GOA BUDGET 2003

Presented by Chief Minister Manohar Parrikar

on 25 March 2003

Budget 2000 | Budget 2001 | Budget 2002

Employment |Education | Tourism | Industry | Infrastructure

VAT, ST, & Entry Tax | Excise | Non-Tax Revenue

Mr. Speaker Sir,

I rise to present the Budget for the year 2003-04. Sir, this is my third successive budget and I am glad to state that I have been able to deliver most of the promises I have made to the people of my state. It gives me immense satisfaction when I see that during the years past, policies pursued by my government have made Goa a better place to live in for a few more of my fellow citizens.

With a resolve to continue to do so, I turn to the performance sheet of my government during the year 2002-03.

REVISED ESTIMATES 2002-03

Sir, a healthy balance sheet is a prerequisite to any attempt towards aspiring for sustained growth and development of the State. From the day my government took over, it has been our constant endeavour to put the financial position of the State back on rails. I am happy to state that I have achieved considerable success in this direction. The revenue receipts of the State which registered a handsome increase during 2001-02 continued to do so in this year. From an amount of Rs.458.49 crore during 1999-2000 tax revenues have increased to Rs.569.90 crore during the year 2001-02. As per the trends available, the figure is likely to reach Rs.727.92 crore during the year 2002-03. Sir, this amounts to an increase of almost 58% during a period of three years, which, by any standards, is no mean an achievement. In a year of overall economic recession in which taxes/duties on petroleum products and various other items were brought down, the increase in collection speaks volumes about my government's commitment to transparent and corruption free governance. Sir, the performance is even more spectacular on the non-tax front. The net receipts from this source during the year 1999-2000 stood at Rs.119.28 crore. During the year 2001-02, it increased to Rs.194.13 crore. In the current year, I expect the figure to touch Rs.361.51 crore. Sir, this amounts to a phenomenal increase of more than 200 percent in just three years! The agreement with Power Trading Corporation (PTC) for sale of surplus power and successful re-negotiation of the power purchase agreement with Reliance Salgaoncar Power Corporation Limited (RSPCL) are significantly responsible for this stupendous achievement. The loss in tax revenue due to revised PPA, of around Rs.18 crore, was made up by a gain of over Rs.40 crore accrued on account of lower cost of power purchase. Sir, Goa is, perhaps, the only state in the country where tariff has been reduced by 7 percent during last three years. Thus, the entire increase in revenues has been brought about in spite of reducing burden on the common by resorting to ingenious methods.

However, due to financial implications of implementation of the Voluntary Retirement Scheme and fulfilling various pending demands of the government staff and implementation of Part B scales to teachers there has been considerable rise in revenue expenditure of the State. Sir, in spite of this I have been able to substantially enhance developmental expenditure for various schemes. The budgetary allocations to various departments, which were considerably higher than what were provided in the recent past, have been largely met. Non-plan expenditure on salaries and others have been controlled. Plan expenditure has increased consistently over the last two years from Rs.251.69 crore in 1999-2000 to Rs.388.91 crore in 2001-02. The plan size is expected to be around Rs. 593 crore in the current year. This increase has been achieved with a much lower proportion of increase in borrowings. The net fiscal deficit, which is a broad indicator of loans taken for defraying current expenditure has increased marginally from Rs.412.86 crore in 2000-01 to Rs.423.53 crore in 2001-02. In the current year, the figure as per the revised estimates, stands at Rs.415.27 crore. As a percentage of Gross State Domestic Product, it has reduced from 5.31 percent in 2000-01 to 4.04 percent in 2002-03(RE). Sir, during the current year, the state faced an unprecedented situation where the net withdrawals from GPF were more than the receipts till the month of October. This was a result of the heavy retirement of government servants on superanuation and VRS. While putting some strain of the cash management of the state, Sir, this turned out to be a blessing in disguise as it would lead to a decrease in net loans to the state. As a result, at the actuals stage, I expect the fiscal deficit for the year 2002-03 to be lower than what has been projected at the revised estimate stage. The shortfall in capital expenditure at the revised estimate stage is primarily due to non spending on Tillari Irrigation Project which is currently under review. Accordingly, the equivalent AIBP share which was given as loans by the Government of India has been surrendered. The only area of concern has been the revenue deficit which has increased marginally from Rs.88.61 crore as projected for the current year to Rs.104.48 crore at the revised estimate stage. This is primarily due to the legacy of committed but unfulfilled financial promises of the previous governments. However, it is still a considerable improvement over Rs.226.01 crore in 2000-01 and Rs.228.50 crore in 2001-02. With the debt swapping mechanism initiated by Government of India to retire high cost debt as also the likely reduction in salaries and other establishment expenditure due to implementation of VRS and other measures taken by my government, I intend to eliminate revenue deficit completely by the year 2004-05. The detailed sector wise performance of my government for the year 2002-03 has been presented in the Economic Survey, which I have already laid on the table of the House.

BUDGET PROPOSALS 2003-04

Employment

Sir, Goa has performed commendably in terms of various social and economic parameters. We have surpassed all the objectives set in this respect in the Tenth FiveYear Plan. We need to keep up this momentum and ensure that we not only stay ahead, but also achieve the standards of a developed nation by 2010. Existence of significant number of unemployed youth can be a stumbling block in achieving this goal. I have made sincere efforts to address this problem in last two years and I am happy to state that my efforts have borne fruits to a considerable extent. In furtherance of my vision of minimising unemployment, I intend to pursue a three pronged strategy of retention of employment in traditional sectors such as agriculture and allied activities by making them remunerative, creation of large scale employment by providing incentives to industries to employ people on a sustainable basis, and encouragement to self employment. With all these, I propose to address the unemployment problem of more than 25000 youths in the next three years.

Sir, the importance of agriculture as a source of gainful employment is declining over the years on account of various factors including unremunerative prices and lack of proper support systems for storage and marketing. In order to address this problem, I intend to set up "Krishi ghars" which will act as collection, sorting, storage and selling centres for agriculture and horticulture products at various locations covering all talukas in the State. In order to develop a price support mechanism, purchase rates for specified agricultural and horticultural produce will be declared and the same will be procured at these centres. The scheme will take into account factors like transportation, spoilage, storing costs, etc. in the initial phase. A chilling unit of around 5 tonne capacity will be set up at the new market in Panaji for sorting and storage of the products. A larger unit of 25 tonne capacity will be planned during the year for subsequent expansion of the scheme. Retail outlets will be set up through which the goods procured will be sold to government agencies and in the open market thereby eliminating the middleman to the benefit of both the farmers and the consumers. The "krushi ghars" will also be developed as centres of assistance to the farmers to improve the yield and quality of the produce through improved technology and better quality seeds. Goa State Horticulture Corporation shall be the nodal agency to implement the scheme with the active involvement of agriculture marketing cooperatives and NGOs in this sector. A budget provision of Rs.3 crore has been made exclusively for implementation of this scheme. I have also made a provision of Rs.1 crore for setting up of an agricultural estate by Horticulture Corporation to provide gainful employment to landless unemployed youth.
Sir, agriculture has direct forward and backward linkages to activities like dairy farming. To give a boost to employment generation in dairy farming, the existing "one to ten animal" scheme will be revamped to eliminate arbitrariness, corruption and bottlenecks in the system. In order to attract rural youth towards this activity, the scheme will be made flexible with simpler procedures and easy financing. The subsidy component will aim to increase the total milk production in the state. Proper training and other facilities, including provision for artificial insemination will be made available through reputed agencies to improve the quality of and yield from the livestock. A provision of Rs.3.5 crore has been made specifically for this scheme.

Sir, poultry farmers in the state are facing difficult times. To make this activity viable I intend to help them by providing subsidized feed to reduce their production cost and make them competitive. An amount of Rs.50 lakhs has been kept for this purpose. I also propose to extend concessionary power and water tariffs to this sector to make it remunerative for the local units. To encourage development of piggeries on modern lines, Rs.5 lakhs has been provided in the budget. Based on the response, further support will be provided during the year.

