State govt has secured a loan of approximately Rs 500 crore to compensate contractors who have undertaken development projects within the state, and to initiate further development work. The amount was borrowed during the period from April to Aug 2024.
State govt can borrow up to Rs 3,700 crore from April till Dec. The borrowing limit will be revised in Dec for the period between Jan and March, 2026. An official said the total borrowing limit is expected to be over Rs 4,000 crore.
State govt borrowed approximately Rs 3,000 crore during the 2023-24 financial year out of a total limit of Rs 4,200 crore. “The borrowing limit will be increased during the period of Jan to March. There has been overall average revenue growth of 14-15%, and it is expected to do better,” said the official.
Chief minister Pramod Sawant had urged Union finance Minister Nirmala Sitharaman to make a budgetary provision of Rs 8,700 crore for Goa for four major projects: The Exposition of the sacred relics of St Francis Xavier, improving intercity connectivity, construction of minor dams, and achieving ‘smart water utility’.
Elaborating on the need for funds, Sawant said the last Exposition in 2014 drew at least 60 lakh pilgrims from across India and beyond, and that the number is expected to rise this year (Nov 21, 2024 to Jan 5, 2025). “State govt has to make all the preparations for infrastructure creation for the smooth conduct of this global event,” he said in his pitch for a grant of Rs 300 crore.
The official said that the reason for the borrowing in the 2023-24 financial year was due to expenditure on creating infrastructure for the 37th National Games that Goa hosted from Oct 25 to Nov 9 last year.
The previous financial year 2022-23 saw Goa borrow over Rs 1,300 crore through the open market, out of a borrowing limit of Rs 3,000 crore. In the previous financial year, it borrowed around Rs 2,700 crore from a limit of Rs 3,200 crore.
In 2020-2021, Goa borrowed around Rs 3,300 crore through the open market, out of a borrowing limit of Rs 4,500 crore. That financial year, Centre allowed 5% borrowing on the GSDP due to the Covid-19 outbreak.
