Main Features of Budget of Goa

by

Main Features of Budget of Goa

The GSDP at constant (2011-12) prices for the year 2015-16 (Quick Estimates) is estimated at above 37,520 crore as against 34611 crore in the year 2014-15 thereby reflecting a growth of 8.41 percent as against 9.64% in 2014-15.

Growth rate projected an 11% growth in the GSDP(Gross state domestic product) during the next fiscal year. According to reports, central funding during the last fiscal year had risen three-times to Rs 3224.61, which is 22.4% of the net state budget.

Sectoral contribution towards gross domestic product of the state shows that industry and services sector together provides over 90% to GSDP. As per the Quick Estimates of GSDP for the year 2015-16 (Quick Estimates) at constant prices, primary sector accounted for 6.88 percent, secondary sector for 46.45 percent and tertiary sector accounted for 46.67 percent. The Primary sector which accounted for 21.52 percent during 2011-12 declined to 6.88 percent during 2015-16(Q). Similarly, the composition of secondary sector which was about 47.23 percent during 2011-12 has come down to 46.45 percent during 2015-16 (Q) However, the composition of tertiary sector gradually increased from 31.25 percent in 2011-12 to 46.67 percent in 2015-16 (Q).

Per Capita Income : Goa’s per capita income was RS 2,71,793, which was one of the highest among all states.

Government has provided a revenue surplus budget and so increases the size of the budget. Government presented a revenue surplus budget of Rs 202 crore which has an estimated revenue of Rs 10,872 crore and expenditure of Rs 10, 670 crores.

The size of the budget has been increased to Rs 16,270,  a number which is significantly higher than the Financial year 2016-17 budget of Rs 14, 694 crores.

Total Receipts

The total receipts (Revenue + Capital) were estimated to 11,853.51crore (B.E) for the year 2016-17, comprising of revenue receipts of 9,361.96 crore (B.E) and capital receipts of 2,491.55 crore (B.E). The total receipts estimated for the year 2016-17 is 16.60 percent less than the Revised Estimates of 2015-16.

Total Expenditure

The total expenditure (Revenue + Capital) estimated for the year 2016-17 is 13,111.19 crore (B.E), comprising of revenue expenditure of 9,203.14 crore (B.E) and capital expenditure of 3,908.05 crore (B.E).

Revenue Receipts of the State comprise of Share in central Taxes, Grants–in-aid from Central Government, State’s Own Tax Revenue and State’s Own Non tax revenue.

Revenue Expenditure

Revenue Expenditure can be classified into Plan and Non-Plan expenditure. The annual compound growth rate of revenue expenditure works out to be 16.63 % during the period 2012-13 to 2016-17 (B.E).

Capital receipts

Capital receipts are broadly classified into four major groups i.e internal debt, loans and advances from central government, non-debt capital receipts and public account – net (i.e. receipts from public account minus expenditure under public account).

Capital Expenditure

Expenditure incurred under Plan for development works and debt repayment constitute around 99 percent of the capital expenditure incurred by the State. The capital expenditure is showing an increasing trend. Capital expenditure which was 1,285.11 crore during 2012-13 increased to 1,804.39 crore during 2014 -15 and further to ` 3,354.46 crore during 2015-16 (RE).

Revenue Deficit

During the years 2012-13 & 2013-14, revenue deficit to the tune of (-) 215.92 crore and (-) 353.51 crore was observed in the State. However, the situation improved during the year 2014-15 where the State experienced revenue surplus of 278.44 crore. The Revenue deficit amounting to (-) 137.09 reoccurred during 2015-16 (RE). The Revenue Surplus for the year 2016-17 (BE) is expected to be 158.82 crore.

Fiscal Deficit of the State shows an increasing trend. Fiscal Deficit which stood at (-) 1,137.36 crore in 2012 – 13 increased to (-) 1,369.87 crore in 2013 -14.

Primary Deficit stood at (-) 336.65 crore during 2012-13 increased to (-) 479.21 crore during 2013-14. It is interesting to note that Primary surplus was observed in the State during 2014-15 amounting to 58.92 crore.

Budget proposals to different sectors

Agriculture : 6 per cent growth in agriculture has been projected. Rs 172 crore has been earmarked for the sector. He proposed a scheme to promote commercial cultivation of mangoes and said emphasis would be given to horticulture and floriculture. To boost sugarcane cultivation, the budget proposed Rs 10,000 per hectare subsidy to farmers. Education : To encourage education in mother tongue, Government allocated Rs 6-crore additional grant for schools imparting education in Konkani and Marathi. Also, 50 more school counsellors will be recruited.

A sum of Rs 50 crore was earmarked to clear backlog of students who did not get laptops under the Cyber Age project, adding 3.6 per cent of the GSDP would be spent on education.

Various Security Benefits : Financial benefits under flagship programmes like Dayanand Social Security Scheme, Grih Aadhar and Ladli Lakshmi would be linked to inflation. The government would study the impact of these schemes. The CM proposed Rs 900 crore for social sector, Rs 475 for women and children and Rs 190 crore for tribal welfare.

Public Works : Allocation for public works department was raised by 40 per cent to Rs 1,900 crore.

The government allotted Rs 105 crore for hosting upcoming matches of U-17 FIFA World Cup and 2018 National Games 2018.

Government also aimed to make Goa kerosene free. For this LPG connection to all families will be provided to make Goa kerosene-free.

The aim of the government is to make garbage-free Goa by 2020 and the first step towards this would be to ban plastic below 40 microns completely from the state of Goa and heavy penalty will be levied on the seller as well as the user of these plastic bags

There is proposal in the budget to implement the Public Services Act fir the introduction of a voluntary retirement scheme for government employees.

The Chief Minister also proposed Rs 900 crore for the social sector while women and children receive Rs 475 crore. Tribal welfare sector also receives Rs 190 crores. The government also proposed Rs 105 crore for the U-17 FIFA World Cup and 2018 National Games 2018.

States’s budget was mostly focussed on education and the agriculture sector. While certain flaws can still be found in the budget it is mostly a developmental budget focussed on populist policies.

New Tax Proposals in the Budget

Value Added Taxes

The registration, including its renewal, under VAT and other Commercial Taxes is for a period of three years. With the Goods & Services Tax (GST) expected to be rolled out by 01st July; the registration under VAT and other Commercial Taxes will not be valid for the dealers, other than petroleum products and liquor. To provide some relief to all such dealers, provision is provided  to waive off the renewal fees as applicable.

To further promote  green initiative, there is proposal to exempt VAT on sale of electric vehicles.

Excise

There is new proposal to levy an additional fee of 1,00,000/- to the manufacturer of high bouquet spirits who imports Concentrated Alcoholic Beverages, for the purpose of sales to other manufacturers; within or outside the State. An export fee of 10/- per bulk litre will be levied on the sale.

Registration of an old four wheeler, which is more than 15 years old, is cancelled. A new proposal to allow adjustment of the Road Tax paid on the old vehicle against registration of a new vehicle has been proposed.

Casino Fees

There is need to revise the fees for renewal of license, annual recurring fees and fees for transfer of license; for land based and off-shore casinos.

 

Final Destination for Goa PSC Notes and Tests, Exclusive coverage of GPSC Prelims and Mains Syllabus, Dedicated Staff and guidence GOAPSC Notes brings Prelims and Mains programs for GOAPSC Prelims and GOAPSC Mains Exam preparation. Various Programs initiated by GOAPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––