Sir, the draft Industrial Policy has already been announced. The policy document, for the first time, lays down a clear direction for the industrial development of the state. Generation of sustainable employment has been made the central focus of this policy. Sir, the favourable multiplier effect of an employment generating and environmentally sustainable industrial framework is enormous. A balanced industrial development hinges on generation of employment through setting up of new units. To ensure and encourage the employment aspect, I have made a provision of Rs.8 crore towards "employment subsidy scheme" for industries which provide employment to local youth. To trigger off entrepreneurial pursuits I have provided for "share capital contribution to local entrepreneurs and self employed scheme" s an amount of Rs. 5 crore and for "venture capital contribution scheme" an amount of Rs.3 crore. I have also provided for interest subsidy of Rs.3 crore for setting up of new industrial units. Sir, this substantial budgetary outlay of Rs. 19 crore, coupled with fast and efficient implementation, I am sure, will take us towards the desired goals. In addition, I have provided an amount of Rs.8 crore for clearing of old pending subsidies under capital subsidy scheme

Sir, the self employment schemes operated under Chief Minister's Rozgar Yojana and Deen Dayal Rozgar Yojana have made considerable progress. I intend to further strengthen and streamline these schemes. Preference, under this scheme will be given to those who have completed XIIth standard in vocational stream and passed out from ITIs. An amount of Rs.6 crore has been provided for this purpose in the budget. In order to provide career options for self employment I propose to set up an "Employment Board" which would provide guidance cum placement facilities for those sections who are otherwise not eligible for employment in government or other organisations. Training will be provided in various semi skilled activities like hair cutting, tailoring, plumbing, masonry, tourist guides etc, through government establishments like Craftsman Training Institute, Catering College and various other reputed non government institutions. Training for setting up agriculural plantations will be imparted by Goa Forest Development Corporation and Goa Horticulture Corporation. Selected candidates will be paid a stipend during the training period. An amount of Rs.2 crore has been exclusively provided for this purpose in the budget head of Education Department. I propose to link this with the Deen Dayal Rozgar Yojana and Chief Minister's Rozgar Yojana under which the trainees may avail of loans to set up their own units after successful completion of the training period. To give further boost to the traditional arts and artisans, an amount of Rs.2 crore has been provided to Khadi and Village Industries Board (KVIB). The recruitment of specialists for a period of ten years under the "Short Service Contract" which I had proposed last year will be made operational in the year ahead. The pre-employment training scheme introduced by my government has been running successfully and an amount of Rs.1.6 crore has been provided for the stipends payable under the scheme.

Sir, in aggregate, I have provided around Rs.50 crore in the budget exclusively targeted towards retention, generation and encouragement of employment. However, I am fully aware that providing money is not the only prerequisite for success of any scheme. Efficient and effective implementation is equally important. Therefore, in order to periodically review the implementation of the employment generating schemes proposed by me, a High Powered Committee will be set up under the my Chairmanship with Chief Secretary as the Member Secretary. Ministers and MLAs will be members of the Committee. Experts from related fields will be drawn to provide advisory support in implementing the schemes. With all these measures, I expect to generate employment opportunities for around 7000 youth in addition to retaining around 3000 existing sources of livelihood during the next year.

Infrastructure

Sir, I am happy to state that the infrastructure sector received tremendous boost during the last two years. The Goa State Infrastructure Development Corporation Ltd. (GSIDC), set up by my government has been successfully fulfilling its mandate as a special purpose vehicle for speedy execution of various infrastructural works, supplementing the efforts of the Public Works Department. Construction of the new municipal market in Panaji is progressing at a very fast pace and the first phase will be ready by May 2003. Bridges at Uguem and Savordem have also been taken up. The bridge at Uguem is likely to be completed by May 2003. Construction work on bridges at Aldona - Khourjuvem and Vazrem-Pirna will begin shortly and are likely to be completed within a period of 18 to 22 months. The Corporation has also taken up techno-feasibility studies for construction of a number of bridges at Khorjuvem-Poira, Adem, Khareband and Durbhat -Rasai, along with approach roads. In the next year, the Corporation will take up works relating to the bridges at Mungul, Rawanfond, Cumbarjua-Gowandali, Voldem, Barabhumi, Bolcornem, Xel-Mellavali, Parvemala in Canacona, Satrem-Sattari and Agacaim-Madkaim. I propose to construct and operationalise some of the smaller bridges in the list in the next financial year itself. The existing old bridge at Banastari will be relocated to Amona-Virdi, thereby saving around Rs.2 crore for the state. Construction work of the new hospital at Canacona has already started and the work on hospital at Mapusa will be taken up during the year. New bus stand at Canacona will be completed by December 2003. Development of bus stands at Panaji, Margao and Curchorem will be taken up. Various roads networking the touristic spots in the State with state and national highways will also be taken up for execution. These are a) Collem to Dharbandora via Sancordem, b) Collem to Dudhsagar, c) Sancordem to Tambdi Surla, d) Voldem to Kalay, e) Mandrem MDR-18 along with roads leading to beaches, f) Anjuna to Sinquerim via Baga and g) approach roads to beaches in Salcette taluka including flyovers/footbridge over railway lines. Development and beautification of tourist spots like Tambdi Surla, Dudhsagar, Mangueshi etc. and development of Fatorda, Miramar and Mala lake will also be taken up by GSIDC during the next fiscal. Development of open space in La Campal society at Miramar, football stadium at Campal and Sports Complex at Cansaulim and market complex at Cortalim will also be taken up. The proposed parking lot in Panaji, and the redevelopment of the Old Goa Medical College Complex for which considerable ground work has already been done, will be taken up for execution. Sir, I also propose to improve the infrastructure in major cities of the state like Mapusa, Vasco, Ponda by taking up works for improvement of traffic conditions by constructing new roads and flyovers outside the normal plan works, as recommended by task forces set up for these cities. Adequate financial arrangements will be made for the projects. Sir, by the year end, I propose to get an infrastructure development plan in place outlining the infrastructural requirements of the state, and prioritising them for execution by various government agencies.

Sir, the proposed international airport at Mopa has generated lot of interest nationally and internationally. I am happy to say that the exercise of land acquisition has already commenced. During the course of the year, I intend to finalise the agency for execution of the work after completion of pre-feasibility study. Necessary technical assistance from international experts in civil aviation will be taken. An initial budget provision of Rs.5.40 crore for this purpose has been made.

Sir, qualitative improvement in the condition of roads in the state is already visible. In the next two years I propose to take up the task of improvement and widening of roads, construction of subways and flyovers in the state. Government is also considering construction of good quality mining road between Sanquelim and Usgao and four laning of Panaji-Ponda section of NH-4A for which funds will be provided from sources outside the budget.

The water supply situation in the State has also improved considerably during the last two years. The Assanora Water Supply Augmentation scheme is nearing completion. The same is under testing and is likely to be commissioned very shortly. Similar scheme at Opa is also at an advanced stage and will be completed by the year end. Completion of these schemes at a cost of Rs.190 crore will ensure adequate supply of water to four major talukas of Bardez, Ponda, Bicholim and Tiswadi. The 15 MLD water supply scheme at Chandel to address water needs of Pernem taluka has been completed and commissioned. Extension work for this scheme is being undertaken during the year to ensure better coverage. The Siolim -Chopdem bridge has become operational since July 2002. The construction work of Amona-Khandola, Shiroli and other bridges are progressing at a brisk pace and will be completed in the next few months. I further propose to take up construction of a new bridge across rive Zuari on a self financing basis. Sir, from an expenditure of only Rs.170.37 crore in 1999-2000, the spending of PWD has increased to a revised estimate of almost Rs.313 crore in 2002-03. The budgetary outlay proposed for the year 2003-04 is Rs.305.86 crore. Besides these, schemes worth around Rs.300 crore are also being taken up by PWD with outside funding. Additional funds, if required, will be provided during the course of the year.

