PANAJI: The fiscal policy of Goa, although both in the norms specified, still requires “borrower payment strategies” well thought out to prevent debt traps, administrative words and auditors of India (CAG) in the State Financial Audit Report for 2019 -20.
While acknowledging the efforts of the state government to contain a fiscal deficit below the 3% threshold, CAG also gave a slap government to the wrist to dress windows from the country’s fiscal profile through off-budget loans and delays of retirement payments.
Audit CAG confirms open secrets that state government has played with fiscal numbers and parameters.
“The Short State Government of Rs 138.5 Employee Crore and government contributions to NSDL with a defined contribution scheme for 2019-20, thus shrinking the income deficit and fiscal deficit so far,” said CAG.
The audit report, which was submitted in the State Legislature Council on the last day of the last session, was also marked by red from the Fiscal Operation off-budget conducted by the state.
RS 919 Crore was borrowed in 2019-20 through off-budget loans, which enabled the government to shrink the overall debt of 1.1% of GSDP.
“Furthermore, taking into account the state budget loans, the total debt at the end of March 2020 worked at RS 23,473 Crore as against RS 22,554 Crore which was shown in a financial account,” said the CAG report.
CAG said that the Pramod Sawant Government had taken steps for “better fiscal management”, but at the same time, warned that state governments need to increase the circulating ratio of debt-GSDP (domestic country products), which reached 28% .
In 2019-20 as a close 25% specified in the fiscal responsibility of Goa and the Budget Management Law.
In the analysis of Goa’s debt profile, CAG said that the government payment schedule would emphasize state finances in the next seven years, because 51% or 8,667 crore Rs must be repaid during that period.
“Therefore, the state government must overcome the loan payment strategy well thought out to avoid falling into the debt trap,” said the report.
“The state needs to be a revenue surplus state according to the target given in the Frbm Goa Act.” According to the CAG report, the cave fiscal deficit is 2.5% for 2019-20.