Chief Minister Pramod Sawant unveiled a surplus budget projecting an ambitious economic trajectory and addressed critical sectors such as education, infrastructure, industries and welfare. The budget projects a robust Gross State Domestic Product (GSDP) growth rate of 14.27% and paints Goa’s position as a vibrant economy despite the grim fiscal situation. While the State gets a shot in the arm through several policies, doles, sops and subsidies, the worrying factor is that the government continues to bank heavily on the Centre, besides the resumption of mining on a full scale.
The Sawant government may be proud of projecting a revenue surplus of Rs 2,403 crore. Still, the downside is that it continues to leverage the "Double Engine" model to attract an unprecedented Special Assistance for Capital Investment of Rs 1,520 crore from the central government. These are not healthy signs due to the fluctuating political dynamics.
Nonetheless, a positive and major shift this time the wheels of mining should begin to move substantially. Sawant announced the e-auction of nine more iron ore mining leases. The State has so far e-auctioned 12 mineral blocks consisting of 24 mining leases, with two mineral blocks commencing operations. These are positive signs for the state's economy, which has been limping ever since the sector was shut.
This budget outlined a total expenditure of Rs. 28,162 crore for the financial year, with a major focus on revenue services and capital investments. The concern however is about the revenue expenditure dominating the total outlay, with questions surfacing whether the capital investments adequately address Goa's infrastructure deficits, particularly in areas like transport and public services. There is a high level of scepticism about the sustainability of funding, particularly given the Rs 1,504 crore repayment of open market borrowings from previous years.
Education and skill development emerged as crucial pillars within the budget, reflecting Goa’s commitment to achieving 100% literacy and enhancing vocational training. Allocations totalling Rs 2,100 crore for school education and Rs 700 crores for higher education are ambitious goals. The introduction of the ‘CM Fellowship Scheme’ aimed at fostering research talent in multinational companies within Goa is another positive. Implementation remains the watchword though.
The proposed 'Unified Pension Scheme' is a game-changer because it deviates from prior methodologies promising secure pension benefits to government employees, integrating inflation indexing and assured minimum pensions, but the immediate and long-term impacts and sustainable financial modelling will be a challenge. The question is whether this move could throw additional burdens on the State’s finances amid existing economic hurdles.
The budget, no doubt, has many positives. Infrastructure development continues to be a prime focus in Sawant's address, with plans for new projects aimed at enhancing connectivity. The idea to amend the law to regularise unauthorised constructions up to 1,000 square metres in urban areas and 600 square metres in panchayat areas is ‘groundbreaking’. Other notable plans include the intent to improve governmental facilities, coupled with the announcement of ‘Skills on Wheels,’ a mobile initiative to provide vocational training to rural youth.
In its essence, the 2025 Goa budget encapsulates ambitions aligned with growth and fiscal prudence. However, the real test lies in the execution of these plans amidst relentless scrutiny from the public and a not-so-comfortable fiscal position. The effectiveness of financial strategies will be certainly tested, and so will the government’s intent. The upcoming financial year will undoubtedly test the mettle of the Sawant administration against the backdrop of this heavily outlined fiscal profile.
