GOA BUDGET 2002
Presented by Chief Minister Manohar Parrikar
on 14 June 2002
Budget
2000 | Budget
2001
Education
| Tourism
| Industry
| Info Tech
| Employment
| Infrastructure
Sales,
Luxury & Entry Tax | Excise
Sir,
At the very outset, I have immense pleasure
in welcoming all the members to this newly elected august
House. Sir, the recently concluded elections have been a resounding
vindication of the democratic values enshrined in the Constitution
of our country. Good governance, which, in a democratic
setup like ours, is tantamount to achieving the greatest good
of the greatest number, is what my government, as a repository
of public trust, is firmly committed to deliver. Sir, with
this objective in mind I rise to present the Budget for the
year 2002-03. I expect to have the whole hearted support of
all my esteemed colleagues in this august house in my endeavour
to make Goa a model State of excellence in all respects for
other states to emulate.
REVISED ESTIMATES 2001-02
Sir, from the yardstick of financial parameters,
the highlight of the year 2001-02 has been the substantial
increase in the revenue receipts of the State. Sir, I am glad
to announce that in spite of severe recessionary trends in
the overall economic scenario in the country, I have been
able to achieve a net increase in tax and non tax revenues
of about Rs.80 crore as indicated by the Revised Estimates
for the year 2001-02 over and above that of the Budget Estimates
for the same year. The increase is a huge Rs.300 crore over
the comparable figures for the Actuals of the year 2000-01.
Sir, to fortify my contention, the average collection of tax
and non tax revenues during the last seventeen months since
my government has been in power is almost Rs.95 crore per
month as against an approximate amount of Rs.72 crore during
the previous sixteen months of the predecessor governments.
This achievement is all the more laudable since the increase
in revenues have been realised without increasing the tax
burden on the people of the State. On the contrary, in case
of Sales tax and Luxury Tax, the rates were reduced substantially
in the Budget proposals for the year 2001-02. The sales tax
on petrol and diesel were brought down by 3% prior to the
Budget. This reduction, still in force, means that diesel
in Goa is cheaper by Rs.4.05 per litre and petrol is cheaper
by Rs.4.57 per litre as compared to prices in Mumbai and Bangalore
thereby making Goa the least taxed state in the western region.
Sir, this I think, is a glimpse of what good governance
can achieve, to start with. In furtherance of this line
of thinking, I have already announced an average reduction
of 7 percent in the electricity tariff during the current
year in a scenario where tariffs have been increased by 15
to 17 percent by all the states in the western region.
Sir, in spite of this impressive performance
on the revenue front, the finances of the state were under
considerable strain on account of a shortfall in receipts
due to non realisation of loans projected in the Budget. However,
the developmental expenditure of the state has not been impacted
negatively as I have not allowed the welfare role of the state
to be diminished. Rather, Sir, the introduction of the Dayanand
Social Security Scheme has amply underscored the welfare role
of my government. This unique scheme with a humanitarian dimension
has been a tremendous success and has been widely acclaimed
within the state and all over the country. The scheme was
conceived after the Budget was presented as I perceived that
there was a pressing need to provide special assistance to
the aged and vulnerable sections of the society. An amount
of Rs.20 crore was paid to Life Insurance Corporation as premium
for this purpose during the year. In spite of all this, I
was able to fulfil almost all the financial commitments made
to various sectors in my Budget for the year 2001-02. Sir,
at this stage, I would also like to bring to your notice that
budgetary outlays in Departments like Public Works, Electricity,
Women and Child Development has almost doubled during the
last three years while in Departments like Tourism, Social
Welfare, Panchayats and Urban Development , this increase
is manifold. The Plan realisation for the year 2001-02 has
been 108 percent of the approved amount. Significantly, and
side by side with these achievements, I have also been able
to reduce the revenue deficit for the year 2001-02 from the
Budgeted amount of Rs.141.57 crore to Rs.130.82 crore at the
Revised Estimate stage. The overall deficit on the Consolidated
Fund is expected to show a drastic reduction from Rs.99.48
crore to Rs.17.06 crore. The fiscal deficit is lower than
the Budgeted figures. However, due to the procedural necessity
of regularising the advances made from the Contingency Fund
during 2001-02 in the Budget for the year 2002-03, there is
an underestimation of expenditure for the year 2001-02 by
about Rs. 15 crore. The detailed sector wise performance for
the year 2001-02 has been listed in the Economic Survey which
I have already laid on the table of the House.
With these broad observations I now propose
to enumerate the Budget proposals for the year 2002-03
BUDGET ESTIMATES 2002-03
Sir, I firmly believe that high sounding
rhetoric without a tangible performance sheet is a big fraud
on the common people. In order to substantiate my stand I
intend to give a comparative picture of my achievements vis
a vis the important announcements made by me in the last year’s
Budget Speech. I intend to do the same along with the proposals
for the current year.
Goa State
Infrastructure Development Corporation
Sir, as I had promised last year, the Goa
State Infrastructure Development Corporation has started its
operation in full swing. The preparation of feasibility reports
for construction of eleven bridges are in progress and I intend
to take up the construction work of these bridges shortly.
The bridges in this list are at Aldona-Corjuem, Corjuem-Poira,
Sanvordem-Curchorem, Pirna-Vajrem, Uguem, Amona-Virdi, Cavelossim-Assolna,
Amdai, Khareband, and at Chodan. In the current year also
I intend to take up another seven bridges at Gavndali-Cumbarjua,
Mungul bridge(replacement of old), Rasai-Durbhat, Thivim-Moira,
Halarn-Sal, Bicholim near KTC bus stand and Ambeshi-Ganje.
The consultancy report on a proposed parking lot in Panjim
on BOOT/BOLT basis is also nearing completion. The redevelopment
of the Old Goa Medical College Complex while simultaneously
preserving its unique architectural character and the market
complex has also made considerable progress. In addition,
the Corporation has already provided around Rs.87.50 crore
for the Opa, Assanora and Sanquelim Water Supply Augmentation
Projects at a very reasonable rate of interest. Almost 70
percent of the work of these projects have been completed.
The Corporation has also provided Rs.20 crore to Tillari Irrigation
Corporation for the Tillari Irrigation Project and Rs.15 crore
to Kadamba Transport Corporation for substitution of high
cost loans. An amount of Rs.6 crore has been provided for
upgradation of infrastructure of aided schools and higher
secondary schools under the scheme of education department.
In the current year, I propose to undertake upgradation of
infrastructure in the coastal tourism belt of Majorda-Cavelossim
in Salcete, Sinquerim-Baga in Bardez and Morjim- Keri in Pernem
taluka.
In addition to this, I also intend to take
up infrastructure development in the archaeologically and
eco-touristically important belt of Dudhsagar, Tambdi Surla,
Bondla, Mahavir wild life sanctuary in Sanguem and Quepem
taluka. The development would be mainly in the form of improvement
of road network and water supply besides specific tourism
related facilities. Further, the Fatorda lake project which
has already been conceptualised would be taken up for execution
during the current year. The projects will be mainly developed
on annuity basis besides being supplemented through the income
of the revenue generating projects. Bus stands at Mapusa,
Margao and Canacona will be taken up for development on BOOT/BOLT
basis. KTC bus stand at Panaji will be developed on a similar
format through the Corporation. Hospitals at Mapusa, Margao
and Canacona will be taken up during the current year on annuity
payment basis. Facilitating legislation would be enacted to
ensure removal of bottlenecks for speedy completion of the
projects by Goa State Infrastructure Development Corporation.
Education, Sports,
Art and Culture
Sir, as I had indicated last year, my thrust
in this crucial sector is to provide value added and employment
oriented education to the students. Sufficient number of computers
were provided to all the schools during the course of last
year. In the current year, the computer education in schools
at secondary and at higher secondary levels will be further
strengthened by providing additional computers. District computer
laboratories with state of the art facilities, for the benefit
of teachers and students would be made operational by July
2002. Sir, the emergence of the information technology era
demands that future generations are cyber-savvy and well equipped
to handle the knowledge explosion. As a small step towards
that objective, I intend to launch a new "CYBERAGE STUDENT"
scheme to increase computer penetration levels by giving personal
computers at a nominal fee to all students in the eleventh
standard in Science stream, to begin with, at a nominal fee.
