the goan I network
PANAJI
Consider this: When the previous chief minister, Laxmikant Parsekar, presented his 2016-17 budget, he had pegged the fiscal deficit at Rs 2,002 crores for the year, which was more than double compared to fiscal deficit of Rs 949 crores in 2014-15. In just a matter of two years, Goa’s fiscal deficit had shot up and became more than double.
If the situation is critical on the fiscal deficit front, the reading on revenue deficit is no better. Parsekar had estimated a revenue surplus of Rs 408 crores for 2015-16. But, during his last budget, he revised this estimate to a revenue deficit of Rs 137 crores for 2015-16.
Such situations typically happen when governments are not able to earn as much as they had thought, while they end up spending more than they had estimated. By the very nature of their work, governments find it very tough to cut their expenditure because they have to pay salaries, pensions and other day-to-day expenses, no matter what.
Besides, populist schemes like Griha Aadhar Scheme
CHALLENGES APLENTY FOR THE NEW CM
Parrikar faces twin challenges of cutting down deficit and promoting industries so that tax revenue grows
Fiscal deficit in 2016-17 was estimated to be more than double of what it was two years ago in 2014-15
Two years ago, Parsekar estimated a revenue surplus for 2015-16, but later, revised it to revenue deficit
