The first budget for the Pramod Sawant 2.0 government, presented days after the swearing-in ceremony of the council of ministers, had some strong expectations to meet, for it came amidst the backdrop of the rising fuel prices as well as the stated commitment of focusing on good governance, employment generation, and mining resumption.
With employment down from 49% to 32% across the last five years (May 2016 “ December 2021 period), debt soaring by 52% (2016-17 “ 2019-20), and the Covid pandemic casting a large shadow on all matters in the previous term, the budget represented a chance for the government to make a fresh, positive start.
The start of the budget itself was certainly a positive one -- 12.86% greater budgetary allocation this year compared to last - with critical care blocks to be established in Goa Medical College (GMC) as well as the South Goa District Hospital. Given the disadvantages faced by the people from the south, this is, though delayed, a welcome step.
Similarly, the decision to upgrade the Primary Health Centre (PHC) at Sanguem, with an outlay of Rs 18.77 crore, also merits accolades for the benefits it would provide to an area that has always starved for access to quality healthcare facilities. The establishment of an ESI hospital in North Goa shows that the government has got the foresight to plan for future health contingencies.
Industrial units have often suffered in the State due to a lack of access to constant power, and the proposal for a power unit at Tuem will be a boost to attract investment in the upcoming Tuem Electronic City. Logistical policy, if formulated as promised in the budget, can help turn Goa into an export hub, given the proximity to other locations devoid of a shipping port (like Belgaum), which currently route their exports through Nhava Sheva in Mumbai, an altogether time-consuming and expensive affair. The provision of loans to farmers at a 0% interest rate up to Rs 3 lakh will provide a much-needed impetus to agricultural production in the State.
It was also heartening to see sustainable activities receive the spotlight in the budget. Solar rooftop subsidy for residential areas, the establishment of solar energy plants in health centres to cater for their energy needs, and the decision to purchase 100 electric buses, all indicate a refreshingly positive step in the right direction given the brickbats the government faced in its previous term for its environmental attitude.
Given the extent of the outlay and the intention to pay back the accumulated debt, it would have been difficult to expect any concession on taxes, especially on petroleum products. However, what could have been done was some focus on micro, small and medium enterprises (MSMEs), especially the manufacturing ones whose number is close to a thousand, and generate sizable employment in the State. Land acquisition cost in industrial estates has steadily risen in recent times and while large firms might not feel the pinch as much, an MSME will certainly find it difficult to gain access to funds. Assistance to them, especially local entrepreneurs who wish to start their manufacturing ventures in the State, could have been facilitated.
Any more minuses, though, are hard to point out as almost all critical sectors required to be paid attention to have received it. The budget paints a good picture, has its heart in the right place, and if the commitments are indeed delivered, Dr Sawant’s promise to Goans has a fair chance of succeeding.
(Dr Amiya Kumar Sahu is Associate Professor, Finance & Accounting, and Dr Rohit Prabhudesai is Assistant Professor, General Management & Economics from leading B-school Goa Institute of Management)