A provision of more than Rs.10 crore has been made in the
Budget for this purpose and the scheme would be operationalised
by September, 2002. The scheme would be further extended to
include other streams in the years to come. I also plan to
integrate latest computer aided teaching techniques in the
curriculum of schools and colleges to achieve the dual purpose
of enhancing familiarity with computers and simultaneously
imparting a qualitative thrust to educational inputs. I have
also provided a special one time grant of Rs.50 lakhs for
computerisation of colleges.
My government had signed a pathbreaking MOU
with IIT Bombay for upgradation of technical education in
the state. In pursuance of the terms of the MOU, 2 seats at
Post Graduate level have been reserved for Goan students at
IIT Bombay, subject to the clearance of GATE exam. During
the current year, an extended campus of IIT Bombay in Goa
is on the anvil.
Increased interaction between industry and
educational institutions, I strongly feel, is a prerequisite
to favourably equip the students to meet the demands of the
job market. In order to ensure that this qualitative interaction
is result oriented, I also intend to set up career guidance
cells with the help of NGOs to provide aid and assistance
to the educated job aspirants and a resource pool for industry.
The concept of Superschool Complex will be
further strengthened by providing additional funds with a
view to improve quality of education. Besides the standard
courses of DEd and BEd , the training techniques and methodologies
would be evolved to ensure improvement in quality and motivational
level of the teaching community. A special provision for this
purpose has been made in the budget.
My government is concerned that many children
in Goa attend school without proper breakfast, and many do
not carry tiffins. Realising the importance of correct nutrition
towards nurturing a healthy mind, I propose to launch a mid-school
meal scheme at the primary level. Sir, in an egalitarian society,
financial distress should not be an impediment in pursuing
higher education. I propose to introduce interest free loans
to students from underprivileged economic backgrounds thereby
underscoring my government’s firm commitment to equality of
opportunity as envisaged in the Preamble to the Constitution
of our great country. A Budget provision of Rs.10 lakhs has
been made for this purpose which would be suitably enhanced
based on the response to the scheme.
The number of seats in Goa Medical College
and various engineering colleges have been increased by 30
and 400 respectively in order to throw open the doors of professional
education to meritorious students. Further, AICTE permission
for commencing additional post graduation courses in pharmacy
college has been obtained and the same is expected to be operational
during the current academic year. I also propose to set up
training centres to equip Goan students to face and succeed
in national level competitive exams like the civil services,
IITs and IIMs. Rs.1.45 crore has been provided for completion
of first phase of polytechnic at Curchorem. Funds to the tune
of Rs.1.93 crore have been also been provided for government
colleges at Khandola and Pernem.
Students residing in Dhargalim constituency
find it extremely difficult to attend higher secondary schools
at Mapusa or Pernem and are forced to drop out. I propose
to remedy this situation by setting up a facility for higher
secondary education with special focus on vocational and employment
oriented courses, at Nagzar in Dhargalim. Further, to ensure
that meritorious students are not deprived from oppurtunities
for international exposure, I have made a budgetary provision
to bear travel and related costs in such cases.
As I have already mentioned, in the arena
of upgradation of infrastructure facilities in aided schools,
an amount of Rs.6 crore has been disbursed as grants/soft
loans. As the scheme has evoked tremendous response from parents,
students and school managements, I intend not only to continue
it but also further extend it, during the current year, to
colleges including professional colleges.
This government believes that the teaching
community should be treated with respect and dignity. Keeping
this in view, we have already decided to abolish the contract
teaching system. Wherever a full time teaching vacancy exists
no contractual appointment will be permitted. All existing
appointments already would be regularised during the current
year. The long standing demand of implementation of Part B
scales for teaching staff has already been fulfilled. The
few anomalies and grievances in this respect are being looked
into and I expect them to be resolved by September, 2002.
Sir, I strongly believe that development
of language requires more than mere lip service. Meagre amounts
were provided in the past, stunting the growth and development
of languages. Rather than indulging in verbosity, I intend
to correct this aberration by enhancing substantively, the
grants available for development of Konkani and Marathi besides
providing specific funds for construction of premises, publication
of books by local authors, development of performing arts
and telefilming. I have made a budgetary provision of Rs.40
lakh each for the harmonious development of Marathi and Konkani
besides providing Rs.10 lakhs for development of Sanskrit.
The amounts would be enhanced if required in due course. I
am happy to indicate that the current year is being the 125th
birth anniversary of the legendary Shenaibab Goenkar. The
government would celebrate the occasion in a befitting and
reverent manner. Goans are conoisseurs of music and the arts.
With a view to enrich this tradition, my government had introduced
a scheme of teaching music/performing arts in 50 selected
schools last year. The tremendous response to this scheme
encourages me to extend the scheme to 100 schools in the current
year. The grant amount would also be enhanced from Rs.50000
per annum to Rs.75000 per annum. This, I hope, would bring
hidden talents to the fore and produce more Lata Mangeshkars
and Kishori Amonkars who would make Goa proud in years to
come. I also take this opportunity to announce that my government
would set up a Sangeet Academy during the current year which
would be dedicated to the memory of late Mogubai Kurdikar,
the "Gana Tapaswini" of Goa.
The Rajiv Kala Mandir at Ponda which was
languishing for the past several years, due to lack of financial
support, has been successfully completed and inaugurated.
We have already laid the foundation stone for Ravindra Bhavan
at Margao to be built at an estimated cost of Rs.16 crore.
Construction work would commence during the current yar and
the same is expected to be completed by December 2003. As
Goans are avid lovers of art and drama, I intend to set up
smaller versions of Kala Mandirs in all the talukas. I intend
to start work on such Kalamandirs at Vasco, Mandrem and Mapusa.
An initial provision of Rs 5crore has been made for this purpose
which would be suitably enhanced at a later stage, as required.
During the last year my government provided
a substantial outlay for sports and youth affairs. Sports
Department and Sports Authority of Goa were provided with
funds for development of stadiums and playgrounds at various
places. The ones at Haturlim, Agacaim, Agonda and Morjim are
nearing completion. Works on those at Assolna, Curchorem,
Poriem, Chicalim. Mandrem, Mala, Utorda, Cuncolim, Canacona
and Ponda are at various stages of completion. Repair works
of the indoor hall at Sanguem and swimming pool at Mapusa
have been completed. I intend to carry on the good work by
taking up mini sports complexes at GEC Campus, Curchorem,
Vasco and Bicholim. These complexes would comprise swimming
pools, indoor and outdoor stadiums wherever feasible. Development
of grounds at Asagao and other areas lacking such facilities
would also be undertaken during the current year.
Besides music, Goans dance to the tune of
good football. With the intention of supporting this sport,
the Sports Authority of Goa had released Rs.75 lakhs to Goa
Football Association during the past year. I intend to continue
to do the same this year with the clear intention of ensuring
that the money provided encourages local football talent and
clubs patronising such footballers. Sports policy, which is
under finalisation, would be made operational before the end
of the current year.
Tourism
The importance of tourism in revenue and
employment generation in the state was recognised by substantially
increasing the outlay on this sector last year. It is absolutely
imperative to continue in the same vein and impart a cutting
edge to this sector which is required to face stiff competition
provided by other destinations in the country. Due to the
initiatives already taken, Sir, I am glad to state that in
spite of the events of September 11th, overall
tourist traffic to the State has increased almost by 9 pecent.
