poor state of affairs
Only West-Bengal at 32.9% and Punjab at 31.4% as outstanding liabilities to GDP performed worse than Goa in 2016
State government has to reserve Rs 30.6 from every Rs 100 it earns, as it owes that much to its lenders
Goa’s outstanding liabilities formed only 23% of its GDP in 2012
-------------------------------------
Goa’s liabilities form 30.6% of GDP
Third highest after Punjab and WB
Byline: The Goan Network
The state government’s outstanding liabilities as a percentage of its gross domestic product (GDP) is third highest across all non-special category states in India. As per a study of the Reserve Bank of India (RBI), Goa’s outstanding liabilities form 30.6% of its GDP in 2016, which is third highest only to Punjab and West-Bengal.
In other words, it means that the state government has to reserve Rs 30.6 from every Rs 100 it earns, as it owes that much to its lenders. Besides, this percentage has increased dramatically in the last five years. As per the same study, Goa’s outstanding liabilities formed only 23% of its GDP in 2012.
Outstanding liabilities have a direct relation the public debt. Goa’s public debt too has been rising sharply in the last few years. The directorate of planning & statistics revealed economic survey few days back, which said that Goa’s public debt stands at Rs 10,836 crores in 2016 compared to Rs 6,614 crores in 2011.
It is clear that Goa government is borrowing more, which is being reflected in various statistics. But, if the government is borrowing more, then it is spending a lot more on capital outlay as well.
Capital outlay means expenditure on infrastructure like roads, highways, bridges and basically everything, which will give benefit in the long run. The state government’s capital outlay stood at Rs 1,184 crores in 2011-12, which has increased to a whopping Rs 2,903 crores in 2015-16.
A number of special category states like Jammu & Kashmir, Himachal-Pradesh, Manipur, Mizoram and Nagaland, have more outstanding liabilities in percentage terms than Goa. These states get the status of special category due to several reasons like poor economy and infrastructure, precarious financial position and difficult terrain.
Goa is a non-special category state, as it does not fall in any of these categories. Due to that, it should only be compared to other states in non-special category. In this category, only West-Bengal at 32.9% and Punjab at 31.4% as outstanding liabilities to GDP performed worse than Goa in 2016.
