Oppn warns of growing burden; Sawant says funds used only for capital projects
MAPUSA
A sharp exchange erupted in the Goa Legislative Assembly on Monday as the treasury and opposition benches locked horns over the State’s rising debt, with Chief Minister Pramod Sawant asserting that Goa’s finances remain stable and that government borrowings are being used strictly for capital expenditure.
Responding to questions raised by AAP MLA Venzy Viegas on off-budget borrowings, Sawant told the House that the State has managed to reduce its debt-to-GSDP ratio from 30 per cent to 27 per cent and is aiming to bring it down further to 25 per cent in the coming years.
He clarified that the State government has already informed the Centre about off-budget borrowings and added that such borrowings by government corporations have not been permitted since 2020–21.
Sawant informed that based on the findings of the Comptroller and Auditor General (CAG), the government has begun preparing a debt sustainability framework, a task entrusted to the National Institute of Public Finance and Policy (NIPFP), which is currently underway.
The Chief Minister also said that Goa has been presenting revenue surplus budgets since 2020–21 and continues to remain within the borrowing limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) Act.
Questioning the government’s borrowing strategy, Viegas asked why the State was opting to borrow from the market when it was eligible to avail interest-free loans from the Centre.
The CM informed the House that under a special assistance scheme of the Government of India, Goa plans to avail loans worth Rs 4,500–Rs 5,000 crore in the next financial year with a 50-year interest-free repayment period.
Highlighting the State’s spending pattern, the Chief Minister said the government had utilised Rs 4,148 crore for capital expenditure in the current financial year.
Out of the borrowing limit of Rs 4,500 crore from the open market, the State has so far borrowed Rs 1,250 crore and plans to restrict such borrowings to about Rs 1,000 crore in the next financial year.
Sawant also cited an assessment by NITI Aayog, which ranked Goa third in financial management.
However, the Opposition raised concerns about the growing debt burden.
Viegas said the State’s total debt had increased from around Rs 16,000 crore to Rs 35,000 crore over the past nine years and warned that debt servicing would put increasing pressure on the State’s finances.
Leader of Opposition Yuri Alemao also criticised government spending on events, alleging that Rs 677 crore had been spent on various programmes since 2022, averaging nearly Rs 47 lakh per day.
He further claimed that Rs 13 crore was spent on the 60-minute ‘Viksit Goa, Viksit Bharat’ programme attended by Prime Minister Narendra Modi.
Responding to the criticism, Sawant reiterated that the government’s borrowings are meant exclusively for capital development projects and not for organising events.