This has been achieved due to focused marketing initiatives
and brand building of the state as an all weather and all
season destination. Industry status has already been accorded
to this sector. Improvement of road network in stretches of
tourist importance, illumination of temples, mosques and churches
and upgradation of GTDC hotels and tourist information centres
have been completed on a large scale. As detailed by me earlier,
I propose to take up further improvement of roads and infrastructure
facilities in the State to the tune of Rs.50 crore through
the Goa State Infrastructure Development Corporation. A budgetary
provision of Rs. 3 crore has been made towards payment of
annuity to Goa State Infrastructure Development Corporation
for this purpose. The projects of development of Nanda Lake
at Curchorem, Alorna Fort and Harvalem waterfalls which have
significant touristic value would also be taken up. Beach
safety arrangements have been substantially augmented by deployment
of trained additional lifeguards who have undergone rigorous
training at the National Institute of Water Sports. Synergy
between information technology and tourism has been realised
by undertaking initiatives like touchscreen kiosks and virtual
walkthrough CD Roms. The website for the tourism sector will
impart a new thrust to IT led tourism marketing and would
showcase Goa, in all its kaleidoscopic finery to the world
by the end of this month. The Tourism Master Plan and the
tourism policy spelt out by my government are prominent signposts
on the road to be traversed in making Goa the ultimate tourist
destination.
Since tourism the world over is essentially
a private sector led activity, I intend to co-opt the private
sector as associates in infrastructure development and marketing
campaigns. For this purpose I propose to set up a corpus fund
for marketing into which government would contribute double
the amount of contribution received from the private sector
subject to a ceiling of Rs.5 crore during the current year.
The fund would be managed by government with the help from
representatives of Tourism industry and utilised for the sole
purpose of marketing the State and would be in addition to
the normal outlay of around Rs.6 crore for marketing activities
which I have earmarked separately in the tourism budget. Multilingual
signage system and promotional material would also be made
available for convenience of foreign tourists. New and potentially
promising source destinations like Russia and Scandanavian
countries would be tapped for attracting tourists. I also
intend to focus on diversification of the tourism product
by increasing the thrust on heritage and eco-tourism so as
to increase the retention period and quality of tourism that
the State has on offer.
In order to create an appreciation of our
composite heritage I intend to launch a ‘heritage house’ scheme,
the details of which would be worked out by August 2002, with
the help of private participation. Training of various stake
holders in the industry like tourist taxi drivers and strengthening
of the regulatory mechanism to offer better facilitative services
to tourists is one of my top priorities. I would be failing
in my duty towards the tourism sector in their hour of distress
if I do not extend further fiscal incentives to ease their
burden. However, I will detail this at a later stage in my
speech. All tourism related ancillary and support services
would be accorded the status of industry and extended facilities
and incentives at par with the tourism industry including
subsidies. These measures outlined by me would increase cohesion
and integration among all players in the industry and would
give them leeway to offer cost effective and attractive packages
to the tourists. In keeping with the due importance given
to tourism and tourism related activities by Government of
India, I expect to receive considerable support from them
in development of tourism circuits with neighbouring states.
The immense potential of domestic tourism would be effectively
tapped while simultaneously promoting Goa as a brand name
and prime destination for European and other foreign tourists
thereby ensuring long term sustainability of the industry.
Sir, I firmly believe that cooperation, more than competition,
is the need of the hour. We have already recognized this sentiment
by entering into MOUs with Karnataka and Andhra Pradesh State
Tourism Corporations for reciprocal marketing of products
and services. All out efforts would be made to further these
marketing synergies with other states and airlines during
the current year.
The Goa Tourism Development Corporation would
also aim to expand its ambit of activities by facilitating
bookings for smaller hotels which are not in a position to
incur marketing overheads. Keeping in mind my pronouncements
on this sector, I intend to increase the outlay for tourism
department to Rs.21.92 crore, which is almost four times the
outlay three years ago.
Employment
Sir, freedom from unemployment by 2005 was
one of BJP’s main election promises and I would be failing
in my duty if I do not lay out, in clear terms, the direction
which I intend to follow in creating 8000 additional jobs.
I had undertaken three novel initiatives last year through
the Pre-employment Training Scheme, the Deen Dayal Rozgar
Yojana and the Chief Minister’s Rozgar Yojana. The Pre-employment
Training scheme, which is already operational, would be continued
during the current year for which a budgetary provision of
Rs.1.6 crore has been made. The Deen Dayal Rozgar Yojana and
Chief Minister’s Rozgar Yojana would be reviewed with a view
to generating an additional 1000 jobs under each scheme.
Sir, I also intend to declare the employment
policy which would stress on generation of employment in various
key sectors like tourism, pharmaceuticals and information
technology besides self employment opportunities. I intend
to strengthen linkages in the tourism sector by setting up
training institutions which would meet the human resource
requirements of the hospitality industry and would impart
training for key functional areas such as tourist guides,
receptionists, telephone operators, travel agents and other
ancillary positions. Goa holds immense potential for development
as a pharma hub which holds out employment opportunities for
educated and semi educated youth. The cybergram and cyberage
student schemes would aid in setting up a ready resource pool
for the IT industry. Coupled with the expansion of IT kiosks,
this concept would create increased employment opportunities
in the IT and IT education sectors. My government also intends
to increase the thrust on vocational and specialised training
which would expand opportunities for self employment. My government
had taken the lead in awarding works contracts to graduate
unemployed engineers under a scheme formulated for the Water
Resources Department. I intend to extend this scheme to the
Public Works and other Departments as well.
Sir, emerging specialised areas like IT and
biotech warrant recruitment of specialists. I intend to make
a beginning in this direction by introducing the concept of
a ten year short service contract with all pensionary benefits,
on an experimental basis in government. This scheme, analogous
to the Short Service Commission in defence forces would enable
government to use highly developed skills of specialists in
a meaningful way by introducing the concept of lateral entry.
Social sectors
Sir, as already mentioned by me, the Dayanand
Social Security Scheme has brought smiles to many faces. However,
even though more than 12000 persons have been benefited, many
more are eagerly waiting for their pension cheques. I intend
to complete the first phase of the scheme covering around
30000 persons before Diwali this year. This would be an appropriate
"Bhaubij" to the elderly and the widows from this
government with a humane face. I intend to start the second
phase of the scheme before Christmas. This would cover those
who are involved in unsecured self employment such as toddy
tappers, coconut pluckers, motorcycle pilots, rickshaw drivers,
truck drivers, bus drivers, taxi drivers, truck and bus cleaners,
bus conductors, fisherwomen, traditional fishermen, agricultural
landless labourer, Hamals and so on. Sufficient budget allocation
has been provided to ensure smooth operation of this scheme
which would subsume all other schemes by absorbing all beneficiaries.
Senior citizens are exposed to the ravages
of inflation and reduction in monetary value of their pension.
Since respect for the elderly is an integral part of our rich
tradition, my government has taken the lead in finalising
the senior citizens welfare policy which would be implemented
during the current year. To start with, I intend to extend
50 percent concession to all senior citizens for travel by
KTC buses. Adequate compensation would be provided to KTC
for this purpose. The "Yashashwini" scheme for aiding
women in distress has also been very well received.
Sir, it has been observed that education
in special schools for the few unfortunate physically and
mentally challenged students is increasingly becoming a costly
affair. These schools do not receive adequate financial help
as they are covered under normal grant-in-aid patterns applicable
to other schools. In order to ease the financial burden on
parents of such wards, I propose to facilitate creation of
a conducive atmosphere to make existing institutions affordable
and also for growth of new institutions. In order to achieve
this laudable social objective, a special policy for grants
to such institutes and students is in the final stages of
formulation and would be announced shortly thereby ensuring
that the benefits from the scheme accrue during the current
year.
Smart cards which have already been introduced
in the state, would go a long way in protecting the interests
of unorganised labour force in the State.
