"Goa Utilizes Over 40% of Maximum Borrowing Limit for Development Projects in 2023-24"

In response to a prevailing financial crunch, the Goa state government has surpassed 40% of its maximum borrowing limit for the financial year 2023-24, securing funds amounting to Rs. 300 crore from the market over the last 15 days. This borrowing spree, totaling around Rs. 1,500 crore from April to November, is intended to sustain capital expenditure for ongoing developmental projects, given the state's borrowing limit of Rs. 3,500 crore for the fiscal year.

A senior official emphasized that the borrowing was necessitated by limited revenue generation during the period, and the state was committed to avoiding interruptions in the progression of ongoing projects. The official expressed optimism regarding an anticipated boost in revenue generation with the commencement of the tourism season, indicating a potential reduction in the need for continued borrowing.

Furthermore, the official highlighted the absence of Goods and Services Tax (GST) compensation this year as an additional factor influencing the borrowing decision. In contrast, the state received Rs 1,300 crore as GST compensation last year. The official noted that in the previous fiscal year, the state borrowed over Rs 1,300 crore through the open market when the borrowing limit stood at Rs. 3,000 crore.

ET