PANAJI
Despite repeatedly claiming a move towards fiscal consolidation, debt sustainability and reduced dependence on open market borrowings, the Goa Government has stepped up its reliance on market borrowing.
The State auctioned Rs 200 crore worth of security bonds on October 6, taking its market borrowings since September to Rs 700 crore. In September alone it borrowed Rs 500cr through auction of securities. The borrowing spree comes after the State had not undertaken any market borrowing until August 31, according to Reserve Bank of India (RBI) data.
The September borrowing was spread across four auctions. Goa raised Rs 100 crore each through security bond auctions held on September 8 and September 15, followed by Rs 150 crore each on September 18 and September 22. The two September 18 and 22 auctions alone brought in Rs 300 crore within four days.
The latest borrowing comes despite the State Government’s repeated assertion that it has been reducing its dependence on open market borrowings as part of its fiscal consolidation and debt-management strategy.
The fresh borrowings also come against the backdrop of the RBI’s advice to States to review their market borrowing requirements through fiscal consolidation, explore alternative financing options and strengthen cash-management practices to mitigate fiscal stress.
Goa’s borrowing ceiling for the current financial year has been fixed at Rs 3,700 crore, leaving the State with substantial headroom under the approved limit.
According to RBI projections, Goa’s debt repayments are estimated at Rs 1,320 crore in 2026-27, increasing to Rs 1,800 crore in 2027-28 with further rise annually.