Education, Sports, Art and Culture

Sir, I am extremely delighted to announce that the "Cyberage Age Student" scheme has taken off successfully. Under this scheme, Education Department has already distributed more than 1500 personal computers to science students of eleventh standard. The scope of the scheme will be extended in the coming year to cover students in all streams in the XIth standard and to include supply of educational software. Internet connectivity at a nominal rate is also being considered for inclusion. A budget provision of Rs.25 crore has been made for this purpose. The "Mid School Meal" scheme will be implemented in the coming year in the talukas of Pernem, Bicholim, Sattari, Sanguem, Quepem and Canacona. The infrastructure development scheme to assist schools for development of infrastructure has been a great success. As promised, I propose to extend the same to the colleges during the next year. All government primary schools will be provided with drinking water and toilet facilities through a scheme operated by GSIDC. An integrated educational complex at Bambolim will be set up in the year 2003-04. The land acquisition process for this has already started.

Sir, the young minds today are being exposed to a fast changing world like never before. To assist them to cope up with the pulls and pressures of the modern world, I intend to set up career guidance and counseling units in schools. A provision of Rs.10 lakhs has been made for this purpose. Yoga training can be of immense help to the students both physically and mentally. The physical trainers appointed in schools need to pick up this art to pass it on to the students. The training to these teachers will be conducted by drawing experts in this field. I have made a provision of Rs.10 lakhs for this purpose.
Sir, it is well established that education in mother tongue is the best way to teach a child. The state has a policy of giving grants only to primary schools in Konkani and Marathi medium. However, non availability of pre primary education in these mediums is a major stumbling block in their development. To address this problem, I propose to provide funds to the extent of Rs.40 lakhs to support institutions imparting pre primary education in Konkani and Marathi. To ensure all round development of the young minds and inculcate right social, moral and cultural values, close collaboration among the parents and teachers needs to be developed by involving parent-teacher associations and voluntary organisations. A budgetary provision of Rs. 25 lakhs has been made to achieve this end.

Sir, the first instalment of the interest free loans for higher studies proposed by me last year, has been disbursed. The scheme will gain further momentum in the coming year. Am amount of Rs.3 crore has been provided for this purpose in the budget. Sir, I am happy to announce that the construction work of Pernem college is near completion and that of Khandola has started. To ensure fast completion of the second phase of the polytechnic college at Curchorem, I have provided an amount of Rs.1.25 crore in the budget. Further to my announcement last year regarding setting up of an extended campus of IIT Bombay, I have kept a budget provision of Rs.1 crore for the purpose. In order to give a further boost to technical education in the state, I have provided Rs.2 crore for completion of ITI building at Porvorim, Rs.1 crore for expansion and Rs.1.5 crore for machinery and equipments to Goa Enginerring College, Farmagudi. Besides these, 22 additional teaching posts have been created in the college to augment the strength of the faculty.

Sir, flourishing art and culture is the sign of a vibrant society. Artists have contributed significantly to the cultural development of the state. Acknowledging this, in the recent past, I have made efforts to improve their conditions by extending various benefits. However, the monetary benefits accruing to them are still insufficient. I therefore propose to introduce a "Kala Sanman Scheme" under which financial assistance given to prominent artists will be enhanced to Rs.1250 from the existing Rs.500. For artists who have won state awards, the amount of assistance will be enhanced from Rs.800 to Rs.1600. During the course of the year I propose to extend the scheme to cover 200 more artists. To enrich our art and culture, exchange programmes with other states is an absolute must. I have provided adequate funds for this purpose.

Sir along with the artists, the institutions also need to be patronised. I intend to set up mini Kala Bhavans in places like Mandrem, Bicholim, Canacona and Mapusa as centres of art and culture. I propose to develop an artists' village "Kalagram" on the lines of 'Shilpagram'. The construction work of these Bhavans along with the Kalagram will be taken up on annuity basis. A budgetary provision of more than Rs.1 crore has been made for this purpose. An amount of Rs.4 crore has been provided for Ravindra Bhavan at Margao. Rs.50 lakhs has been provided for operational and maintenance expenses of Rajiv Kala Mandir at Ponda. A total sum of Rs.1.8 crore has been earmarked for Kala Academy, Panaji and Rs.5 lakhs has been provided for upgradation of the Institute Menezes Braganza. Rs.20 lakhs has been provided for Goa International Centre for upgradation of the existing infrastructure. Enhanced provisions have been made for improvement and modernisation of College of Art, College of Music and Goa Architecture College. To encourage Goa Architecture College to generate resources, it has been permitted to take up projects on a consultancy basis. To provide actual working experience to the students, government will give small projects to be executed by them.

In the sphere of sports and games also the state has been making steady progress. The infrastructure facilities have improved considerably during the last two years. In the year 2002-03 new gymnasiums have been set up at Malbhat (Margao), Bandiwade (Ponda), Sanguem, Dhargal, and Utorda. Development of playgrounds, pavilions, change rooms at Assolna, Chicalim, Bhutte Bhatt, Poriem, Mandrem, Curchorem, Mala and Panaji are in progress. The multipurpose hall with facilities for badminton, table tennis and gymnastics at Sanguem has been thrown open for the public. Further development of playgrounds are being taken up in Agacaim, Santa Cruz, Cansaulim, Betalbatim, Colva, Utorda, Morjim, Cuncolim, Shellar, Devabag, Benaulim, Mandrem, Mapusa, Karve, Socorro and Shristal. Sir, in order to encourage sporting acitivities in the far flung areas of the state the grants-in-aid to village panchayats and non-government educational institutions have been enhanced substantially. Kit money and coaching camp allowances paid to sportspersons have also been increased from Rs.500 to Rs.1000. The long standing dues of sportspersons on account of rewards announced for them but not paid during the last ten years are also being cleared in a phased manner. The World Junior Chess championship was held successfully in the state in December 2002. National level sporting events in baseball, softball, motor sports, trekking, yachting, beach volleyball, bridge, taekwando and cross country atheletics were hosted in the state. The state teams have been doing exceedingly well in various sports and have won medals in sub junior, junior and senior categories in mens' and womens' section in many of these events. Sir, to keep up the impetus in sports and sporting activities I propose to take up the reconstruction of Bandodkar stadium at Campal to make it a recreation cum training centre. I also intend to construct a medical centre and sports hostel for girls at Peddem sports complex. Rs.20 lakhs has been provided as grants-in-aid for developing a camp site at Sattari. Rs. 10 lakhs has been provided as grants in aid to Red Cross Society. Provisions have been enhanced for national service scheme. To achieve all this, the outlay for the department has been increased from Rs.11.56 crore in 2002-03 (RE) to Rs. 14.73 crore in 2003-04. Sir, the combined outlay of sports and youth affairs for the year 2003-04 stands at Rs.17.51 crore, as compared to less than Rs.7 crore a few years back. Sir, this speaks volumes of my government's commitment to encourage sports and related activities in the state.

Sir, the importance of preserving historical documents, manuscripts, records, etc. needs no emphasis. The existing facilities in the Archives and Archaeology Department are woefully inadequate. I therefore propose construction of new premises with requisite facilities to house the department. The department will also undertake digitization of records. Necessary budgetary provision has been made for this purpose. I have also provided for development of archaeologically important sites like Panshimol, Purne Tirth at Old Goa, etc. Sir, in order to augment the facilities available in the Goa State Museum, I propose to build an auditorium which will be equipped with modern acoustic facilities.

Sir, Goa has become a model state in the country on various parameters. The state has made phenomenal progress in socio-economic spheres. The state also has immense cultural and artistic heritage. However, these aspects of the state have not been properly projected nationally and internationally. This inadequacy needs to be addressed immediately. I propose to activate the Department of Information and Publicity to perform their mandated role of projecting the progress and achievements of the state. I have provided an additional amount of Rs.1.2 crore for this purpose. I have also provided Rs.1.5 crore for publication of informative books and articles by renowned authors and photographers on the history, culture, fairs and festivals and various other facets of Goa. The state will actively support organisation of the International Film Festival, 21st International Oracle Meet and India Fashion Week for which proposals have already been received. I have taken up with the Government of India for setting up of an exclusive channel in Konkani.

Sir, the fourth estate is supposed to be the eyes and ears of a democratic society. To ensure that these "eyes and ears" function properly and efficiently, I intend to help them by providing interest free loan facility for purchase of computers. I have made a provision of Rs.5 lakhs for this purpose. This is over and above the provision of Rs.2 lakhs for the pension scheme for journalists which I had introduced last year and is already under operation.

