Govt borrowings at 30 pc through bonds as of Sept

PANAJI
The Goa government has borrowed almost 30 per cent of its full-year target in the first half (April-September) of the on-going financial year, through bonds alone, to fund the revenue gap to boost economic and development growth. As on September 30, government raised a total of Rs 900 crore through auction of government securities, while another Rs 100 crore are lined up for auction this month.

This is despite the fact that the State managed to generate over Rs 11,000 crore revenue during the six months excluding tax devolution funds received from the Centre to the tune of Rs 1,220 crore in two instalments released in June and October.

While from April to August, security bonds worth Rs 500 crore were auctioned, in September alone, the State borrowed Rs 400 crore while another Rs 100 crore are in pipeline for auction in the last week of October, before Diwali festival.

During a finance review meeting held on Tuesday, the Chief Minister Pramod Sawant has directed all the concerned departments to ensure that payments under various welfare schemes and other dues are cleared before the upcoming Diwali festival.

After selling around Rs 1,750 crore security bonds in the last fiscal, Goa was left with security bonds of  Rs 990 crore, whose maturity estimated as per Reserve Bank of India is Rs 18,014 crore by 2038.

In a bid to meet the revenue and expenditure gap, the State was bound to borrow funds for the developmental works and also towards salaries, pensions and other welfare schemes, sources said adding that the borrowing limit fixed for this fiscal is at Rs 3,500 crore.

Sources also said that with the Centre yet to release funds for the 18th Exposition of St Francis Xavier, the State will have to shell out money from its own exchequer to meet the infrastructure demands.

To bridge the income-expenditure gap (fiscal deficit), the State borrows from the market through the issue of bonds known as State Development Loans (SDLs), which form a major part of its total outstanding liabilities.

According to the Budget estimate, the State is expected to borrow around Rs 2,835 crore for the FY 2024-25, while it is expecting financial assistance to the tune of Rs 1,500 crore from the Centre. The revenue expenditure of the State is proposed at Rs 19,888 crore that includes expenditure on salaries, pensions, interest, grants and subsidies.

Last year, the State borrowed around Rs 2,000 crore while before that it was over Rs 1,300 crore through the open market while the borrowing limit was Rs 3,500 and Rs 3,000 crore, respectively.