PANAJI
Goa has stepped up its reliance on market borrowings, raising Rs 500 crore through four security auctions in September alone, just a month after the government claimed it had reduced dependence on open-market loans and was pursuing fiscal consolidation and tighter debt management.
As per daily borrowing data released by the Reserve Bank of India (RBI), Goa raised Rs 150 crore each through two separate auctions held on September 18 and September 22, taking the borrowing to Rs 300 crore within four days.
Prior to this, the State had raised Rs 100 crore each through security bond auctions held on September 8 and September 15.
These whopping borrowings in just one month come despite the government’s assertion that it has been reducing its dependence on open market borrowings as part of efforts towards fiscal consolidation, debt sustainability and improved debt management.
The State had not undertaken any market borrowing until August 31, according to RBI data.
During the recently concluded Assembly session, Chief Minister Pramod Sawant had said the government had stopped relying on open market borrowings and was instead focusing on fiscal discipline, revenue mobilisation and debt management.
Goa’s borrowing ceiling for the current financial year has been fixed at Rs 3,700 crore.
The State, meanwhile, repaid Rs 1,103 crore towards principal and interest on outstanding loans during the first quarter of 2026-27.
The debt repayment burden is projected to increase steadily in the coming years. According to the RBI, repayments during 2026-27 are estimated at Rs 1,320 crore, rising to Rs 1,800 crore in 2027-28, Rs 2,350 crore in 2028-29, Rs 2,600 crore in 2029-30 and Rs 3,300 crore in 2030-31.
The RBI has advised States to review their market borrowing requirements through fiscal consolidation, explore alternative financing options and strengthen cash management practices to mitigate fiscal stress.