Tourism

Sir, I am happy to state that the tourism industry in the state witnessed a healthy resurgence in the current year. The aggressive media campaign undertaken by the department last year has been a tremendous success. Around Rs. 13.50 crore was spent on promotional activities through print and electronic media, participation in prestigious tourism events such as ITB-Berlin, ATM-Dubai, WTM- London, OTDYKH-Moscow, Pacific-Asia Travel and Torusim Mart, South Asia Travel and Tourism Mart and India International Travel and Tourism Mart. The inflow of tourists has increased by more than 15 percent in the current year, which includes charters coming from Russia for the first time and I expect this trend to continue further. The state has bagged many prestigious awards including an award from Russia for best promotional activities and the "best destination of the year" award given by H&FS.
Sir, "cleaner beaches" has been the hall mark of the beach development programme during the year and the efforts have received all round appreciation. In order to promote safety on beaches, the number of life guards has been increased along with provision of modern life saving equipments. Goa Tourism Development Corporation has renovated the existing facilities in their hotel accommodations in Mapusa, Calangute and Margao. The natural spring at Boca-da-vaca has been developed into a tourist spot while the same at Anne Fonte is under development. I propose to undertake development of more such sites of tourist importance during the course of the year. Roads in various tourism circuits need to be improved drastically to ensure larger inflow of tourists. An amount of Rs.3 crore has been placed with GSIDC as annuity to improve the road conditions in various tourist circuits in the state. A proposal amounting to Rs.60 crore for improvement of roads has been moved to Government of India for approval and sanction.

The beautiful waterways of Goa holds tremendous potential for tourism and tourist related activities. GTDC has already started a luxury cruise of 24 seater between Old Goa and Panjim. A new cruise vessel, M.V. Shanta Durga has been procured and handed over to GTDC to augment the existing facilities. I intend to develop the waterways further to provide for adventure sports and other water related activities in the state. I also intend to take up dredging of Zuari and other rivers to provide for better navigational facilities both for facilitating transportation of barges and development of maritime activities. However, due care will be taken to ensure that water based activities of the tourism sector does not affect the livelihoods of fishermen. The "Heritage House" scheme announced by me last year will be implemented during the next year.

Sir, I am glad to announce that Government of India has already released Rs.105 lakhs for development of eco-tourism in Dudhsagar and Tambdi Surla. These grants will be supplemented adequately for further promotion of eco-tourism in the state. Several parks and gardens have been developed and renovated in the city areas. This will be continued and adequate budgetary provision has been made for this purpose.

Social sectors

Sir, as promised by me, the Dayanand Social Security Scheme, has brought back smiles on the faces of thousands of my fellow goans. 28947 of them have already started receiving the benefit regularly. The pending cases will be cleared, after due verification, by December this year. I have made a provision of Rs.40 crore during the next year for this purpose. It gives me immense pleasure to state that this innovative scheme introduced by my government has evinced keen interest from Government of India and other state governments.
Sir, to show our commitment to the welfare of the children, the year 2003 has been declared as the Year Of The Child. Government has also adopted Goa Declaration of Rights of Children which lays down the basic framework of the state's policy towards children. This is a small but sure step towards protecting the interests of the little ones - to shield them from physical and mental exploitation. During the course of the year various measures proposed in the declaration will be put in place. "Apna Ghar" - the vastly improved avtaar of Bal Niketan has become a better place to live for the underprivileged children of the state. Sir, I take this opportunity to appreciate the role being played by voluntary and non governmental organisations in supplementing the efforts of the government to protect the interests of underprivileged children. "Matruchahaya"- one such organisation, has been doing a commendable job in this field for the last 25 years. In recognition of their efforts and to support their activities I propose to provide a grant of Rs.75 lakhs for this organisation for improvement of infrastrucutre. Other deserving organisations working in this field would also be considered for state support in the years to come.

Sir, to ensure and uphold dignity and equality of women, the concept of "livelihood" is perhaps an absolute must. Economic independence, according to me, is an important tool for womens' empowerment. Recognising this, the draft Industrial Policy of the state provides for incentives to encourage women enterpreneurs. The "Yashashvini" scheme intended to provide gainful employment and shelter to women in distress will be implemented in right earnest. Learning from the successful experiences of AMUL, Lijjat Papad and others, the government will identify products which women can make, provide training, ensure brand identity and quality control and market these products. This will be done through an agency which will be run by professionals with management experience. Adequate budgetary provision for this purpose has been made. Furthermore, to help the physically and mentally challenged people, senior citizens and women I intend to launch the "Swabhiman" scheme under which I intend to include differently abled and even productive senior citizens for gainful employment and livelihood. The scheme will be jointly implemented by RDA and Women and Child Development Department. To supplement this, I intend to set up a Goa Bazaar on the lines of Delhi Haat where artisans and others would be free to sell their products subject to certain quality specifications. I have also made a separate provision for extending easy finance to self help groups to assist the members in earning a livelihood.

Sir, while thanking the Honourable Prime Minister Shri Atal Behari Vajpayee for fulfilling the long pending demand for central pension to the freedom fighters of Goa, on my part I propose to extend the benefit of full pension of Rs.2000 to all the freedom fighters. Further, the pending applications for enrolment for freedom fighters' pension will be considered as a one time measure by opening the scheme for a period of three months with effect from 1st April, 2003.

Sir, the long pending issue of according Scheduled Tribe status to Gowda, velip and Kunbi communities has finally been resolved by their inclusion in the list. I take this opportunity to thank the Honourable Prime Minister Shri Atal Behari Valpayee and the Honourable Minsiter for Tribal Welfare Shri Jual Oram for their efforts in resolving this long pending issue. Sir, these communities need special support and encouragement for their upliftment. I propose to establish a separate Scheduled Tribes Finance and Development Corporation. A provision of Rs.1 crore has been made in the budget for this purpose. Dhangar community, which should have been included in the list of Scheduled Tribes has been left out on some technical grounds. While keeping our efforts on to pursue for their inclusion in the list, I propose to set up a "special fund" for their economic upliftment. A provision of Rs.25 lakhs has been kept for this purpose.

Sir, during the last two years my government has initiated various labour welfare measures. The smart card scheme introduced by me last year, under "The Goa Employment (conditions of service) And Retirement Benefit Act 2001" will be made fully operational by 1st October, 2003. Further, in order to protect the workers from severe financial distress arising out of retrenchments, I intend to launch a new scheme called "Retrenchment Workers' Assistance Scheme". This will be applicable for individuals below the age of 58 years and who have been working in a permanent capacity for at least five years. Those retrenched will be provided with a subsistence allowance ranging from Rs.2000 to Rs.3000 depending on their age and period of service. The detailed scheme, which will be operated by Labour Welfare Board will be announced separately. In order to fund this scheme, I propose to increase the contribution of employers and employees to the Labour Welfare Fund form the exisitng Rs.3 and Rs.1 per month to Rs.15 and Rs.5 respectively. Sir, I believe that the ceilings prescribed for medical reimbursement under the ESI scheme are not adequate, and I have taken up this issue with Government of India. However, the cases pending for payment on account of this will be cleared in a phased manner during the year. Sir, Goa has the second lowest percentage of rural population below the poverty line. I propose to initiate a concerted effort to raise these 6000 families above poverty line and reduce rural poverty in the state to zero level in the coming years.

Agriculture and allied activities, Irrigation and Cooperation

Sir, as I have already stated at the beginning of my speech, I intend to revive agriculture and allied activities as a gainful source of livelihood. Details of the schemes related to enhancement of employment have already been dealt with by me. I have provided Rs.2 crore towards support price for areconut, cashew and sugarcane. Around Rs.2 crore have been provided for subsidies towards other crops, seeds, purchase of machinery and equipments. I intend to review and modify these schemes to make them more effective and hassle free. Sir, in this direction I intend to introduce a system of charging fixed amounts for pump sets for agricultural use. Starting from April, the agriculturists will have the option to pay Rs.100 per horsepower per month for seven months in a year or continue under the existing system. Similarly, I intend to introduce the system of granting NOC for five years on payment of three years fee for usage of the river water, thereby eliminating the requirement of annual renewal of the same. These measures will eliminate the harassment faced by the farmers.

