Amidst chaos, Goa Government has passed the State Budget in a one-day session of the Assembly.
The State Budget for the year 2020-2021 was passed by Chief Minister Dr Pramod Sawant amidst ruckus created by the Opposition benches during the one-day session of the Goa Legislative Assembly.
This move drew widespread criticism from all quarters as the Government passed the Rs 21000 crore Budget without any discussion and after the entire opposition had been evicted from the House.
The budget for the current financial year projects a revenue surplus of Rs 353.6 crore with the total budgetary allocation being pegged at Rs 21,056.3 crore as against Rs 19,548.6 crore in 2019-2020.
Chief Minister Dr. Pramod Sawant, who also holds the finance portfolio, had presented the State Budget in February this year, much before the onset of the Covid-19 pandemic in the State. The Budget presented then had the following allocations.
Rs 14,906 as revenue expenditure while Rs 5,069 was earmarked for capital works.
28.5% of the State’s earnings are utilized towards developmental works and maintenance of existing infrastructure.
36.9% of the State’s earnings go towards salaries, wages, pension, gratuity and grant-in-aid; 2% goes towards subsidies and 12.7% goes towards debt repayment.
This was much before the onset of the Covid-19 pandemic in the state.
The cash strapped Government has passed a surplus Budget and this fact was not lost on many financial experts who are of the opinion that it was a trifle façade of numbers and the government was never serious about it.
While passing the Budget, Sawant admitted that the State economy had been hit hard due to the Covid -19 pandemic. “The ongoing crisis has had a major impact on the State’s economy. The revenue receipts, which were estimated in the Budget, have declined drastically. But despite that, the government has managed to run the state,” he said.
Dr. Sawant further said that the Budget that was presented on the floor of the House was an estimated one and it needs to be passed considering the requirements to tackle the corona virus and its management.
Dr. Sawant also stated that since March the State government has not lacked anywhere in COVID management and they have been completely transparent on the issue.
The Chief Minister mentioned that after the unlocking of the industrial sector, the State has been gaining revenue. The government is hopeful that the economic situation will normalize in the days to come. “We will be able to review the infrastructural work so also recruitments in the departments,” he added.
Dr. Sawant stated that he did not have any issues with discussing the Budget but this was not the right time as the urgency was to pass the estimated Budget.
Some of the key points from the Budget speech are listed below.
- Chief Minister Dr. Pramod Sawant announced several infrastructure projects in the hinterland and promised to complete around 50 ongoing projects that Goa State Infrastructure Corporation Ltd has in its portfolio.
- Creeks and water bodies, especially the St Inez creek will be rejuvenated.
- Geographical Indication (GI) for several local vegetables and fruits such as ladyfingers, brinjals, ‘Mancurad’ mangoes and others would be obtained.
- Hinterland tourism, eco tourism and adventure tourism would be promoted, as well as a tourist guide support scheme has been announced to help tourists.
- Heritage circuit for Bicholim and Sattari and efforts to build a Tribal Bhavan.
- A one lakh insurance cover has been announced for all cooperative societies.
- The Chief Minister stressed on the ‘ease of doing business’ for industries. He also announced a labour and employment smart card for all employees in Goa to gather data on employment in the State.
- In order to reduce man-animal conflicts and to discourage monkeys and birds from venturing into farms, Goa will grow fruit bearing trees in forests.
- Goa will reconstitute the state finance commission in order to oversee the utilization of funds and to support lower tiers of governance.
- A medical college in south Goa will be set up through public-private partnership.
- Rs 250 crore allocated to hold the National Games in Goa.
- Government will ensure completion of coast zone management plan.
- Integrated inspection plaza at all entry points.
- Plans to modernize the Goa Police Force; has been announced.
- The long pending advertisement bill to be implemented
- In the coming financial year, a legislation to protect journalists from violence and threats will be introduced.
- Dr. Sawant announced that 50 electrical buses along with charging stations will be purchased for Kadamba Transport Corporation.
- The first flight from the Greenfield airport at Mopa will take off in the first quarter of 2022.
- There is a proposal to complete underground cabling to ensure continuous power supply to domestic users and industries.
- The Government wants each bottle of liquor sold to carry a hologram to track genuineness of the bottle.
- To fill up the revenue gaps, Dr. Sawant announced an increase in excise duty on liquor, hike in notified land prices and stamp duty.
- Goa to levy a professional tax on professionals in rural and urban areas.
Leader of the Opposition Digambar Kamat had moved an “adjournment motion” in the State Assembly seeking a discussion on the COVID-19 pandemic, which was not admitted by the Speaker, following which the opposition benches rushed to the well of the House.
While the opposition, including members of Congress, Goa Forward Party, MGP and an Independent members, continued pressing for a discussion on the adjournment motion, the Government passed the Budget.
If the Government tried to push its way through the Budget and a host of legislations, the opposition also made sure that they had their say among the people and managed to grab eyeballs on social media. The speaker removed the slogan-shouting opposition members from the House in order to pass the Budget. This gave the opposition a chance to create a perception that the Government was not serious in putting up a united front to battle the deadly virus.
The Government’s passing of the Budget without any discussion and the speaker rejecting the adjournment motion gave much substance to the opposition over Covid management in the state, which has seen people losing their lives to the virus.
The opposition caused much embarrassment to the state government as they met Governor Satya Pal Malik and urged him to recommend President’s Rule in the State.
Opposition leader Digambar Kamat appraised the Governor that the government didn’t allow the adjournment motion to come up for discussion fearing mismanagement and irregularities in handling of the Covid crisis would be exposed.
Kamat stated that the Chief Minister had made no effort while preparing his Budget Speech and had resorted to juggling with fiscal figures to try and conceal the actual nature of the state’s finances.
Kamat said that schemes and figures read out by the Chief Minister were a repetition of those made by former chief minister Manohar Parrikar, while also blaming the BJP-government’s policies for weakening the state’s finances, stating that it would put a burden of Rs 1.3 lakh on every Goan.
“The Government will have to borrow a minimum of Rs 3000 crore to meet its capital and revenue requirements. Where are you going to get Rs 300 crore from? Besides this, in the Budget there is a provision to borrow Rs 2,200 crore. Is it prudent to borrow Rs 5000 crore in a year?” Kamat questioned.
Kamat further stated that the Chief Minister had not put in much effort in his budget speech. The schemes were the same and there was nothing new in the Budget. “The Budget was presented in February and we are discussing it in July,” he added.
In the opposition’s absence, the Government passed the Budget for 2020-21 and the demands for all departments.
The State Assembly passed the Goa appropriation (no.2) Bill, 2020, empowering the government to withdraw over Rs 21,056 crore from the state’s consolidated fund for the financial year 2020-21. The Assembly also passed supplementary grants for Rs 286 crore
(Disclaimer: The key points from the Budget Speech, mentioned in the article are taken from the Chief Minister’s Budget speech presented in February this year)