On account of court decisions, many kiosks
and gadas were displaced during 1998-99 rendering these self
employed persons belonging mostly to weaker sections of society
without a source of livelihood. Though some municipalities
have taken initiatives to rehabilitate the gada owners in
most of the cases they are still languishing due to the apathy
of those responsible for rehabilitation. During the current
year, a special drive to rehabilitate all these gada owners
would be undertaken under Deen Dayal Rozgar Yojana. The budget
provision for the department of social welfare has been increased
substantially to cater for the proposals detailed by me above.
The Disaster Management Fund proposed by
me in the last Budget is already in place. I have provided
a further amount of Rs.50 lakh towards the fund in this year’s
budget. However, we have been fortunate in not being called
upon to make use of the Fund too often. I hope this run of
good fortune would continue in times to come.
Agriculture and allied activities
Sir, during the past one year, my government
has strived to improve the distressful condition of the agricultural
community and has met with considerable success. Goa has the
distinction of being the first state in the country to provide
financial assistance in the form of cash subsidy to the sugarcane
growers. Sugarcane growers were paid Rs.100 per tonne as additional
support price besides provision of support to the sugar factory
to the extent of Rs.105 per tonne. The sugar factory would
be further supported and diversified to make it financially
viable. Support prices in the form of cash subsidy were also
introduced for arecanut and coconut growers. More than Rs.3
crore was disbursed as subsidy benefiting more than 3000 marginal
farmers. The scheme would continue during the current financial
year also. Support price for cashew nuts would be introduced
during the next season in line with arecanut, coconut and
sugarcane. Greater all-round support to farmers to help them
sustain their activities through innovative schemes including
attractive support price mechanism through cash subsidy would
be pursued.
In order to provide further stimulus to this
sector I intend to create green belts by selecting predominantly
agricultural villages and strengthening the infrastructure
facilities in the village. The package for the agricultural
sector would be incomplete if the issue of rural credit is
not tackled. To improve access to rural credit, I propose
to issue credit cards to all farmers by March 2003 wherein
credit, subject to a maximum limit, at substantially low rate
of interest will be made available to the marginal farmers.
Sale of horticultural produce would be encouraged by setting
up of market complexes at Banastarim, Mardol, Sanquelim and
Pale. Financial viability of these projects would be ensured
by incorporating a commercial element in their development.
The construction of these markets would be done through GSIDC
on BOOT/BOLT/Annuity basis.
NGO’s have played a pivotal role in water
harvesting and watershed development throughout the country.
I intend to promote involvement of NGOs for the upkeep and
maintenance of traditional water storage systems for irrigation
and creation of new storage points. Revamping of irrigational
facilities to increase their potential would be accorded top
priority.
By engaging retired Mamlatdars on contract,
my government has managed to clear more than 1200 additional
revenue cases during last year. We have filled in all the
existing vacancies of Mamlatdars/joint Mamlatdars and efforts
would be made to ensure that majority of the tenancy and mundkarial
cases would be cleared by end of 2004. Similarly we have appointed
special forest settlement officers to ensure early settlement
of Kumeri problem and I expect the same to start yielding
results by the end of this year. Fragmentation of land has
rendered agricultural land holdings uneconomic thereby increasing
rural unemployment. We intend to introduce proper legislation
to consolidate land holdings to make agriculture an economically
remunerative activity.
Recognising the importance of the fishing
community in the Goan economy, I had granted sales tax exemption
on diesel for fishing trawlers/boats in the last year’s Budget.
I intend to now enhance the concession from 9000 kilolitres
to 12000 kilolitres this year. Better marketing infrastructure
and communication facilities would also be provided to them.
Though Goa has been favourably endowed as far as nature’s
bounty is concerned, the fisher folk who venture out into
the sea often face serious hazards to life and livelihood.
In order to insulate them from such mishaps I intend to launch
an innovative insurance scheme which would entail the twin
components of physical protection and protection against economic
vagaries such as fish famine etc. I expect to have the scheme
in place by December 2002. Ramponkars and traditional fishermen
would be given facilities to ensure that they are able to
improve their income.
During last year the milk cess collected
on milk imported into the state has been substantial. The
amount collected has been utilised for increasing the quantum
of subsidy and number of beneficiaries under the ‘purchase
of milch animal’ scheme. However, the result from the scheme
is not to the extent desired and complaints of misuse and
harassment have been reported. On the lines of cash retention
price for agricultural produce, I intend to introduce a cash
subsidy of around Rs.0.50 per litre to milk producers who
sell milk through cooperatives, with a view to increasing
milk yields. The modalities of the scheme are being worked
out and the same would be put into operation on a trial basis
by August 2002. Depending on the success of the scheme, it
would replace ‘purchase of milch animal’ scheme.
Forest, Parks and Gardens and Environment
The social forestry scheme announced by
me last year is under finalisation. The Anna Fonte spring
in Margao and the beautification of the childrens’ park at
Campal have been completed. The work on setting up of other
recreational parks has also been partially completed. Funds
have been provided to ensure healthy "lungs" in
major cities in the form of parks and gardens. The oeceanarium
project which has been inordinately delayed beyond would be
expedited by retendering.
Unabated use of plastics has also been considerably
reduced. I intend to proactively pursue further reduction
in their use. During the year 2001-02 an educational programme
to educate children on the ill effects of throw away plastic
bags were undertaken in 100 schools. This, I think, is a good
step towards developing social awareness about such environmental
hazards. I intend to accelerate this awareness programme this
year on a larger scale. During the current year I propose
to initiate action based on the recommendations made in the
report on mining prepared by TERI. Government would also work
in close coordination with the mining sector for improving
the environmental conditions in the mining belt and expeditiously
undertake afforestation.
Long pending problems of Kumeri farming would
be taken up for settlement in time bound manner.
Development of eco tourism and adventure
tourism are key areas where funds have been provided. It is
proposed that the sites like Dudhsagar and Bondla wildlife
sanctuaries would be developed further to a sustainable level
to attract more tourist. More sites would be developed on
a similar pattern to encourage eco-tourism, adventure tourism
to ecologically sustainable levels.
Health
Though we have been justifiably proud of
the health parameters in the state which are much better than
the national average, the quality of health services to the
common man has deteriorated over the last few years nullifying
huge spending made by government in this sector. The only
remedy to this situation is a complete revamping of the system
wherein participation by private doctors at village level
would be encouraged for utilisation of government health infrastructure
thereby substantially improving spread and availability of
medical facilities in the remotest corners of the state. Selective
participation by specialists in government hospitals would
be encouraged to make expertise in all specialised areas available
at the district hospitals and Goa Medical College hospital.
The menace of malaria has been controlled
to a large extent. However, a tourist destination like Goa
can hardly afford to have cases of malaria. Necessary efforts,
clinical and otherwise would be taken on priority to achieve
this target.
The mediclaim facilities would be extended
to all types of treatment for citizens in the category whose
income level is below Rs.1.5 lakhs per annum. The monetary
amount of benefit admissible under mediclaim would also be
revised upward to Rs.5 lakhs and would include medicinal and
other incidental expenses.
My government would initiate construction
of new hospitals at Mapusa and Margao in addition to the existing
Asilo and Hospicio hospitals to reinforce the infrastructure
facilities in this sector. These works would be taken up through
the Goa State Infrastructure Development Corporation. A new
hospital with dialysis and kidney treatment facilities would
be set up at Canacona before end of the next year which would
fulfil a long standing demand of the people of that area.
Private participation would be invited for
setting up of superspeciality hospitals for which government
would ensure support to the extent of providing suitable land
and other infrastructural facilities. Improvement in facilities
at Goa Medical College would be undertaken. Computerisation
of GMC and district hospitals would be completed by the year
end to ensure improved service to patients.