I also intend to streamline the functioning of Horticulture Corporation to enable it fulfill its mandate. Rs.75 lakhs has been provided for infrastructure development of the Corporation.

Sir, to protect the interest of the sugar cane growers in the state, the sugar factory, which was on the verge of closure, has been infused with funds to the tune of Rs.8 crore. I intend to support it further by providing another Rs. 4 crore next year. However, a simultaneous exercise of extensive revamping of the factory will be undertaken to make it economically viable. To support agriculture and allied activities further, cold storage units storing agriculture, horticulture, meat and fish products etc. and ice making units will be charged power tariff at a concessional flat rate on par with industries consuming polluting raw materials like slag/mining rejects. They will also be exempted from payment of fixed charge component of power tariff.

Sir, due to breaching of bunds large tracts of agricultural lands have been inundated thereby rendering them unproductive. To protect such lands from further degeneration, an initial provision of Rs.3 crore has been made for construction and repair of major bunds. This will be substantially enhanced as the works progress. Another major problem faced by agriculturists is siltation of lakes and ponds which have been the traditional sources of irrigation. In order to revitalise such water bodies, I have provided for Rs.1.5 crore to be channelised with the active involvement of "user groups" for desilting such lakes. Around 100 such lakes and ponds will be taken up for desiltation during the months of April and May, 2003. I also propose to take up the restoration of many of the defunct and partially functional mini irrigation projects particularly under the lift irrigation scheme with the participation and active involvement of farmers.

Sir, water is becoming a scarce resource calling for efficient management and optimal utilisation of the available resources. I believe this can be done through cost effective methods rather than going for construction of huge dams. This belief has led us to review the extent of our participation in the Tillari Irrigation Project. I propose to undertake works worth Rs.26 crore with financial assistance from NABARD for impounding around 2 crore cubic metres of water at various locations of all major rivers in the state. This will not only improve the drinking water situation in the state but also help agriculture immensely by raising the water tables in the area.

The outlay for the department of Animal Husbandry has been increased to around Rs.14 crore as compared to only around Rs. 7 crore in 1999-2000. Under the revamped "one to ten animal" scheme loans upto a maximum of 90 percent will be provided to the farmers to buy animals. The process of obtaining such loans will be made simpler and will be directly available from banks under tie up with the government. Facilities like medicines, artificial insemination and other yield enhancing technologies will be provide to the farmers, for which budgetary provisions have been made. Provisions have also been made to replace the stock of existing animals in government run farms to ensure availability of high yield variety animals locally. Special provisions for encouraging growing of green fodder, calf rearing have been provided in the budget. A provision of Rs.25 lakhs has been made to operate the stray animal control scheme.

Sir, to improve the economic conditions of the fishermen in the state, I had announced several measures last year. I am happy to state that these measures have helped them considerably. During the next year, I propose to not only continue with the diesel subsidy scheme but also increase the subsidy to make up for the loss on account of extended period of fishing ban. I have also made provisions for supporting small and traditional fishermen. Training to fishermen and landing and berthing facilities will also be upgraded for which necessary budgetary provision has been made.

Sir, the cooeprative sector has received immense support from my government during the last two years. Mapusa Urban Cooperative Bank of Goa which has been a major player in the urban cooperative banking sector, was almost on the verge of collapse on account of various factors including mismanagement. There was a virtual run on the bank threatening the future of thousands of depositors and share holders. In order to protect the interest of these thousands of goans government consciously decided to step in and prevent the bank for collapsing. Various measures including temporary placement of funds by government run corporations to provide liquidity have been taken. In the current year I have kept a provision of Rs.2 crore towards share capital contribution for various cooperative banks in the state. I have provided for Rs.30 lakhs for interest free loans to support agriculture marketing cooperatives and Rs.15 lakhs for construction of warehousing facilities.

Science, Technology and Environment

The enforcement of the Goa Non Biodegradable Garbage (Control) Act, banning manufacture/import/sale/use of plastic bags below 40 microns thickness, and the installation of a collection cum compacting centre at Sancoale Industrial Estate have helped in curbing the menace of plastics to a considerable extent. The initiative of Panjim Muncipal Council in setting up collection centres for PET bottles will be supported and other councils will be encouraged to emulate them. The centrally sponsored scheme of Environmental Upgradation of the capital city of Panaji to upgrade the existing sewage treatment facility and improve sanitation and natural drainage all through the city, is being taken up for implementation in the next financial year. A total outlay of Rs.14.30 crore has been sanctioned for this purpose by Government of India. An initial provision of Rs.2.5 crore has been made in the budget. A draft policy to promote electricity generation through non conventional sources of energy is under finalisation. A project entitled "National (Natural) Resources Information System" (NRIS) which entails preparation of a comprehensive and systematic computerized geographical information system (GIS) of natural resources of the state will be undertaken in collaboration with ISRO. Government of India sponsored Plasma Priolysis plant for the safe incineration/disposal of plastic waste in the state will be taken up on pilot basis to be set up at GMC complex, Bambolim. A non conventional energy park is also proposed to be set up in Margao. Sir, it is my earnest desire to spread scientific temper among young students, especially in rural areas. To achieve this end, I am providing an amount of Rs.35.35 lakhs in the budget to procure and operate two mobile science laborataries.

Health

Sir, as you are aware, the state boasts of excellent health indicators which has been possible on account of wide spread network of healthcare infrastructure in the state. However, there is an urgent need not only to strengthen and modernise the existing infrastructure, but also encourage setting up of world class state of the art health care facilities. I propose to give a major boost to the infrastructure improvement of various hospitals and health centres during the next year. The Asilo hospital project at Mapusa is already being executed by GSIDC. As I have already stated, construction work of new hospital at Canacona with special facilities for treatment of liver related diseases, is in progress. In order to improve and expand the facilities available at Goa Medical College at Bambolim, a 450 bedded medical block, an auditorium and a library block are bieng proposed for construction during the next year. A proposal for setting up of the departments of Cardiology and Cardio-Thoracic Neurology, Urology, Nephrology and Plastic surgery in GMC is under active consideration. New equipments were provided to the departments of ophthalmology and orthopaedic surgery. The existing neurology section in the department of medicine has been strengthened by providing EEG and EMG facilities with trained consultants. Neuropsychological services have also been made available in GMC. The Trauma Unit performed commendably in the first year of its inception. Number of amputations have dropped drastically due to timely medical assistance provided by this centre. The unit was further strengthened with the provision of ventrilators, infusion pumps and pulse oxymeters. Funds have also been provided for computerisation of GMC and health services. To provide guidance to patients in GMC, I propose to support the guidance cell run by NGOs, for which I have made a budgetary provision. Sir, Goa is the first state in the country to promote voluntary testing of HIV. Massive awareness campaign has been held to sensitise the common man of this fatal disease. To upgrade the medical infrastructure in the far flung areas of the state, I have made additional budgetary provision of Rs.80 lakhs for primary health centres. Construction of a new building for the nursing hostel will also be taken up in the next financial year.

The existing mediclaim scheme will be revamped and streamlined to make it more focussed and eliminate manipulation. As a step in this direction, a system of compulsory registration of the beneficiaries on payment of a nominal fee will be introduced. From October 2003, all facilities under this scheme will be provided only on production of proof of registration. Similarly, for state government employees availing medical benefits I propose to introduce a token fee on the lines of the Central Government Health Scheme (CGHS) implemented by Government of India.

Transport

Sir, the measures initiated by my government to phase out old and polluting vehicles have borne fruit. Till date 46 buses including 8 from KTC have availed the benefits under the subsidy scheme for replacement of old buses. Around Rs.96 lakhs have been disbursed as subsidy for purchase of new buses. As an indication of my government's commitment to reduce vehicular pollution, I propose to make all transport vehicles of more than 15 years age go off the roads from 1st October 2003. I also propose to impose a "green cess" on non transport vehicles which are more than 15 years old. The subsidy scheme announced by me last year, for black and yellow taxi owners will be implemented from April 2003. Road safety will continue to receive attention and I have made a provision of Rs.58 lakhs for this purpose. Major initiatives are being taken to streamline the functioning of Transport Department. The enforcement wing of the Transport Department will be strengthened. As part of e-governance measure, the department will be fully computerised and services like issuance of learners' license, renewal of license, registration of vehicles, will be provided on-line through GOANET. Transport offices in Margao and Vasco will be shifted to new and spacious premises.

