PANAJI
A looming repayment cliff awaits Goa from 2026-27 onwards, with the State government set to shell out over Rs 11,370 crore over the next five years to service loans raised against government securities, apart from interest liabilities on State Development Loans (SDLs) and other internal debt. Significantly, the government plans to refinance a large portion of the maturing debt through fresh borrowings instead of retiring it outright.
In the upcoming fiscal year 2026-27 alone, the State will have to pay around Rs 5,320 crore-comprising Rs 1,320 crore towards the maturity of government securities and nearly Rs 4,000 crore as interest on SDLs and other internal borrowings.
The figures were released by the Reserve Bank of India (RBI) in its report State Finances: A Study of Budgets of 2025-26, published last month, which pegged Goa’s outstanding liabilities at Rs 35,608 crore by March 2026. The RBI cautioned that factors such as geopolitical uncertainty, persistently high debt levels and rising contingent liabilities from guarantees and cash transfer schemes pose growing risks to State finances.
According to the study, Goa will begin repayments of government securities auctioned as far back as 2016-17. While repayments in 2026-27 are estimated at Rs 1,320 crore, the burden will rise steadily 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 advised States to review market borrowings through fiscal consolidation, explore alternative financing options and strengthen cash management practices to mitigate fiscal stress.
As of March 2026, Goa’s internal debt is projected to stand at Rs 25,986.6 crore, with SDLs accounting for the largest share at Rs 21,470 crore. In addition, the State’s central loan component is expected to reach Rs 5,544 crore.
A senior government officer said the principal repayments would largely be met through fresh borrowings and revenue generated from the resumption of iron ore mining. “The State has reduced its overall borrowing in recent years. Last year, Goa borrowed about Rs 1,050 crore compared to Rs 2,550 crore in 2024-25. This year too, borrowings have been kept within Rs 1,100 crore,” the officer said.
Following cuts in GST compensation, the State has shifted focus towards strengthening its own revenue generation, the officer added.
