PANAJI
Amid concerns over rising State debt and heavy repayment of open market borrowings starting from this year, Goa government has borrowed Rs 600 cr in the second quarter of the current financial year. Overall, till date, the State has raised Rs 900 crore from the market through the sale of securities since April.
The State’s total outstanding debt at the end of March 2024 worked out to be Rs 33,573 crore, while it has to make repayment of principal amount of Rs 1504 cr on the market borrowings done ten years back.
“State did not borrow a single rupee in April while Rs 100 cr each were raised in May, June and July. The borrowing picked-up in August, with the State selling security bonds worth Rs 300 cr and another Rs 200 cr in September, as on date,” a senior officer said, adding more borrowings are planned this year alone.
These funds were primarily raised through the auction of government securities with tenure of 10-11 years.
Officer said that the State borrowing limit is fixed for this fiscal is at Rs 4500 crore while the Chief Minister has issued instructions that the limit should not cross over Rs 2000 cr this financial year. As per 2025-26 budget estimates, the State is expected to borrow around Rs 2800 cr to meet its expenditure demands.
The official said that the securities were put up for auction to meet the expenditure including payments of various welfare schemes, salaries and pensions and other infrastructure related works.
“The Finance Commission has also allowed un-utilized borrowings of the last fiscal to be carried forward in the current financial year,” officer said.
To bridge the income-expenditure gap (fiscal deficit), the State borrows from the market through the issue of bonds known as State Development Loans (SDLs), which form a major part of its total outstanding liabilities.
The State market borrowings witnessed substantial decline last year as it stood at Rs 1050 cr as against Rs 1750 cr in 2023-24.
Officer informed that for the current financial year, there is heavy repayment of principal amount of Rs 1,504 cr of open market borrowings done ten years earlier which is an additional Rs 704 cr rise from the repayment of Rs 800 cr done in 2024-25.
Following closure of mining activities, the State was bound to borrow heavily from the open market and the ten-year term of repayment commenced from this year.