Sir, I am glad to announce that due to the measures taken by me during the last two years, the revenue generation of Kadamba Transport Corporation has improved. During the next year, it is proposed to replace around 50 old buses to enhance its operational effectiveness. The old liability arising out of implementation of Vth Pay Commission recommendations has been cleared to the extent of Rs.4 crore and the balance amount of Rs.2.40 crore will be cleared in the coming year for which necessary budget provision has been made I have also made a token provision of Rs.50 lakhs for the prestigious "Sky Bus" pilot project to be set up in the state as announced by Honorable Prime Minister, Shri Atal Bihari Vajpayee.

Industry

Sir, as I have mentioned earlier, the draft Industrial Policy has already been released. I, therefore, do not want to dwell at length on various measures proposed to be taken during the next year. In addition to the incentives spelt out in the policy, I propose to peg the maximum water tariff to the entire industrial sector at Rs.20. per cubic metre. All the policy initiatives enumerated in the policy will be put in place in a time bound manner. In order to implement these measures in an efficient manner I propose to upgrade the infrastructural requirements of the Department of Industries for which adequate budgetary provisions have been made.

A substantial portion of the subsidies committed but not disbursed by previous governments have been cleared. The balance amount will be cleared in the coming financial year. However, in view of the new Industrial Policy proposed, capital subsidy scheme stands discontinued with effect from 1st April, 2003. I have also provided additional funds to the Department of Craftsman Training to improve the quality of training imparted by various training centres. The manpower planning cell in the Industries Department will also be revamped. The total outlay of Industries Department has been enhanced to Rs.38.64 crore as against a meagre Rs.5 crore two years back.

At this point, Sir, I would like to draw your attention to the fact that since attaining statehood in 1987 till the year 2000 total subsidies paid to industries amounted to just Rs.23 crore, averaging at Rs.1.76 crore per annum. Against this backdrop, the budgetary outlay of Rs.33 crore for subsidies for the year 2003-04 alone speaks volumes about my government's commitment to the industrial development of the state. This, Mr. Speaker Sir, is in addition to Rs.16 crore of subsidy already disbursed during last two years.

Civic Amenities

Sir, the urban infrastructure development and provision of better civic amenities in urban areas has been a major concern on account of fast rate of urbanisation taking place in the state. During the last two years, the budgetary outlays to municipalities have increased considerably. As a result most of the cities and towns have received major facelift. Sir, to continue the commitment to better urban life the budgetary allocation for municipal administration has been increased manifold to Rs.40 crore from a paltry Rs.6 crore in 1999-2000.

The Goa State Urban Development Agency (SUDA) has been revamped and is being strengthened to make it a nodal agency for development of urban infrastructure. The agency is in the process of launching major projects which will have a perceptible impact on the development of cities and towns. A transport plaza (multifunctional truck terminus) is being set up at Margao touching the national highway. An area of 1,47000 square metres is under acquisition. This project is the first of its kind in the country with all modern facilities including truck parking, service station, transport offices, scrapyard, showrooms, hotels etc. The agency will also be taking up development of "Pragati Plaza" at Margao, with facilities like drive-in market, utility/service centres, and other related activities in addition to a permanent venue for exhibitions. The road from Miramar to Dona Paula will also be undertaken for development. Further, rehabilitation of vendors displaced from Dona Paula jetty will also be taken up. I also propose to develop bus bays in major cities to facilitate movement of vehicles and passengers. To address the problem of flooding of city areas, lot of work has been done in the current year. This will be continued in the next year and a budget provision of Rs.2 crore has been made for this purpose. To tackle the problem of municipal solid waste in the state, two modern solid waste management plants are proposed to be set up, one each in North Goa and South Goa. In addition, I have kept a provision of Rs.1 crore towards grants to the municipalities to take up garbage cleaning activities.

Development of various infrastructure facilities in the slum areas of the state are also being taken up through state and central schemes. The grants to various Planning Development Authorities have been increased substantially to Rs.3 crore. An amount of Rs.1.8 crore has been provided for new office premises of Town and Country Planning department at Panjim and Margao. Rs.2 crore has been provided for acquiring land for setting up satellite township near Panaji.

Power

Sir, power sector is one of the most problematic areas for almost all the states in the country. Goa, is, perhaps, the only exception. The achievements in the financial front has been dealt with by me in the opening sections of my speech. The physical progress of upgradation and augmentation of transmission and distribution system is also worth mentioning. The 400/220, 630 MVA sub station at Colvale along with the associated 400 KV double circuit line has been commissioned in November 2002, much ahead of the schedule. The 220/110 KV, 1X 100 MVA sub-station at Tivim along with the associated 220 KV Colvale to Tivim D/C line for evacuation of power from the 400 KV sub station has already been commissioned in January 2003. The 220 KV line from Colvale to Ponda along with 220/110/33 KV substation will be commissioned in April 2003. With this, the entire power drawal from the western region will be through the Colvale 400 KV sub station thereby improving the quality and reliability of power supply in the state. This would also suffice for the load demand of the state for the next 10 to 15 years. A 33/11 KV sub station at Pilar and 33 KV lines from Verna to Margao and Ponda to Bethora have also been commissioned to cater to more areas and offer better quality power. The scheme for providing state of art digital meters at all sub stations and for high tension consumers under the Accelerated Power Development and Reform programme has been completed. I have made a budgetary provision of Rs.40 crore for the APDRP schemes which are in progress in North Goa. GOI has already approved similar scheme for South Goa to the tune of Rs.58.35 crore and the work on these schemes will commence during the next year. Further to this, Rs.59.84 crore has been sanctioned by Government of India for supervisory control and data acquisition/distribution management system. This will facilitate the process of computerized billing system and enhance the customer care service in the state.

To ensure fast and efficient response system to consumer grievances, the department will set up two centralized district public grievance cells with computerised complaint registration system. During the past year, the coverage of the mobile control vans have been extended to to almost all the municipal areas. In the year ahead, it is proposed to extend the same to rural areas. I have provided around Rs.25 crore for maintenance and upgradation of transmission and distribution. Total plan outlayof the Department has gone up to Rs. 77 crore against a meager Rs.20 crore three years back. Substantial outlay of Rs.5.4 crore has been provided separately for street lighting. Sir, with all these schemes, and the brisk rate of progress of implementation, I foresee Goa to be the first model state in the country in the power sector.

Law and Order, Judiciary and Administration

Sir, the work of the new secretariat complex adjoining the assembly complex is progressing much ahead of schedule and will be ready for possession before the next budget session. The Shrama Shakti Bhavan at Patto, has been developed as a modern office complex and will be ready for occupation by second week of April. The proposed Goa Niwas in Chanakyapuri, Delhi will be taken up for construction and will be completed within a period of two years. The accommodation facilities in Mumbai will be upgraded. Sir, all these proposals were existing on paper for a long time - I am happy to say that they are on the path of speedy completion during the tenure of my government.

The "fast track courts" scheme initiated by Government of India is also progressing at a steady pace and will considerably reduce the number of pending cases. While the sub-registrars' offices at Mapusa and Madgaon are being shifted to new premises shortly, the office at Vasco will be shifted to spacious premises during the course of the year.
Sir, my government has taken various initiatives to upgrade the facilities available with the police force in the state. To start with, there has been a significant improvement in the living conditions of the police personnel due to adequate funding for proper maintenance and repair of their quarters. New quarters are also proposed to be constructed to augment the housing facilities available currently. The fingerprint bureau has started functioning and is of great help to the police force. Setting up of a forensic laboratory is also under consideration. A 'marine police force' has been set up and four motor boats have been purchased for this purpose. The force will be strengthened further with trained manpower and additional boats. In order to improve the functioning of the anti corruption cell, the same is being transferred to Vigilance Department. Various other improvements in the infrastructure facilities available to the police force have been done through modernization scheme which is equally funded by the Government of India and the State Government. Extensive computerisation has been undertaken to improve the information network of the department. The land acquisition procedure for setting up of a new jail in Curca is complete. Funds for construction of a modern jail have been provided in the budget. The fire services department is being strengthened by augmenting the manpower. Adequate provision has been made for purchase of modern equipments.

