Chief Minister Pramod Sawant is on record that although Goa’s debt is bulging, and government borrowing is gradually increasing, there’s nothing to worry as a reserve fund of approximately Rs 900 crores is lying in accounts with the Reserve Bank of India to buffer the loan pain.
According to Sawant, the State government maintains with the RBI a Consolidated Sinking Fund (CSF) and and a separate Guarantee Redemption Fund (GRF) account. Between these two accounts, a whopping Rs 900 crore has accumulated over the years, he said.
Repayment costs of debts taken in the past, consumes a “growing proportion” of committed expenditure, the chief minister has said, but the funds in CSF and GRF will bail out the State in any crisis it faces in the future to service its debt.
“As of Mar 31 this year, the corpus of the CSF stands at Rs 603.54-crores and that of the GRF at 303.90-crores. These are lying in accounts with the RBI,” Sawant has said, to assure that the debt repayment scenario is under control.
