Saturday 24 August 2019

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Economy | Finance

Budget relies upon private investment for development

 

The annual budget presented for the tourist state of Goa is striving for a surplus through the additional resources mobilisation estimated at Rs 12 crore, despite showing a deficit of Rs 7.38 crore, with a planned gross expenditure at Rs 1294.96 crore.

Chief Minister Pratapsing Rane, while presenting the budget in the House today evening, claimed it to be growth oriented, leaving more scope for private investment in infrastructural projects, both domestic and foreign.

Admitting poor infrasructural facilities in the state, he has announced plans to seek private sector participation in areas like running of hotels, maintaining parks and tourist spots, creating physical infrastructure like roads, minor ports and other transport facilities.

While making Goa a place for leisure tourism with setting up of a World convention centre, South Asia's largest oceanorium and a science museum, the CM has also announced to form a Heritage Trust in order to develop heritage tourism in the state.

As production of foodgrains has virtually remained stagnant since '90, the government thinks it more sensible to diversify and develop agricultural land for commercial purpose like cashew cultivation, and coconut and teak plantations.

The budget, for the first time, shows a net revenue deficit of Rs 36.80 crore, with estimated revenue expenditure of Rs 909.65 crore and revenue receipts at Rs 872.80 crore. It has occurred due to lumpsum provision of Rs 70 crore made in view of the Fifth Pay Commission recommendations.

The capital account also shows a net deficit of Rs 21.29 crore, with Rs 287.32 on expenditure side and Rs 266.03 as the receipts. But, with a plan to meet the deficit partially from Public Account, estimated at Rs 50,75 crore, the overall deficit falls down to Rs 7.38 crore.

In order to mobilise additional resources, Rane today also announced a new infrastructure tax of 3 per cent on construction of multi-dwelling buildings, expecting to fetch around Rs 2 crore. He also hiked excise duties on local manufacture as well as import of IMFL and beer, while abolishing bottling fee on liquor and wine, yielding total Rs 3.50 crore.

While planning to yield Rs 6 crore by revising taxes on motor vehicles as well as on passengers and goods, it appears that price hike in public transport in Goa is inevitable. Rane has also hiked the court fees to mobilise additional Rs 75 lakh.

The approved plan outlay for the tiny state stands at Rs 230 crore, which comprises Rs 71 crore of negotiated loans, symbolising a deliberate policy shift towards debt financing. State's own resources for financing it are assumed at Rs 125.26 crore while the central support is placed at Rs 104.74 crore.

While government's overall debt amounts to Rs 700 crore, it plans to repay loans of only Rs 31.09 crore this year. It however does not include a loan of Rs 388.70, taken during its union territory days till 1986-87, which the centre has agreed to write off.

The total revenue receipts of Rs 872.80 include Rs 107.85 crore as the state's share on central taxes and Rs 9.03 crore as non-plan deficit grant. The capital receipts of Rs 266.03 crore, on the other hand, include Rs 21.17 crore on market borrowings and Rs 69.73 crore on other borrowings.

With an investment of Rs 700 crore in public and private sector in last one year, Rane envisages a growth rate of over 8 per cent annually, as against 5 per cent average growth rate witnessed earlier.

The Net Sate Domestic product at current prices registered an annual rate of growth of over 13 per cent over the period 1980-81 and 1995-96 whereas the per capita income increased from Rs 3145 in '80 to Rs 5341 in '95, Rane informed the House.






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