No additional taxes; leg-up to green energy, smooth public transport; incentives offered for Rs 5000 cr investment; boost for edu, skilling; Rs 1,975.65 crore for PWD; steps announced to prevent revenue leakage
Special Correspondent
Panaji: Chief Minister Pramod Sawant on Wednesday presented Rs 28,162-crore budget for the fiscal year 2025-26 focusing on tourism infrastructure. No additional taxes have been imposed in the annual financial statement.
“The budget focuses on tourism infrastructure development,” he stated, adding that green energy, easing public transport, Clean Goa Green Goa, 100 per cent literacy, Swayampurna Goa and faster delivery of public services are some of the other focussed areas of the budget.
Sawant described the document as a ‘green budget’.
Revealing plans to develop new Mopa city under Mopa Airport Development Authority, Sawant informed about various tourism infrastructure projects such as wayside amenities, cruise terminals, aero tourism, oceanarium, and Chhatrapati Shivaji Maharaj Digital Museum to be taken up.
He also proposed to provide a tax holiday in the form of 50 per cent rebate on state GST, exemption in stamp duty and registration, waiver in other processing charges to investors who set up at least three star category or above hotel or hospital in the hinterland talukas of Bicholim, Sanguem, Canacona, Quepem, Dharbandora, Ponda and Sattari, in order to promote the tourism infrastructure in sectors of hotel and medical tourism.
Measures such as preventing revenue leakage, identifying fake beneficiaries of various schemes have been adopted by the government to make Goa a revenue surplus state.
He announced that a ‘vision document’ and an ‘action plan’ for making Goa a developed state would be released this year, and Goa would achieve the goal by 2037, a decade before 100 years of the Indian Independence.
Announcement of Dindi festival at Margao and Lairai Jatra at Shirgao as state festivals, and construction of New Goa Ram Niwas at Ayodhya as well as Goa Bhavan at Navi Mumbai are some of the many other highlights of this budget.
Stating that the Chief Minister Fellowship is to be extended to the private sector for Goans carrying out research and development in multinational companies operating in Goa, Sawant said the Mukyamantri Kaushalya Sahay Yojana will be providing accessories and kits to students pursuing skill courses.
The implementation of Unified Pension Scheme was also announced for government staff thereby assuring them 50 per cent of average last pay, family pension, assured minimum pension and other benefits.
Sawant made a provision of Rs 1,975.65 crore for public works department, and Rs 801.48 crore for the newly formed drinking water department. A provision of Rs 857 crore was made for the health department, Rs 993 crore for Goa Medical College, Rs 217.50 crore for State Cancer Institute and Rs 125 crore for Allied Health Sciences College as also hostel for 200 medical students. Furthermore, the electricity department has a provision of Rs 4,131.15 crore in the budget, while a provision of Rs 339.79 crore was made for the transport department.
The construction of green corridor along national highways and common utility ducts (CUD) for new roads was also announced, with the CUD carrying water, power, broadband and sewerage lines, due to which the hotmixed roads would not be permitted to be dug for the next five years.
The budget further included provision to increase the remuneration to anganwadi workers, as also creation of employment for additional 4,000 people through Goa Human Resource Development Corporation in the field of security, with the scope of the Corporation expanded by catering to private sector.
Sawant announced the renaming of the department of labour and employment as department of human resource development by allocating it Rs 107.33 crore.
It was also proposed to launch a dedicated job portal, which would enable all companies in Goa to post their job vacancies on the portal and also allow Goan candidates to receive exclusive access to all the openings for the first seven days, thus ensuring that the local talent gets the first opportunity.
A Global Capability Centre has also been proposed at Verna in the state budget for IT and startups, through private partnership.
As regards mining of minor minerals, Sawant in the budget speech informed that 12 zones have been identified for sand extraction in the Zuari and the Mandovi, with a total 185 applications received and environmental clearance granted.
Once CRZ permission is received, the permits would be given for 70 per cent traditional and 30 per cent non-traditional miners. The government has already increased the validity of lease from the existing five years to 30 years for all the fresh grants and renewal of leases, in such mining.
Sawant mentioned that in the sector of mineral ore mining, two mineral blocks have started operations, while two more would do so in two months’ time.
“Besides three mineral blocks have received environment clearance and it is proposed to auction additional nine mining leases soon,” he added.
The government later sought Vote on Account for the year 2025-26 in the midst of chaos as the Opposition MLAs were not allowed to speak on the same. The Opposition legislators also rushed to the well of the House.
Sawant, who also holds the finance portfolio delivering a 2.20-hour budget speech, said, “In the financial year 2025-26, there is heavy repayment of principal amount of Rs 1,504 crore of open market borrowings done ten years earlier, which is an additional Rs 704 crore rise from the repayment of Rs 800 crore done in the financial year 2024-25.
“The gross state domestic product (GSDP) at current prices for the year 2025-26 is projected at Rs 1,38,624.86 crore with a growth rate of 14.27 per cent,” he added, pointing out, “Goa’s per capita is projected to be Rs 9.69 lakh for the year 2025-26, portraying a robust and healthy economy.”
The Chief Minister said the government was able to get ‘special assistance for capital investment’ to the extent of Rs 1,520 crore from the Centre in the financial year 2024-25, which is the highest in the history of the state government.
“The same trend is expected to continue in this financial year also,” he noted.
“We have ended the financial year 2023-24 on revenue surplus of Rs 1,423 crore and have been able to achieve majority of the targets set under the Fiscal Responsibility Budget Management Act,” he said.
He said that the revenue expenditure is Rs 20,299 crore and capital expenditure is Rs 7,863 crore.The estimated receipts for the financial year 2025-26 are projected at Rs 27,993.97 crore showing a rise of 13.02 per cent over revenue expenditure for the fiscal 2024-25
“The revenue surplus is projected at Rs 2,403 crore in the financial year 2025-26,” he maintained, mentioning that further the ratio of the total outstanding debt to GSDP has also seen a declining trend due to strict debt sustainable policy adopted by his government.
On borrowing, he said, “This year we have borrowed only Rs 1,050 crore as on date from the open market as against the limit of Rs 4,500 crore,” noting that the fiscal deficit for the financial year is estimated to be Rs 2,826.44 crore, which is well within the limits prescribed by the 15th Finance Commission.
Later replying to a question during a press briefing, Sawant said the government will collect revenue through revenue receipts, grants from the central government and state earned taxes.
He also informed that excise duty would be rationalised by reducing the number of related slabs to a maximum of 5.
“We have also proposed single-point taxation for liquor,” he maintained, adding that hologram markers would be attached on packed alcohol bottles, and excise duty rates notified on yearly basis henceforth.