In order to improve service delivery in revenue offices the land records system has been improved drastically. The Record of Rights(ROR) of the urban areas known as property cards(Form D) have been computerized and these are available to the public at very short notice. The map of the cities have been computerized and survey plans are now made available on the same day unlike earlier when there was a waiting period of eight days. Maps for the city of Mapusa have been commissioned and that of Vasco and Margao cities are likely to be commissioned shortly. Computerisation of cadastral maps of the major taluka towns of Bicholim, Ponda, Pernem, Quepem, Valpoi, Canacona and Sanguem have been completed. The computierised plans will be available at these places once the new sub-offices of the Department of Land Survey are set up in Ponda, Quepem and Bicholim. About 4000 P.T. sheets have been computerised till date. The balance 10000 P.T. sheets will be taken up for computerisation and completed in the current year itself. This will help the state to introduce GIS based e-governance in the state. Online mutation constitutes a very critical element in the success of computerization of land records. With the assistance of NIC an online mutation programme has been developed and implemented in all the talukas. The mutation cases, which used to take years to be settled, can now be settled within a short period thereby eliminating corruption and harassment to the common man. Touch screen kiosks are also being provided at each taluka office to enable the public to apprise themselves of the status of mutation and land records. Computerisation of records relating to births and deaths is also being taken up. A provision of Rs.40 lakhs have been made for this purpose.

Housing

Sir, in spite of my best efforts, I could not give a final shape to the housing policy which I had promised last year. However, I am not very far from doing so and hope to announce the same by June this year. With the falling rate of interest, housing sector has been the maximum beneficiary - and it ought to be so. With this, the dream of many to own a house will become a reality. Sir, to further facilitate this, I intend to bring down the stamp duty on property transactions to 5 percent with immediate effect. Cooperative housing societies exempted from stamp duty shall now be liable to pay 2.5 percent as stamp duty. I promise to extend further concessions to this sector in the Housing Policy.

As announced by me, the Rehabilitation Board has been revamped and made operational. An amount of Rs.3 crore has been earmarked for the Board in the budget.

Local Self Government

Sir, I am happy to state that I have been able to fulfill all my promises relating to panchayats which I had made last year. The salaries for panchayat and zilla panchayat members are being paid. Additional grants to the tune of Rs.5 lakhs are also being provided to financially weaker panchayats. I intend to continue the same during the next year. I have also made a provision of Rs.50 lakhs for housing schemes for poor in the panchayat areas. For the year 2003-04 I propose to increase the grants to Zilla Panchayats by Rs.1 crore each. I also intend to formulate a scheme through which the Zilla Panchayats will be provided untied funds for execution of works as permissible under the scheme. To control the menace of garbage in panchayat areas, I have made a provision of Rs.1 crore for procurement of equipment to be leased to needy panchayats on payment of nominal fee. However, panchayats will have to bear the operating costs of the equipments.

Information Technology And E-Governance

Sir, Goa is on the way to become the first "intelligent state" in the country. We have taken significant steps to achieve this objective. The IT council comprising eminent personalities is steering the IT initiatives of the government. A Task Force for Good Governance has been constituted which will lay down the broad framework to achieve the objective of good governance including e-governance. The task force has already identified 20 government departments which are being taken up for complete computerisation in the next year. In order to ensure standardisation and economy in procurement of hardware and software the IT Department will act as the nodal procurement agency. Adequate funds have been provided for this purpose. GOANET, a wide area network is shortly being made operational for connecting all the government departments. This will enable availability of information pertaining to individual departments at any location in the state. 30 information kiosks under the name 'mahiti ghars' are being set up to deliver identified services to the citizens at their doorsteps. The coverage of these 'mahiti ghars' will be extended further. For giving a clear direction for the development of IT sector in the state, a comprehensive IT policy is under finalisation. Various new IT projects are being taken up. These include Hi-Tech Habitat Centre at Dona Paula and Cyber City. Government is also considering a proposal to establish a Special Economic Zone (SEZ) in Pernem taluka. An office of Software Technology Park of India (STPI) has been set up in December, 2002 in Goa to facilitate the approvals required for various projects from Government of India. Land has already been allotted to STPI for setting up their high speed communication facilities which should be operational in about 18 months.

Tax And Non Tax Revenues

Sales Tax, Entry Tax, Luxury and Entertainment Tax

Sir, the coming year will witness a historic success of the spirit of cooperative federalism in our country when all the States would switch over to the Value Added Tax (VAT) system. Sir, in spite of enormous complexities and differences in view points, the whole country has come together to implement what is likely to enhance the interest of all sections of society. The exact impact of VAT on the revenue collections of the states is still a matter of conjecture. However, Government of India has assured that any shortfall in collection will be compensated to the extent of 100% in the first year, 75% in the second year and 50% in the third year. On my part, I would like to assure that government will take all necessary measures to ensure that the transition to the new system is smooth and hassle free. Sales Tax Department is gearing up to face the challenges of the new system and it is my firm belief that the system, once stabilized, will be beneficial to all. The VAT system will come into force from 1st July 2003 and in the meantime all required modalities of entering into this system will be worked out. With implementation of VAT, entry tax will be abolished on all items except petroleum products. All existing exemptions will continue to be in operation till the implementation of VAT.

I further propose to grant relief to the dealers, by withdrawing penal provisions under Section 15(2A) of the Goa Sales Tax Act with retrospective effect from 1st April, 2000. This measure is proposed as charging interest on delayed payment has been separately provided for in the Sales Tax Act.

I also propose to modify "Goa Sales Tax Deferment cum Net Present Value Compulsory Payment Scheme" in order to help the units enjoying exemption of sales tax under entry 68/85 of the second schedule to the Goa Sales Tax Act and under relevant notifications issued under the Central Sales Tax Act from time to time. However, liquor units will enjoy the benefit upto a maximum of 5 years only. Further details in this regard will be enunciated in the scheme.

I propose to amend entry 68/85 of the second schedule to Goa Sales Tax Act to honour commitments to units which were granted approval by government prior to 31st Mach, 2000 and have gone into production upto 31st March, 2002 but left out due to amendments carried out subsequently.

Sir, hotel industry had to undergo tremendous stress due to 11th September event. Even though I have provided relief by reducing sales tax on food, etc. there are dues of many such hotels which are yet to be settled. In order to help them I propose to formulate a scheme for waiver of interest and penalty subject to payment of the dues within a specified period.
Sir, my government has reduced luxury tax to slabs of 8 and 5 percent during last budget. Government of India has waived the expenditure tax in order to promote tourism in the country. As a measure of further support to the industry, I propose to increase the operational period of the "off period" scheme of concession of 50 percent on luxury tax from 4 months 6 months. In order to be eligible for the benefit the units should have- a) paid all the taxes in time and b) cleared all the undisputed arrears and other dues. The scheme will be operational in the months of March and June to October.

Sir, the entire House, specially the members of opposition will agree with me that the entertainment industry including cinemas and theatres is also having difficult times on account of various factors including increasing threat from cable TV and video piracy. In order to help the cinema/theatres and make them financially viable activities, I propose to reduce the rate of entertainment tax from the present rate of 60 percent to 40 percent.

Sir, the registered dealers have been the backbone of states' revenues and have contributed immensely to the exchequer over the years. In recognition of their contribution I propose to launch a insurance cum gratuity scheme for their benefit. The scheme envisages payment of lump sum amount of upto Rs.5 lakhs. The amount will be payable either on attaining the age of 60 or on suffering permanent disability or on the demise of the beneficiary. For this purpose, a separate fund will be set up. The detailed scheme will be declared during the session and will cover individual and partnership firms.

As a revenue generating measure I intend to impose a tax of 20 percent on all lotteries including online lotteries operating in the state.

