NT Reporter Panaji
Goa’s outstanding public debt stands at Rs 33,956 crore as on March 31, this year. However, the debt to Gross State Domestic Product (GSDP) ratio is steadily declining and is expected to decrease further owing to prudent fiscal management, according to the
government.
Replying to questions tabled in the assembly by opposition MLAs Venzy Viegas and Yuri Alemao, Chief Minister Pramod Sawant, who is also the Finance Minister, said majority of the higher rate of interest loans have been restructured and brought down to less than 8%.
The state is borrowing only up to 50% or less of the available borrowing ceiling limit prescribed by the Union government thereby reducing the debt burden, said Sawant.
Majority of the capital works are now carried out through the Centre’s special assistance scheme for capital investment under which money is received as 50-year interest-free loan, thereby saving on the interest burden, he said.
Sawant said various measures have been taken to keep fiscal deficit within the limit prescribed under the Fiscal Responsibility and Budget Management Act (FRBMA) for the years 2023-24, 2024-25 and 2025-26. The measures include restricting expenditure within the budgeted revenues as well as restricting borrowing within FRBM limits and restructuring of high interest loans.
Sawant said the limit of loans and borrowing every year is prescribed by the government under Article 293(3) of the Constitution of India.
“The debt to GSDP exceeded the prescribed ceiling during the Covid-19 pandemic, viz. it reached 34.65% in 2020-21. Since then, the debt to GSDP has seen a continuous decline and currently has reached 29.27% and is expected to reduce further,” he said.
The total public debt comprises market borrowings, loans from institutions (NABARD, NCDC, LIC, PFC, HUDCO, NHB and EDC) and also central loans.
