PANAJI
With Goa’s key demand for special central funding for the newly notified Kushavati district remaining unaddressed in the Union Budget 2026–27, the State government is now exploring the option of borrowing under the Centre’s 50-year interest-free Special Assistance to Capital Investment (SACI) scheme to meet the capital and developmental requirements of the third district.
The proposed borrowings will also be used to fund the State’s industrial corridors project.
During a pre-Budget meeting with Union Finance Minister Nirmala Sitharaman, Chief Minister Pramod Sawant had sought an overall budgetary support of around Rs 4,000 crore for Goa.
A key demand was a special allocation of Rs 500 crore for Kushavati district, which the government projected as a major administrative reform aimed at improving governance delivery in interior and fast-growing regions. The State had stressed that early central assistance was critical for setting up offices, connectivity and essential public services.
Speaking to media, Sawant admitted that the special funding for the district did not materialise in the Budget. He said the required infrastructure and administrative setup would now be undertaken using funds borrowed under the interest-free scheme. “This is a 50-year interest-free loan. Under this scheme, we can borrow more than Rs 500 crore to carry out the necessary administrative changes,” he said.
The Chief Minister also said the government would fund its Rs 1,000-crore industrial corridor project, integrated with national highways, through the same scheme. “In the current financial year, Goa received Rs 1,400 crore under the scheme. We have sought an enhanced allocation in the new Budget and are hopeful of receiving it,” he added.
Sources said that pending borrowings under the scheme, the State would initially have to make provisions from its own budget for the new district. “The necessary budgetary allocation for the third district will be made in the State Budget 2026–27,” the sources said.
Apart from seeking Rs 700 crore for tourism, as reported earlier, Goa had also demanded Rs 160 crore for the redevelopment of Margao railway station, Rs 600 crore for coastal erosion control and flood mitigation, and Rs 300 crore for strengthening healthcare services.
“The Revenue, Fire and Forest departments have already submitted proposals for disaster mitigation, including forest fire management. These proposals, which are pending with the Centre, are at an advanced stage of approval. We expect clearances and some funding before the end of the current financial year,” Sawant said.
The State has also sought Rs 600 crore for upgrading sewerage, solid waste management and storm-water drainage systems, along with a dedicated scheme to promote the concert economy, theme parks and immersive tourism assets.
