PANAJI: The state government, dealing with a financial crunch, has borrowed over 40% of the maximum limit for the financial year 2023-24 so it can continue with developmental works. Over the last 15 days, the state has borrowed Rs 300 crore through the market.
From April to November, the state borrowed around Rs 1,500 crore for financing capital expenditure in connection with development programmes. The state’s borrowing limit is Rs 3,500 crore for the financial year.
A senior official said that the state borrowed money since there wasn’t much revenue generation and the state didn’t want to stop ongoing projects. “Now, we expect an increase in revenue generation as the tourism season has begun, and there will be no need to borrow the way we did so far,” he said.
The official said that another reason for borrowing Rs 1,500 crore is that there was no GST compensation this year, while last year, the state received Rs 1,300 crore as GST compensation. Last year, the state borrowed over Rs 1,300 crore through the open market, and the borrowing limit was Rs 3,000 crore.
Goa spent Rs 450cr of state funds for Nat’l Games infra
A senior official said that a big reason for the massive borrowing is that a huge amount has been spent on creating infrastructure for the 37th National Games currently underway in Goa.
Chief minister Pramod Sawant had requested Prime Minister Narendra Modi to release Rs 250 crore to the state as part of the central funds for the Games.
Sawant had a brief meeting with Modi, who was in Goa to inaugurate the Games at the Pandit Jawaharlal Nehru Stadium, Fatorda. The state has already spent Rs 450 crore from its own funds to create the infrastructure. In the financial year 2021-2022, the state government borrowed around Rs 2,700 crore through the open market. The borrowing limit was around Rs 3,200 crore.
In 2020-2021, the state borrowed around Rs 3,300 crore through the open market when the borrowing limit was around Rs 4,500 crore. That financial year, the Union government allowed 5% borrowing on the GSDP due to the Covid outbreak.