Outstanding debt level has increased over years
PANAJI
Goa has ranked third in the recently released Fiscal Health Index (FHI) report by NITI Aayog, recording a 53.6 score, after the first two ranking states of Odisha (67.8) and Chhattisgarh (55.2). The report released for financial year 2023 hailed Goa’s strong performance in revenue mobilization and fiscal prudence, stating it is among four consistent top-performing states.
According to the report, Goa’s revenue generation has been particularly evident with 68 per cent of its total revenue coming from its own tax and non-tax sources. In 2022-23, the State saw a significant 34.8 per cent increase in its Own Tax Revenue, driven by higher collections from SGST, sales taxes, stamp duty and registration fees. Moreover, the non-tax revenue grew modestly by 2.2 per cent with the increase mainly attributed to higher receipts from power revenue and administrative services.
The relative share of social services as a proportion of total expenditure was 24.3 per cent in 2022-23 and hovered in the range of 25 per cent to 28.4 per cent in the last 5 years. It was highest at 28.4 per cent in 2021-22.
The State also made substantial progress in fiscal management. From 2.5 per cent of GSDP in 2018-19, the fiscal deficit dropped to 1.2 per cent in 2022-23, staying within the limits prescribed under the GFRBM Act. Moreover, Goa recorded a revenue surplus in three out of the five years from 2018 to 2023, with the surplus for 2022-23 exceeding budget estimates by a remarkable 553 per cent.
The report however noted that Goa’s outstanding debt rose over the years. From 28.4 per cent of GSDP in 2018-19, the State’s debt reached 34 per cent of GSDP in 2022-23, breaching the target of 25 per cent set by the GFRBM (first amendment) Act, 2014.
The proportion of interest payments to Revenue Receipts increased from 11.8 percent in 2018-19 to 15.2 percent in 2020-21. However, this trend reversed in the subsequent two years, with the share declining to 12.5 percent in 2021-22 and further to 10.5 percent in 2022-23.
“For a sustainable fiscal policy, the debt-GSDP ratio should be stable or declining over a period. The public debt-GSDP ratio of the State increased from 2018-19 to 2020-21 and has been around ~35 per cent in the last 3 years,” the report stated.
The FHI report further mentioned that Chhattisgarh stands out for its Debt Index while Goa stands out for Revenue Mobilization.
“Both states have effectively balanced expenditure with revenue, contributing to Fiscal Prudence. Goa, Telangana and Odisha are leading in Revenue Mobilization and Fiscal Prudence. In addition, it was observed that Odisha, Jharkhand, Goa, and Chhattisgarh have effectively mobilized non-tax sources. Their Own NonTax Revenue as a percentage of Total Revenue was, on average, at 21 per cent,” the report explained.