Excise Duties

Sir, the basic structure of excise duties has been largely kept unchanged for the last two years. In spite of significant increase in collection on account of various measures taken there is still tremendous scope for further increase in revenues on this front. I propose to implement various administrative measures in order to plug loopholes in the system. The existing provisions for mandatory marking of batch number and brand names will be strictly enforced at all points. Any violation of this shall be treated as 'non duty paid' goods and will attract a penalty of five times the duty applicable. I also propose to undertake review of the existing procedures to make them simpler and compliance friendly. While making the procedures simple, I propose to make the penal provisions severe.

To rationalise the structure of the duties and augment revenues I propose to make changes in the existing rate structure in various categories as detailed at Annexure A appended to the speech.

Sir, while revenue generation is an important consideration, I am not oblivious to the ill effects of drinking. The number of cases of liver cirrhosis and other drinking related diseases have been increasing at an alarming rate. Drinking is also a major reason for fatal accidents and atrocities on women. Sir, the root cause needs to be discouraged. For this purpose I intend to take restrictive measures to minimise the proliferation of new outlets selling liquor.

Accordingly, I propose to increase the application fee for new licenses for retail outlets from the existing Rs.10000 to Rs.25000. Discretionary powers under section 90(4) will be restricted to places of tourist importance only and such places will be notified and included in the Act itself. Granting of new licenses in villages outside the notified tourist places will henceforth require approval of the concerned Gram Sabhas. Advertisements promoting all liquor products will be strictly banned by amending the relevant laws. A health surcharge of 1 percent will be imposed on the excise duty as well as license fees and the proceeds will be channelised to support and encourage setting up of de-addiction centres by voluntary organisations.

Non Tax Revenue

Sir, as I have already stated in the beginning, the state has achieved significant success in improving the non-tax revenues. However, a lot still remains to be done. While it may not be a very sound economic strategy to depend only on a few items for revenues, it is also not feasible to increase the burden on common man beyond a certain point. Broad basing of user charges with justifiable rates is an important measure that needs to be pursued. Sir, I have made a beginning during the last two years in this direction by introducing nominal charges on various services provided by government. This has resulted not only in augmentation of revenues of the state but also ushered in a degree of accountability in the system. Quality service, rather than free service is what citizens expect from the government. While keeping in mind the needs of the poorer sections of society, government has to move towards providing an efficient and timely delivery of services. Health, education, infrastructure are the priority areas, where active government involvement is a must. To ensure sustained efficient involvement, there is a considerable cost involved. To recover a part of this cost from the consumers who can afford to do so, is, to my mind, not against the principles of a modern welfare state. Keeping this perspective in mind, I intend to introduce nominal fees in the health care system, especially for the advanced diagnostic facilities provided in GMC and other government hospitals. In the sphere of higher education also, I intend to revise the fee structure of colleges to partially cover the increasing costs incurred to provide requisite infrastructure.

In the transport sector I propose to increase the life time tax on non-transport vehicles other than two and three wheelers from existing 3.5 percent to 5 percent for vehicles priced below Rs.10 lakhs and 6 percent for vehicles above Rs.10 lakhs. I also propose to enhance the tax on all types of goods carrying vehicles by 10 percent. I further propose to increase the passenger tax applicable to tourist taxis with interstate permit.

While I have announced various benefits to the tourism industry, I also intend to increase the revenues from this industry in a small measure. Accordingly, I propose to enhance the licensing and registration fees under the Tourist Trade Act and bring in more activities under the purview of the Act to ensure better regulation.

As a measure of discouraging gambling, I intend to suitably amend the law relating to gambling, by making provisions to restrict entry of vulnerable strata of the society. I also propose to introduce an entry tax of Rs.200 per individual entering these places.
I further propose to levy a cess on use of government property to lay cables by various service providers including telecom and cable operators.

Sir the huge pile of scraps in the form of vehicles and furniture lying idle in and outside government departments is not only an eyesore but also a lost source of revenue to the state. To ensure that the ongoing efforts of disposal of all such scraps is speeded up I intend to make necessary modifications in the existing procedures.
Sir, with all these measures, I expect to generate revenue of around Rs.15 to Rs.20 crore over and above the budgetary projections.

Expenditure and Debt Management

Sir, as indicated by me last year, the first phase of the on line cash management system, connecting Directorate of Accounts and Finance Department, is already in place. Sir, management of expenditure is an important aspect of control of expenditure. Like any other management system, proper and timely availability of information is the key. As I have detailed in the first part of my speech, in spite of considerable pressure on the finances of the state, I have managed to keep the borrowing level under control. Sir, a lot of concern has been aired both locally and nationally over the increased off-budget borrowings by states. While sharing the concern, I am of the opinion that such borrowings, if used judiciously, is not a matter of great concern. During the last two years, GSIDC has been the largest beneficiary of state guaranteed loans. However, the loans are for specific purposes and the entire repayment has been taken care of in the budget. For loans given to PWD for completion of the augmentation schemes of Opa, Assanoara and Sanquelim, a yearly provision is being made under the PWD budget to provide for the annuity payments to GSIDC. Similar provisions have been made for all other schemes. The advantage of this mechanism is that the projects can be completed in time due to upfront availability of funds. This eliminates the cost and time overrun thereby reducing the overall financial liability of the state in the long run. In order to build up a corpus for repayment of debt, the state has already invested more than Rs.20 crore in the sinking fund set up for providing for repayment of SLR borrowings. The Guarantee Redemption fund will also be made operational in the next financial year.

Government of India has started the debt -swapping scheme under which high cost debts of the states are being replaced with low cost ones. Sir, I had already initiated this concept last year itself by providing Rs. 15 crore to KTC through GSIDC. Similarly, EDC has availed of this facility in the current year and have brought down their repayment liabilities considerably. The key area, which, according to me, needs to be controlled, is the revenue deficit. The revenue receipts of the state should not only take care of the revenue expenditure but should also finance capital expenditure partially. I completely subscribe to this view. During the last two years, the committed but unpaid liabilities of previous governments have compelled me clear the huge backlog thereby increasing such spending. With the financial liabilities of VRS behind us and with various small but significant expenditure restricting measures taken by my government and the positive trend of falling rates of interest resulting in a lower rate of increase in interest burden on past loans taken, I am confident that I will be able, not only to restrict the growth in revenue deficit, but also turn revenue surplus by the end of the financial year 2004-05.

BUDGET ESTIMATES 2003-04

Sir, as per my budget proposals for the year 2003-04, the revenue deficit is expected to be Rs.53.55 crore and the fiscal deficit Rs.426.95 crore. As a percentage of estimated gross state domestic product the figures of revenue and fiscal deficit will correspond to 0.45 percent and 3.61 percent respectively. This will be a marked improvement over the performance of the last few years. As I have already stated earlier, I intend to eliminate revenue deficit by the year 2004-05 and peg fiscal deficit to below 3 percent on a permanent basis. As promised by me, there has been a consistent improvement in the composition of receipts and expenditure of the state. On the receipts side the proportion of tax and non-tax revenue has improved steadily from around 53 percent in 2000-01 to 55 percent in 2001-02 and 60 percent in revised estimates for 2002-03. During the next fiscal I expect this figure to increase to 62 percent. Consequently, the borrowings as a percentage of receipts will come down from 35 percent to 26 percent during the same time frame. On the expenditure front the proportion of salaries, wages and other establishment expenditure has dropped from 41 percent in 2001-02 to 37 percent in 2002-03 (RE). I intend to bring it down to 36 percent during the year 2003-04. The overall deficit stands at Rs.5.12 crore, which will be bridged through the additional revenue measures proposed by me.

Conclusion

Sir, in my last year's speech I dwelt at length on the issue of good governance. I have made tireless efforts during the course of last one year to translate the essence of good governance into reality - turn "My Goa" into "Golden Goa". My efforts to involve one and all in this dream of mine is slowly but surely bearing fruits.

Mr. Speaker Sir, during my last year's speech I also quoted a popular sloka from Bhagwad Gita which meant 'perform your actions without expecting results'. I did so. The fruits of my deeds make me turn to another great saying - as you sow, so shall you reap. Sir, the fruits of my deeds are a testimony to this great philosophy and I am indeed happy to share the sweetness of these fruits with my fellow Goans.

Sir, with these words, I commend the budget to this august House.

Jai Hind, Jai Goa.

Thank you.

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