand with increased accountability.
I have set up the institution of an Ombudsman to act as a
channel for ventilation and redressal of employee grievances
regarding service conditions etc. With the culmination of
VRS and initiation of process of abolition of redundant posts,
I have attempted to exercise strict control over the ever
expanding waistline of bureaucracy. I am also taking several
steps to bring down the expenditure on overheads substantially.
My government will also look into the aspect of restructuring
of the existing public sector enterprises in the State to
make them profitable and competitive entities. After a detailed
study a decision regarding disinvestment of the enterprises
would be taken. As is evident from the Budget at a Glance,
the proportion of expenditure on salaries, wages, pensions,
gratuity and establishment and grants in aid taken together
is pegged at 47% compared to 52% in the previous year. The
categories of works, maintenance and supplies and investment
contribution and advances which are developmental in nature
stands at 30% of the entire expenditure. Subsidies which contribute
2% of the entire expenditure, are mainly targeted for industrial
development and benefit of underprevileged sections of the
society.
Many
of my esteemed colleagues have expressed concern over the
increasing debt servicing liability of the State. Sir, I am
alive to the situation intend to take concrete steps to keep
this liability within sustainable levels. The State has already
set up a consolidated sinking fund with the Reserve Bank of
India to make a yearly provision of 3% of the outstanding
amount of market borrowings. I intend to go a step further
and set up a Guarantee Redemption Fund on similar lines. Government
has already initiated action in this direction and a scheme
to this effect is being formulated in consultation with the
Reserve Bank of India. The setting up of such a fund would
not only help us to create a corpus for repayment of contingent
liabilities of the State but would also help in enhancing
the credit rating of the State. An amount of Rs.10 crore has
been apportioned for this fund in the Budget. Over a period
of five years I intend to increase the corpus of this fund
to 15% of the amount of outstanding guaranteed loans of the
State. Sir, borrowing, per se, is not detrimental provided
the proceeds are used for revenue generating purposes. It
may not be possible to utilise the entire amount of loans
for schemes which would generate revenue immediately. However,
there has to be a balance between the incremental amount of
loans taken and revenue generated. The proportion of borrowings
my government intends to take recourse to is only 30% compared
to the previous year’s figure of 36%. The proportion of expenditure
on debt servicing is also projected at 21% compared to 22%
in 2000-01. My government will provide enough safeguards to
ensure that we do not burden the future generation unduly.
Moreover, with the recent phenomenon of reducing interest
rate I expect that the interest burden would also reduce substantially
in the years to come.
Sir,
with all these proposals of expenditure and revenue generation
I end up with a revenue deficit of Rs.141.57 crore, fiscal
deficit of Rs.440.79 crore and an overall deficit of Rs.8.78
crore. As is evident, compared to the figures of the previous
year there is a pronounced improvement on all fronts. The
overall deficit projected is due to the carry over of a deficit
of Rs.20 crore from the current year.
Conclusion
Sir,
with these proposals, facts and figures I come to the conclusion
of my speech. Mr. Speaker Sir, conclusion of my speech is
only the beginning of my endeavour- an effort in which I hope
to have the active assistance of each and every esteemed colleague
of mine. It is the people of the State who we represent in
this House and it is these people with whom we have to traverse
into the future. Sir this Budget is only a direction of the
road to follow – the road itself still lies in front of us.
We may be strangers to the times ahead but with resolve in
mind and support from all I am confident of facing any challenge
posed by the future. Though I do not have the indicators like
stock exchanges to gauge the effects of my budget, I do sincerely
hope that it would reach the hearts of people for whom I stand
in this august House. Sir, if we are to achieve the Goa of
our dreams, then each of us will have to work hard and together
to reach that goal. I am reminded of the words of Lord Krishna
in the Bhagwad Gita
"Karmany
eva dhika raste
Ma
phalesu kadacana"
Work
is worship. Fulfil your duties with no regard to the result.
I do sincerely believe that if this message is followed by
us we will definitely attain our cherished goals.
Thank
you
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