Transport
During last year it was my endeavour to provide
a financial cushion to KTC by providing low interest loans
from GSIDC to the tune of Rs.15 crore, besides infusing a
direct subsidy of Rs.4 crore to the Corporation. KTC will
be strengthened further by improving fleet utilisation to
reduce losses and to act as a catalyst for efficacious transport
services. For this purpose help of professionals will be taken
and the organisational set up of KTC would be revamped to
achieve better utilisation of manpower, vehicles and all other
assets. All the properties of KTC including the bus stands
at Mapusa, Panaji and Margao would be built/upgraded on BOOT/BOLT
basis. New bus stands at Valpoi, Pale, Canacona and Pernem
would be constructed. The scheme of subsidy to replace old
vehicles operationalised last year was well received. However,
due to operational bottlenecks the same could not be implemented
to the desired extent. I propose to modify the scheme during
the current year to make it administratively convenient and
easy to operate.
I also propose to conduct an in depth study
to optimise the latent potential of the inland waterways network
and to ensure that the River Navigation Department is able
to operate its fleet efficiently and profitably. Alternative
applications of these routes to promote adventure tourism
would also be explored.
Motorcycle-taxis are a unique feature of
the transport sector. More than 8000 motorcycle owners or
‘pilots’ as they are affectionately called, face the uncertainties
of life without a social safety net. The government has set
this distortion right to a limited extent by declaring this
profession to be protected from social security angle and
covering them under the second phase of Dayanand Social Security
scheme. This, however, would hardly suffice and more needs
to be done. I am pleased to announce that this trade along
with rickshaws and yellow-black taxis would be recognised
as ‘small scale enterpreneur’ and would be eligible for 25%
subsidy on purchase of new vehicles. The detailed scheme would
be announced soon. This scheme would also detail out measures
to regulate the trade and mechanisms for advancing further
facilities.
Modernisation of various modes of transport
is an essential pre-requisite to make the wheels of the economy
move faster. A feasibility study is being conducted for introduction
of Skybus routes between Panaji and Mapusa. The scheme would
be implemented on a BOOT/BOLT basis after an assessment of
its technical and financial viability.
Industry
As promised by me last year, a major portion
of the backlog in industrial subsidies committed but undisbursed
by earlier governments have been cleared by my government.
The cost of capital has been brought down considerably by
reducing the interest rate on loans given by EDC/IDC. My government
is in favour of encouraging industries which are environment
friendly and employment generating like pharmaceuticals, software,
precision engineering, biotechnology and so on. The fiscal
benefits given to the industry would be oriented towards attracting
long-term investment and discouraging fly-by-night operators.
A greater synergy needs to be established
between the industry and the agriculture sector. Keeping this
in view, my government proposes to set up professional groups
which will facilitate and expedite commercial value addition
to agro based products. Export oriented activities like floriculture,
and horticulture would be promoted in the state.
The draft industrial policy which was circulated
for comments has received an overwhelming response from trade
and industry. Sir, the sustained efforts made by my government
for the past one and a half year has generated an extremely
positive perception in the industrial sector all over the
country about Goa. However, I do realise that the presence
of this "feel good" factor is merely the foundation
on which the superstructure has to be built. With a view to
attract the right kind of environment friendly industries
to the state I propose the following time bound programme
to generate additional investments.
Since conceptual parameters have to be clearly
spelt out before embarking on a particular course of action,
I intend to release the final Industrial Policy document by
August 2002. This policy would detail and classify industries
under the green, orange and red categories without any ambiguity.
This focussed approach would be carried further by creating
a new Board for Investment and Export Import Promotion which
would subsume the functions presently carried out by the HPCCs
on industries and tourism respectively. In keeping with the
emerging broader functions of the Industries Department I
propose to rename the Department as The Department of Industries,
Trade and Commerce.
I intend to continue the existing subsidy
to small scale industries only to the extent of 25 percent
subject to an investment ceiling of Rs.25 lakhs. This subsidy
would be applicable only to industries located in the talukas
of Pernem, Bicholim, Sattari Sanguem, Quepem and Canacona
and are covered under the green list. Green category industries
located outside these talukas would be given a 15 percent
subsidy subject to an investment ceiling of Rs.15 lakhs. Industries
under the orange category can set up units but would not be
covered under any of the subsidy schemes unless specifically
indicated in the scheme. Industries under the red category
would not be permitted in the state. I would strive to release
the list of industries under the green category, to the extent
possible, by July 2002. Ambiguity regarding status of categorisation
of a particular industry would be clarified by the Investment
Board within a time frame of 45 days. I have made a provision
of Rs.5 crore to clear the backlog of pending subsidies. All
cases which have been approved by 31st March 2002,
shall be paid during the current year. Subsidy amounts of
less than Rs.5 lakhs shall be disbursed on priority.
In the past, steep water tariffs had raised
industrial costs. I had made a small beginning to remedy the
situation by reducing the water tariff to Rs.20 per cubic
metre for all units located in industrial estates. I now propose
to extend this benefit to all industries including those registered
under the Tourism Trade Act which were covered under the highest
slab with effect from 1st August 2002. However,
the units enjoying lesser tariff will continue to be covered
under the same.
The GIDC shall undertake improvement of infrastructure
within all industrial estates by 31st March,2003.
The infrastructural improvement would include better roads,
increased transport connectivity including night time transportation
and establishment of fire stations. Residential plots for
housing industrial workers shall be allotted to the respective
industrial units.
Sir, I do not need to emphasise that government
and industry have to work in close coordination to take the
state on a high growth curve. I intend to take the lead in
this direction by giving representation to professionals from
industry in the functioning of important government corporations
like EDC, GIDC, GSIDC and Pollution Control Board. Industry
would also be given representation on various other important
government bodies to ensure better coordination.
The problem of excessive charges levied by
Pollution Control Board would be resolved by increasing the
period of certification to 5 years. My government would also
encourage joint delegations of government and industry to
important industrial centres within and outside the country
to study and implement efficacious industrial strategies.
Tangible results would also be achieved by marketing of Goa
as an industrial destination through Goa Investment Shows.
Sir, the iron ore export industry has borne
the brunt of recessionary conditions. I propose to alleviate
the situation by reducing cargo related port dues for bulk
cargos as follows:
|
Category
|
Existing
|
Proposed
|
|
1. Vessel upto 5999 DWT
|
Rs.4 per tonne
|
Rs.3 per tonne
|
|
2. Vessel from 60000 DWT upto 99999
DWT
|
Rs4.50 per tonne
|
Rs.3.50 per tonne
|
|
3.Vessel for and above one lakh DWT
|
Rs.6 per tonne
|
Rs.4 per tonne
|
|
4. Trans shippers and all allied crafts
used for loading/unloading
|
Rs.1 per tonne
|
Rs.0.20 per tonne
|
The sugar factory would be provided with
a capital infusion of Rs.200 lakhs to enable it to diversify
into allied activities. Sir, as you are aware, the industrial
power tariff was reduced substantially in April 2002. However,
as I have mentioned earlier, my government believes in promoting
eco friendly sources of power as also captive power generation.
I intend to provide a boost to captive power generation by
pronouncing a power banking policy by July 2002 wherein power
during off peak hours could be delivered to the state grid
and drawn subsequently.
My government recognises the importance of
environment friendly units which consume industrial raw material
which are waste by- products of certain other activities.
Such units which remove pollutants and save from harmful environmental
effects deserve to be supported in every manner. The problem
of mining waste has been documented from time to time and
is a major cause for concern. I, therefor propose to grant
special benefits in power tariffs and subsidies to those units
which consume at least 50 percent of its raw material from
mining and industrial waste such as mining rejects, slag from
pig iron plants, blast furnaces, fly ash from thermal plants
and any other specific pollutant waste product. The details
of such benefits would be spelt out separately.
The proposed industrial policy would also
incorporate a revival scheme for sick industrial units. Improvement
and complete utilisation of existing industrial estates would
be undertaken before setting up any new industrial estates.
Land available at Keri in Ponda taluka would be put to effective
use by setting up an ethnic village and film city thereby
ensuring ample employment opportunities to locals.
