Goa: Fiscal deficit needs priority attention

Panaji is among the 98 cities recently selected for the Smart Cities project by the urban development ministry.

By: ENS Economic Bureau | New Delhi | Published:March 13, 2017 1:39 am

 

Goa Elections, Goa results, goa economy, Goa BJP, Goa Manohar Parrikar, urbanisation goa, goa instrialism, Panaji urban planning, Goa smart cities, goa tourism, goa polls The literacy rate in Goa is among the best across the country. (Representational Image)

For Goa, which has some of the best social indicators in the country alongside high levels of urbanisation, literacy and a low rate of crime, the contribution of industry in the state’s gross domestic product is among the highest in the country. The state’s fiscal ratios, though, are marginally out of range, which would need priority attention of policy makers even as they are expected to make a renewed push for the three major drivers of Goa’s economy — tourism, the technology sector and mining.

In terms of industrial competitiveness, the state scores high on specialised factors of comparably better infrastructure and skilled manpower. In terms of urban planning, Panaji is among the 98 cities recently selected for the Smart Cities project by the urban development ministry and the project is being implemented by the Goa State Infrastructure Development Corporation.

On the state finances, while revenue receipts have seen an increase, the expenditure, too, has been surging. The total receipts estimated for the year 2014-15 were 19.81 per cent more than the Revised Estimates of 2013-14, according to the state Budget. Goa’s Gross State Domestic Product or GSDP reflected a growth of 7.71 per cent in 2013-14, with the primary (largely agriculture) and tertiary (services) sectors growing 9.86 per cent and 8.64 per cent, respectively, even as the growth in the secondary sector was at a comparatively tepid 5.60 per cent.

Total Budget size for the financial year 2015-16 was pegged at Rs 13,331.44 crore, which was 26.48 per cent higher as compared to last year. According to the state Budget, the overall Plan size was projected to see a sharp 41 per cent increase to Rs 6,190.97 crore for 2015-16, compared with Rs 4,389.25 crore for 2014-15. For the financial year 2015-16, the worrying aspect is the high fiscal deficit of 4.39 per cent, the highest among the five states that went to polls.

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