A question that routinely arises around this time of the year is if the Budget is going to make a positive difference in the lives of the people or not. The answer, if one is neither an economist nor an analyst, depends on which side of the political spectrum one stands.
It would be very rare for an opposition politician to praise a Budget or for a politician from the ruling side to pan it. And that’s exactly what happened in Goa on March 26, after the Budget was tabled in the State Legislative Assembly and a vote on account for the next few months passed.
With budget speeches now largely dedicated to listing the government's achievements and future plans, attention often moves away from the state's financials.
Instead, people are more interested in what lies ahead. However, it’s through these financial figures that the health of the state can truly be assessed. Here’s a quick overview of the financials.
With budget speeches now largely dedicated to listing the government's achievements and future plans, attention often moves away from the state's financials.
Goa seems to be on a strong financial footing. The Chief Minister, in his budget speech, highlighted that the impact of various fiscal reforms implemented by the government is evident in the audit reports compiled by the Comptroller and Auditor General (CAG).
Goa ended the financial year 2023-24 with a revenue surplus of Rs 1,423 crore. This surplus allowed the State to meet most of the targets outlined in the Fiscal Responsibility and Budget Management (FRBM) Act.
The Chief Minister also mentioned that the projected revenue surplus for the upcoming year, 2025-26, is expected to be Rs 2,403 crore.
That’s not all. The ratio of total outstanding debt to GSDP has also been declining, thanks to the government’s strict debt sustainability policy. The Chief Minister also mentioned that the Union Finance Commission has capped the Fiscal Deficit to GSDP ratio at 3.5 per cent for the year 2025-26.
Additionally, the Commission has allowed un-utilised borrowings to be carried forward into the next financial year. The CM noted that the government has borrowed Rs 1,050 crore from the open market this year, well below the limit of Rs 4,500 crore. The fiscal deficit for FY 2025-26 is estimated to be Rs 2,826.44 crore, which is well within the limits set by the 15th Finance Commission.
The fiscal deficit for FY 2025-26 is estimated to be Rs 2,826.44 crore, which is well within the limits set by the 15th Finance Commission.
This Budget, in addition to the financials and the extensive list of projects and plans, included two distinct initiatives that stood out. These projects were noteworthy for their originality and out-of-the-box thinking. Notably, Margao’s Dindi and Devi Lairai Zatra have been granted State Festival status, highlighting a unique approach to celebrating Goan culture.
Among the new proposals, one is the establishment of a special wing to promote and conserve handwritten scripts, where the Goa State Mission for Manuscripts will conduct a survey of such manuscripts.
The other proposal focuses on introducing kunbi material for government school uniforms in a phased manner, with the material to be provided to students through the handicraft corporation. While details are still awaited on how these projects will be implemented, both initiatives are rooted in preserving Goa’s diverse heritage, which bodes well for the state’s cultural future.
Among the new proposals, one is the establishment of a special wing to promote and conserve handwritten scripts, where the Goa State Mission for Manuscripts will conduct a survey of such manuscripts.
On the other hand, where tourism is concerned, it could be moving to the hinterland and beyond the beaches. In an effort to diversify, the government has proposed developing caravan parks in the State.
Another proposal that could significantly boost tourism beyond the coastal areas is the government's decision to promote tourism infrastructure in hotel and medical tourism.
The plan includes offering a 50 per cent rebate on State GST, exemption from stamp duty, waiver of registration fees, and relief from other processing charges. These incentives will be provided to investors who establish at least a three-star hotel or a hospital in the hinterland talukas of Bicholim, Sanguem, Canacona, Quepem, Dharbandora, Ponda, and Sattari.
Tourism in Goa has largely been concentrated along the coast, and efforts to expand it into the hinterland have not yielded significant results. While the Budget proposals could pave the way for new infrastructure, the real question is whether tourists will choose to holiday away from the beaches.
Goa’s identity is closely tied to its beaches, and for this shift to succeed, a major change in marketing strategies will be required. It's not just about building infrastructure; changing perceptions play a big role too. The outcome remains to be seen.