Irrigation
The progress of the Tillari Irrigation project
has been significant. The right bank canal has been made operational
during the last financial year. The backlog of payments created
by earlier regimes which were due to Maharashtra on account
of this project have been cleared by my government. Total
expenditure on the Tillari Irrigation project since my government
came to power is about Rs.130 crore of which Rs.97.5 crore
are direct payments to Maharashtra government. During the
current year we propose to ensure proper support to the project
by providing adequate funds thereby ensuring its timely completion.
A major cause of concern in the irrigation
sector has been the low operational efficiency of small, medium
and lift irrigation schemes functional across the state I
intend to undertake a comprehensive review of all such irrigation
schemes in order to substantially augment the irrigation potential
of the state.
I would be failing in my duty if I do not
commend the exemplary achievement of the Water Resources Department
in completing the Sal-Amthane project in a record time of
less than 30 days as against the normal completion of 300
days. I hope that the Department would keep up this performance
in future and be an example to the others.
A Rs.15 crore project for cleaning and beautification
of St. Inez nullah which is an eyesore for the capital city
of Panaji is under consideration of Government of India. Similar
exercise would be undertaken to clean and develop such nullahs
at Karmali and Colva which have become dirty due to stagnation
of water and flow of sewage into them. After completion of
the drainage system to prevent flooding at Miramar the project
of flood control at Mala would be taken up on priority. Similar
projects would be undertaken for other major cities. The work
is expected to cost around Rs.5 crore and adequate provision
has been made in the budget.
Civic Amenities
Sir, public utilities are the most crucial
interface between the government and the citizen. Provision
and maintenance of quality public utilities like roads, water
supply, power and sewage and sewerage system at affordable
prices is one of the primary responsibilities of any government.
These areas have been given utmost importance by my government
and the results have been encouraging.
Over the last one and a half year, travelling
on the roads of Goa has become much smoother and safer. In
the current financial year I propose to pursue infrastructural
upgradation at a faster pace.
The water supply augmentation schemes of
Opa, Assanora and Sanquelim would be completed by the end
of this year. The Chandel project in Pernem is nearing completion
while the extended Dabos water supply scheme would be completed
by March 2003. The responsiveness in governance was amply
brought out by the speed with which the Amthane water supply
scheme was executed in less than 30 days to cope up with the
problem of water scarcity faced in the whole of Bardez and
Bicholim talukas during April-May 2002. Water supply scheme
in Canacona Taluka including the Shristhal Panchayat would
also be taken up on priority. Replacement of old and corroded
pipelines are also being taken up to ensure uninterrupted
water supply while replacement of pipelines in Panaji, Ponda
and Margao is almost complete. Works in Vasco and Mapusa would
be taken up shortly.
The Sewage Infrastructure Development Corporation
has made considerable headway in improvement of the sewerage
system in the state. I am happy to announce that the Government
of India has accorded administrative approval for setting
up of an additional 10 MLD modern sewage treatment plant at
Tonca in Panaji. Of the total estimated cost of Rs.14.10 crore,
Rs.9.87 crore would be provided by Government of India as
grants and the balance would be made available from the state
budget. Necessary provisions have already been made in this
respect.
As already indicated, construction of bridges
are being undertaken through Infrastructure Development Corporation
through external funding. Besides these bridges, the Amona-Tonca
bridge is progressing very fast and the Siolim-chopdem bridge
would be ready for use before end of this month. I would like
to assure all the traders of Siolim that their interest would
be suitably protected while keeping the connectivity aspect
in mind.
Our beautiful state is at an advanced stage
of urban decay due to prolonged neglect. Even though almost
eight times the normal grants were provided to the municipalities
last year, drastic problems faced by these cities require
drastic remedies. In order to tackle the problem of growing
urbanization, I intend to start the process of preparation
of a five year development plan to be executed through the
State Urban Development Agency. The five year plan envisages
construction of markets at selected places in major cities,
truck terminus and similar other infrastructural activities
to improve the environment of urban areas while simultaneously
generating forward linkages for rural areas thereby creating
a positive spin-off for rural employment. To start with, Margao,
Panaji, Vasco, Mapusa, Bicholim, Canacona and Curchorem will
be taken up under the plan. During this year, Rs.5 crore each
would be provided for Margao and Panaji, Rs.3.5 crore each
to Vasco and Mapusa and Rs.1 crore each for Bicholim, Canacona
and Curchorem. The total allocation this year would thus be
Rs.20 crore and the allocation over the five year period would
be to the tune of Rs.50 crore each for Panaji and Margao,
Rs.40 crore each for Vasco and Mapusa and Rs.10 crore each
for Bicholim, Canacona, Curchorem and Rs.5 crore each for
rest of the municipalities. We expect additionalities to the
above amount under various urban development schemes of Government
of India such as the Slum Development Scheme and the Environmental
Improvement Scheme. This entire allocation would be over and
above the standard grants provided to the municipalities.
Ponda has been proposed to be developed as a cultural city
and a proposal to this effect has already been submitted to
Government of India and the same is expected to be approved
during the current financial year.
Computerisation of forms I and XIV were completed
on 24th October 2001 and inaugurated at the hands
of Shri Venkaiah Naidu, Honourable Union Minister for rural
development. The computerisation of cadastral map of Tiswadi
and property cards in Panaji, which were under progress, have
been completed. The process of computerisation of cadastral
maps and property cards in Mapusa, Vasco, Margao shall be
completed within a month. Computerisation of the revenue department
at a cost of Rs.4 crore is in progress and is expected to
be completed before March 2003. A comprehensive resurvey of
the state with help of GPS is being undertaken. Extensive
computerisation of the subregistrar offices is also on the
anvil. Sir, it is my fervent hope that these steps would go
a long way in helping to resolve land related disputes as
also ensuring complete stoppage to manipulation in land records.
A modern, efficient land management inventory system would
substantially, in the long run, reduce the quantum of cases
in revenue courts.
The AAI has already approved the upgradation
of the Dabolim Airport. This work would be taken up expeditiously.
In view of the increasing tourist inflow in the state, the
airport at Mopa also needs to be constructed simultaneously.
Initial steps have already been taken in this direction.
Power and non conventional sources of
energy
Sir, the performance of the power sector
is another shining example of what good governance can achieve.
The turnaround from a huge loss making entity to a profit
making one, within a period of one and a half years is in
large measure due to the painstaking efforts of my Power Minister.
The magnitude of the turnaround can be gauged from the fact
that we are now in a position to even lower the tariff and
earn more revenues. The cost of power has been brought down
substantially after negotiations on the PPA with the Reliance
Salgaonkar Power Plant. The trading of surplus power has generated
additional revenue to the tune of Rs.6 crore every month for
the state.
The Accelerated Power Development Programme
with a 50% contribution from Government of India is poised
to take off during the current financial year. An amount of
Rs.9 crore has already been received by the state for this
purpose. A total project size of Rs.120 crore under APDP has
been earmarked for North Goa of which Rs.60 crore is approved
for the current year. A similar project for South Goa under
this scheme is likely to be approved soon. The transmission
and distribution losses have been brought down from a whopping
38 percent to 18 percent. With the scheme of cent percent
electronic metering under way, I am confident of bringing
it down further. The work on 400 KV Colvale substation for
has already commenced and the same is likely to be commissioned
by 15th August, 2002, thereby giving us independence
from Maharashtra as far as reliance on the power front is
concerned, much ahead of the original schedule of March 2003.
This will be synergize with the 400 KV transmission line from
Kolhapur to Colvale and shall also be complemented by necessary
upgradation and interlinking between Colvale, Tivim and other
places.
Government has already initiated the process
of exploring eco friendly options for generating power through
non conventional sources of energy. This has been implemented
in the official residence of the Chief Minister, street lights
on Dayanand Bandodkar Marg, joggers’ park at Altinho and Dona
Paula jetty and would be extended in phases, to more areas
during the current year. Energy parks based on environment
friendly generation of power would be set up which would illustrate
to children the importance of conservation of energy and methods
of generation of eco friendly sources of energy. Wind and
solar energy policy would be declared to encourage generation
in these fields. The state has also awarded a consultancy
assignment to NHPC for surveying and detailing the hydro electric
potential of the state which would be exploited for generation
as soon as the feasibility is established.
