the goan I network
PANAJI
A cash-starved State exchequer got a timely infusion of funds as the Centre released Rs 177.72 crore April installment as Goa's share of central taxes.
Although the lowest among all States who shared the Rs 46,000 crore released by the Centre in accordance with the Finance Commission's recommendations, the funds have come into the State's Consolidated Fund at a crucial time when cash flow into the coffers has virtually dried up with the economy at a standstill amidst the Coronavirus pandemic.
According to the Union finance ministry, the funds have been released in advance and ahead of the normal schedule to help States beat the cashflow disruption caused by the back-to-back lockdowns.
Prior to the lockdowns too the State's finances had been suffering consecutive blows with the mining industry at a standstill and another major contributor to Gross State Domestic Product (GSDP)
facing uncertainty and negative global headwinds.
Reports of the State resorting to continuous borrowings through sale of 10 year bonds through the Reserve Bank of India (RBI) auction route, have surfaced regularly although the State government has been repeatedly claiming that total annual borrowings are well below the 3.5% of GSDP limits set for States by the RBI.
