NT Reporter
Panaji
After refraining from open market borrowings for the first five months of the current financial year, the state government has raised its first loan of Rs 100 crore through the issuance of market securities.
The loan carries an interest rate of 7.8% over 11-year tenure and is set for repayment in 2037.
While open market borrowings historically funded the gap between the state’s revenue and expenditure, the government reported zero market borrowings through August 31 of this year, pointing to effective debt management and strong revenue mobilisation. Furthermore, the state serviced Rs 1,103 crore in past loan obligations, covering both principal and interest, entirely from its own revenue resources.
Despite holding an authorised net borrowing limit of Rs 3,700 crore, the state chose not to issue bonds or securities during the first five months.
Official statistics highlight a shift toward fiscal prudence, as the government has actively replaced high-cost market borrowings with interest-free central loans.
Between April and August 31 this year, the state incurred Rs 338.5 crore in total debt. The vast majority – Rs 311.1 crore – was sourced through special assistance central loans for capital expenditure, which carry zero interest and a 50-year repayment window. The remaining Rs 27.4 crore was raised via two NABARD loans at a 4% interest rate to fund Water Resources Department projects, including initiatives in Calangute and the construction of twin barrages on the Chapora River to supply 250 MLD of raw water.
To further bolster state finances, the government is executing measures to boost revenue collection, curb tax evasion, tighten GST compliance and enhance non-tax revenue sources.
In 2025-26, the state generated Rs 20,281.2 crore in total revenue, consisting of Rs 14,788.1 crore in tax revenues and Rs 5,493.1 crore in non-tax revenue. For 2026-27, total revenue reached Rs 5,132.7 crore through June, with tax revenue contributing Rs 3,581.2 crore and non-tax revenue accounting for Rs 1,551.6 crore.
