PANAJI
In a fiscal breather to the State amidst the Central government has permitted the Goa government to borrow more funds due to the adversely affected cash flow into the exchequer because of the pandemic.
In normal times, States are permitted to borrow up to 3 per-cent of its Gross State Domestic Product (GSDP) but now Goa will be able to resort to taking more loans to the extent of an additional two percent of the GSDP.
The 3 percent of GSDP ceiling on borrowings in a fiscal year has been fixed under the Goa Fiscal Responsibility and Budget Management Act.
After clearance from the Centre, an Ordinance has been promulgated by the Governor to amend the borrowing limit and raise it from 3 to 5 percent of the GSDP.
This will permit the Pramod Sawant led dispensation to borrow an additional Rs 1,500 crore in the current fiscal.
