This is a unique year to present a State Budget. Although the Chief Minister will be close to completing two years in office, last year has largely consumed the government’s efforts on fighting the pandemic. The firefighting mode notwithstanding, the government has not shown the kind of zeal that is expected to support businesses.
With the State Budget in sight, there is a clamour to seek industry inputs. And like every year, various industry bodies will send in their wish lists. Some of this may result in favourable decisions. Others will be relegated to the bin – only to resurface the next year with added strains to the demand.
Assuming that the government has indeed honourable intentions to support industry, it would not be wrong to say that in so far as business sentiment is concerned, the government’s report card is very dismal.
There is discontent simmering in just about every sector that holds sway in Goa’s economy – manufacturing, tourism, technology, real estate.
We shall not even mention mining, as that matter, as of now, looks quite out of the State government’s circle of influence.
If you have read the local papers, the industry is really not asking for much. Some have even gone out of their way to accommodate the State’s challenges due to the pandemic and toned down their demand list.
There is a general demand to lower taxes and duties, which the Chief Minister has also been receptive to.
The manufacturing sector’s prime demand is to upgrade the infrastructure and facilities at industrial estates. The common smokescreen that comes to our minds is to equate the condition of most industrial estates while looking at the one at Verna. This is a fallacy and truly an exception – and kudos to the stakeholders of the Verna Industrial Estate. The State should endeavour to keep Verna as a benchmark for all industrial estates across Goa, especially those in the hinterlands. A walk around some portions of these industrial estates can spook you, what with decrepit and shambling units – quite a few of which are unoccupied. The need to repatriate industrial land which has been reclaimed after the SEZ fiasco is also what some quarters of industry are hoping for.
The tourism sector is asking for taxes to be waived off – especially excise license fees to small hotels, bars and restaurants, who have not been operating for a major portion of the year. There is a demand to not levy any new State duties like municipal taxes – the pandemic having crippled much of the sector, which is seeing a slow rise with the growth of domestic tourists. But with international tourism nowhere close to opening soon, tourism could do with some governmental support.
The real estate sector is seeking relaxation in infrastructure tax, stamp duty and sanad conversion charges.
The other sector which is waiting for relief is technology. The government was all set to float a new IT Policy this year. Goa Technology Association has instead pleaded to implement the 2017 IT Policy – and has sought support for IT businesses – and not just for startups. The IT sector has been generating employment and business, in India and overseas and is looking for infrastructure upgrade and matching grants to employ personnel and manage workspaces.
The Chief Minister has his job cut out before the Budget. He must manage a balancing act to support industry, which will in turn help the State in employment generation. One cannot miss the fact that this Budget will be a run-up to the State Assembly Elections in 2022 and we could have a new administration in time for next year’s State Budget. The industry is watching the government closely. It requires all the support to withstand the blow imposed by the pandemic
