Goa will have to dig deep into Nirmala Sitaraman’s budget for the financial year 2026-27 to take comfort, since major proposals and appeals have not found favour, even as the finance minister announced a wide, forward-looking budget focusing on a structured ‘3-kartavya’ framework — economic growth, capacity building, and inclusive development.
The budget will be a setback for the State government, one that boasts about “double-engine” governance, yet has seen no major success in the proposals put forth. For example, Goa requested a 90:10 ratio of central funding to projects from the existing 60:40; there is no mention of this and the standard funding pattern would continue. Goa, being a tourism destination, had sought a Rs 700 crore fund to develop allied infrastructure, including theme parks. There is no commitment from the Centre; however, there was a “turtle trail and cashew branding sops announced. While the finance minister announced seven speed rail corridors, Goa’s Rs 160 crore for Margao railway station has been turned down and so has the Rs 1,000 crore for industrial corridors.
The biggest setback however was the fund proposal for the new district Kushavati. Goa had sought central funding to the tune of Rs 500 crore to form the third district, which was seen in line with the vision of Prime Minister Narendra Modi to add new districts. Unfortunately, there is no mention of new districts in the budget speech. Another major issue that Goa has been facing in recent times is coastal erosion. The coastline is receding with 90 beach stretches facing sand erosion. Unfortunately, the Rs 600 sought to contain coastal erosion and flood mitigation, too, has found no response. While there is a focus on green energy, there is no grant for Goa against a Rs 100 crore proposal for solar energy storage plans.
The Rs 1,049 crore fund allocation to Goa for a five-year period from financial years 2026-30 by the 16th Finance Commission is a positive for the State, but the downside is the sharp cut in rural funding that comes as a hefty blow to grassroots bodies and development. Rural funding has been cut from Rs 368 crore to Rs 174 crore. The consistent failures in compliances has not only exposed systemic vulnerabilities, but also a lack of accountability.
In the pre-budget consultations, Chief Minister Pramod Sawant’s plea for special assistance of Rs 3,600 crore to address Goa's geographical and ecological challenges met with no success. The state will have to contend with Rs 1,049 crore, which is much higher than the Rs 700 crore allocated last year. Another setback is that Goa’s request to raise the States’ share in central tax devolution to 50 per cent has found no favour, with the Centre deciding to retain the existing 41 per cent vertical devolution for all States.
While Goa will not find much to cheer in the Union budget, it will have to contend with an estimated Rs 5,891 crore share in central taxes in FY 2026-27, up from Rs 5,491 in 2025-26. The State will have to seek comfort in national-level sops. For example, the proposed "Turtle Trail" across major nesting sites in coastal states may come as a boon for turtle nesting beaches like Morjim and Agonda. Also, the “duty-free fish catch” initiative may help fishing trawlers from Goa. Thirdly, the high-value crop promotion can provide a shot in the arm for cashew and coconut farming in Goa.
The devil is in the details, so goes the adage on budgets. While there are no major gains for Goa in the budget, it will have to wait for the fine print to roll out and find confidence that the Centre has been backing the State right through.