Law and Order, Judiciary and Administration
Sir, the perceptible improvement in the performance
of the police force is a direct result of the steps taken
by my government to improve the morale and service conditions
of the force. Training facilities at the training school in
Valpoi have been enhanced. Old vehicles used the force have
been replaced by newer and modern ones. Efforts have been
made to improve the living conditions of the police force
in barracks and police quarters by renovating the buildings
and adding necessary conveniences. The long pending demand
of the police department of setting up of a fingerprint bureau
in the state has been fulfilled. The acute shortage in manpower
has been dealt with by filling up of long pending vacancies
and promotions. Efforts made in these directions would be
pursued further by my government during this year. In order
to further professionalise the police force, I intend to revamp
the organisational set-up of the tourist police. I also propose
to impart training to police personnel to develop a healthy
and friendly citizen-police interface and also to equip police
personnel to facilitate tourists visiting the state. Non political
citizens’ committees would be set up to give feedback on police
functioning. I intend to constitute a special cell for implementation
of special Acts and specific areas such as Defacement of Property,
Anti-Tobacco, Pollution Control and Economic Offences. Efficacious
crime prevention and detection is possible only when a comprehensive,
computerised online criminal databank is prepared which is
interlinked to all police stations. Computerisation of police
stations is already in progress. Construction of police station
buildings at Vasco and Harbour shall be completed by March
2003. New police station buildings at Mapusa, Colva and Anjuna
shall be completed by December 2002. In addition, I also propose
to set up police outposts at Sirsaim and New Vaddem. I intend
to formulate a special housing scheme for police personnel
in the new housing policy which would be announced shortly.
The setting up of fast track courts to expeditiously
clear the backlog of judicial cases is being implemented in
the state. The NRI cell proposed by me last year is already
in operation.
In order to deal with corruption in public
offices effectively a law on the lines of Lokayukta would
be introduced in the next session. All documents including
Assets statements would be public document. Necessary amendment
in the Information Act would be made to improve transparency
in public dealings. The postings in the Vigilance cell would
be protected by delinking the same from the parent department.
Procedural improvements to reduce bottlenecks in public interface
with departments would be undertaken. Citizens’ charter would
be implemented rigorously. Public grievance cell would be
made fully operational and result oriented.
Housing
Shelter is a cherished dream of every man
and woman and more so for the less privileged. Realising that
growth in this sector would impart a boost to the economy
my government had made a beginning last year by reducing the
interest charged on housing loans to government servants.
I had promised to extend the scheme to Grant In Aid institutes
which would be implemented during the current year. The delay
caused in implementation of the scheme was due to the requirement
of changes to be made in the rules and regulations. The process
is now expected to be completed by September 2002. My government
intends to provide a clear direction to the housing sector
through the housing policy which would be declared by August
2002. The policy, besides according fiscal incentives, would
encourage development of satellite townships in a well planned
manner and would include enactment of Apartment Act on the
lines of a similar Act in Maharashtra to protect the interest
of flat owners. Exorbitant rates of stamp duty has been one
of the limiting factors in growth of the sector and has also
encouraged adoption of wrong practices by builders thereby
causing problems to house owners. I intend to address this
problem in the proposed housing policy.The policy would also
include allotment of small plots to homeless Goans. The policy
would also include a mechanism by which vacant apartments
could be safely leased out without fear of getting vacated
on time outside the purview of Rent Control Act. Compulsory
maintenance of housing societies and rehabilitation of slum
areas on priority will also form a part of this policy. The
Rehabilitation Board would be strengthened and made operational
to implement the policy of the government. Rehabilitation
of slums in Margao, Panaji, Vasco, Bandora near Ponda, Kamrabhat
in Panaji and Merces would be undertaken during the year with
a view to upgrade the sanitational and other civic standards
in these slums.
Local Self Government
Sir, my government believes that meaningful
progress of the state can be achieved by improving the financial
condition of the local bodies as also by giving them substantial
administrative powers. In tune with this line of thinking,
financial allocations to municipalities and panchayats have
been increased manifold. In the years to come. These allocations
would be further enhanced in coming years. Necessary legislative
amendments to the Municipality and Panchayat Act would be
made to provide more teeth to the administrative powers of
the local authorities. As promised, I have provided funds
for the purpose of payment of salaries and allowances to Panchayat
and Zilla Panchayat members. However, actual payments can
be made only after necessary amendments to the Act are carried
out during the next session of the Assembly. An additional
allocation of Rs.10 crore has been made for special grants
to those panchayats whose incomes are inadequate. A detailed
scheme for the same is under formulation and would be declared
very soon. Zilla Panchayats would be strengthened by providing
adequate administrative and technical staff. Various allocations
to zilla panchayats would be effectively used by earmarking
few schemes exclusively for them.
The cybergram concept to bring e-governance
to rural doorsteps in villages has been implemented on a trial
basis in Shiroda through the Rural Development Agency. This
concept would be extended to all panchayats by March 2003.
Information
Technology
Overall recessionary conditions in the information
technology sector have been responsible for lack of major
investment in the sector in the state in spite of substantial
progress on other fronts. Since the sector holds immense potential
for generating increased employment opportunities in tune
with the aptitude of the potential workforce available in
Goa, I intend to focus on this sector in a big way during
the current year. An initial budgetary provision of Rs.5 crore
has been made and additional amounts would be made available
as the need arises. I propose to establish linkages between
creation of a cyber-savvy resource pool of employable youth
and encouragement of IT sector industries. A comprehensive
IT policy document would be tabled in the next session of
the Legislative Assembly. At this stage, I would only like
to indicate that the issues of subsidy, incentives on connectivity,
lease rentals, exemptions and concessions from stamp duty,
entry tax, sales tax and exemptions on sales tax on fuel required
for captive power generation and zoning requirements would
be addressed in the proposed policy.
E-Governance
Sir, my government is fully conscious of
the immense benefits which would accrue from implementation
of e-governance specially in areas of public interface. This
benefit has been amply demonstrated through the computerisation
of land records coupled with setting up of "Mahiti Ghars"
at Panjim and Margao which have made delays and corruption
in obtaining certified copies of land records a thing of the
past. One of the major reasons of e-governance failing to
pick up the desired momentum has been its inability to ensure
quick remedies to the common man. I intend to correct this
aberration by initiating a series of steps like issue of smart
cards to labourers, setting up of cybergrams in all panchayats,
cadastral mapping and property cards for the entire state
of which the cards for Panaji are ready. Cards for Mapusa,
Vasco and Margao which would be completed by July, 2002. Computerisation
of key departments like revenue, electricity, sales tax, excise,
transport and police would be completed by March 2003. This
would obviate the need for a citizen to physically visit these
offices as on line filling up of application forms and renewals
would be possible. Government servants would be equipped with
computer skills to enable them to handle e-governance with
ease. Necessary for e-governance have been separately provided
to individual departments.
Tax And Non Tax Revenues
Sir, having detailed my expenditure proposals
I now turn to the revenue generation aspects.
Sales Tax, Entry
Tax, Luxury and Entertainment Tax
Sir, the rationalisation of the tax structure
in respect of sales tax, luxury tax, entertainment tax and
entry tax made by me in the last Budget, has shown positive
results as can be discerned from the revenue collections.
Hence, no major changes in these structures are warranted
this year. This stability in tax rate structure is also warranted
on account of the transition to the Value Added Tax system
with effect from 1st April, 2003.
However, as I have mentioned earlier, in
order to give a further boost to the tourism industry for
its short-term revival and long term development, certain
modifications are necessary. With this objective in mind,
I propose to reduce the highest slab of luxury tax on accommodation
from the existing 12 percent to 8 percent. Similarly, the
rate for the other slab which is 8 percent at present, is
proposed to be reduced to 5 percent. Further, the monsoon
package of reduced taxation at the rate of 50 percent of the
normal tax rate would be extended from the existing three
month period to a period of four months i.e. from 15th
June to 14th October. However, I would also like
to mention here that I expect the hospitality industry to
reciprocate my endeavour of lowering the tax rates by timely
payment of taxes. I propose to ensure proper compliance by
extending the facility of the monsoon package only to those
hotels which make timely payments for the months concerned.
In addition, to ameliorate the grievances of some of the city
hotels regarding rate of tax on accommodation provided for
commercial purposes, I propose to levy luxury tax at the standard
rate applicable to the hotel in which such accommodation is
provided instead of the earlier stipulated minimum amount
of Rs.250 per day.
Sir, the brave soldiers of our country are
doing us proud by fighting valiantly at the border. As a small
gesture of gratitude towards their gallant contribution, I
propose to extend to the members of armed forces stationed
in Goa, a concessional rate of 2 percent for purchase of motor
vehicles subject to certain conditions. As a complementary
step to the one taken on the luxury tax front to give a boost
to the tourism sector, I intend to bring down the highest
slab of sales tax on cooked food and non alcoholic beverages
from the existing rate of 10 percent to 8 percent. The rate
of tax on LPG for non domestic use which is 20 percent at
present, is proposed to be reduced to 8 percent, thereby giving
further relief to the hotel industry.
Sir, the increased stresses and strains of
modern living has resulted in the increase of various types
of lifestyle and stress related diseases. Sir, though conventional
wisdom dictates that prevention is better than cure, I can
only intervene and help in making the process of cure less
burdensome on the pocket. In pursuance of my intervention,
I propose to review the list of life saving drugs which are
at present exempted under entry 64 of the second schedule
appended to the Sales Tax Act, and include drugs like insulin
in all forms therein.
As I have already mentioned earlier, the
quota of sales tax exemption on diesel for fishing cooperative
societies would be enhanced to 12000 kilolitres per year from
the existing level of 9000 kilolitres. I also propose to reduce
the rate of taxation on horticultural products from the existing
rate of 3 percent to 2 percent with a view to giving an impetus
to the horticulture and cooepration sectors. Moulded furniture
is widely purchased by the middle class. I intend to take
cognizance this economic reality by reducing the rate of taxation
to 8 percent from the existing rate of 12 percent. "Bullion
and Specie" attracts a rate of 1 percent at present.
Since in some of the neighbouring states the tax rate levied
is lower than 1 percent, this results in diversion of trade
due to the cost factor. To give relief to the traders and
the local population I propose to bring down the rate to 0.50
percent. I also propose to tax catering services making supplies
of cooked food and non alcoholic beverages for marriage parties
etc. at a reduced rate of 2 percent from the existing rate
of 8 percent. I am fully aware of the apprehension in the
minds of industries currently availing exemption of sales
tax, on account of recent amendment to the Central Sales Tax
Act. This amendment was necessary for preparation to switch
over to the VAT system and has been recommended by the Empowered
Committee of State Finance Ministers. In order to mitigate
the hardships faced by eligible industrial units, I propose
to increase the quantum of benefit under the "Goa Sales
Tax Deferment-cum-Net Present Value Compulsory Payment Scheme,
2002" to 75 percent of the amount of tax collected, in
place of the existing 50 percent. This concession, in conjunction
with reduced rate of tax of 1.5 percent on industrial inputs
as against 2 percent during the previous year, I believe,
will ease the anticipated hardship in the industrial sector
on this count. I have received a number of representations
from members of trade against registration renewal charges
which was introduced last year to partly offset the losses
on account of withdrawal of additional tax except on petroleum
products. I intend to take cognizance of these representations
and propose to reduce the renewal charges by 25 percent for
the year 2002-03. However, to make good the loss in revenue,
partially, I propose to enhance the rate of surcharge on sales
tax from 5 percent to 10 percent. This would entail a revenue
loss of Rs.70 lakhs. In view of representations and apprehensions
of trade, members and sales tax practitioners arising out
of compulsory tax audits, I propose to waive this requirement
completely with retrospective effect. In the list of IT products,
I propose to add "Automatic Teller Machines" only
for benefit of lower rate of tax under the Central Sales Tax
Act, subject, however, to lately amended provisions of the
said Act.
Since the transition to the VAT system is
scheduled for April 2003, entry tax would continue till March
2003. I propose to modify the rate structure under the Goa
Tax On Entry of Goods Act, 2000 in relation to small scale
industries. The exemption presently available to small scale
industries shall be restricted to those having an annual gross
turnover below Rs.20 crore during the previous year. However,
small scale industries liable for entry tax on their raw material,
packing material, and plant and machinery shall get set off
of the amount of entry tax from local sales tax payable by
the industry on goods manufactured, processed or assembled.
Further, I propose to modify the rates of entry tax on the
below mentioned items as follows:
| |
Items
|
Existing Rate
|
Proposed Rate
|
|
1
|
Spirit, Alcohol, Malt, Hops, Essences and Additives
required in manufacturing of IMFL, Beer, Wine, etc.
|
Nil
|
5 percent
|
|
2
|
Cocoa, Cocoa Butter, Cocoa Liquor, Cocoa Beans, Glucose
in any form, Vegetable Fat
|
5 percent
|
2 percent
|
|
3
|
Corrugated Board Boxes, Card Board Boxes, Paper Boxes,
Folding Cartons
|
2 percent
|
4 percent
|
|
4
|
Plastic Granules, Plastic Chips or liquid including
PVC, LDPE, SDPE, Polypropylene, LLDPE, Nylons, Polyterences
and Poly carbonates
|
0.3 percent
|
1 percent
|
The marginal enhancement of the rate at item
numbers 3 and 4 above are necessary for giving protection
to the local industrial units manufacturing packing materials
which are not getting enough business on account of import
of goods from outside the state by industries requiring them.
Streamlining of the Sales Tax and Excise
Departments would be a top priority and would entail providing
spacious office premises to enhance operational efficiency.
Extensive computerisation of the Departments would also be
taken up. The fast track assessment wards have already been
created which would be made fully operational from this year.
Sir, though the implementation of VAT has been delayed by
a year, Goa is set to switch over to that system at a very
short notice.
Excise Duties
As in the case of sales and entertainment
tax, the policy changes announced in the last Budget have
considerably boosted the revenue earned from excise duties.
Realisation of excise duty in the year 2001-02, has exceeded
the budgeted figures. Sir, though liquor is often associated
with instability, the excise policy pursued by me has remained
as stable as my government. I do not intend to make any major
changes in the policy, as, I am sure that the consistency
and stability of the policy, rather than increased rates,
would ensure better collection of revenues.
Non Tax Revenues
Sir, on the non-tax revenue front I have
achieved considerable success in diversifying the user charges.
The revenues from sectors like fisheries and animal husbandry
have shown considerable increase. I have already dealt with
the impressive performance of the electricity sector earlier
in my speech. However, a lot still remains to be done in the
area of water supply and sanitation, medical and public health,
transport etc. Quality regulatory and monitoring systems would
increase the revenue realisation from these services appreciably.
Proper management of assets of State Owned
Corporations like KTC, Housing Board etc., I believe, would
result in minimising the subsidy, if not ensuring a decent
rate of return on the investment made in these corporations
by the government. All out efforts would be made this year
to ensure that none of these corporations need to be bailed
out in the next year’s budget. During the last forty years,
a huge amount has been spent by government to acquire properties
at various places in the state. Many of them have not been
mutated in the name of government and are lying idle or are
not being utilised properly. An effort was already initiated
by me last year to prepare systematic inventory of all such
properties and their use. However, keeping in view, the extent
and span of these assets, I propose to take help of professional
agencies to complete this exercise during the current year
and also intend to generate an additional revenue of Rs.20
crore, over and above the budgeted amount, by putting them
to proper use.
Controlling wasteful administrative expenditure
through the use of time management studies would also be undertaken
by my government in the current year.
