The Hindu Business Line : ‘Excise, VAT collections have made Goa a surplus State’

A senior Congress leader who has held several Ministerial positions over the years, Finance Minister Mr Dayanand G. Narvekar, of the Congress, prides himself on having turned Goa into a surplus State this fiscal. He also holds the Information Technology portfolio.

How are you managing the finances?

In Goa, the Finance portfolio is usually held by the Chief Minister who may not have the time to study each and every project carefully. By taking over the Finance portfolio, I am doing justice to the State’s finances. Let me tell you that Goa this year has already turned into surplus. We have been carefully monitoring the deficit levels and targets given by the Finance Commission. The credit for turning the State into surplus primarily goes to buoyancy in the collection of Excise and VAT. Even the funding to State corporations and bodies is now strictly evaluated and assessed by Budget officials. We have a special officer from the RBI on deputation to head the fiscal responsibility unit.

As a result of the better economy management, we have got additional Central assistance of around Rs 65 crore for the last two years. Government spending on a number of social services and social security schemes is on the rise. Moreover, the Government has been able to pay much ahead of schedule some of its debts along with interest. The Finance Department has implemented a policy of repaying high interest loans and such debts are restructured and swapped. This means a reduction in our long-term debt-servicing liability.

The 12th Finance Commission wanted the State to move towards zero deficit by 2006-07. We have achieved it.

Let me also tell you that I do not believe in asking for charity from the Centre. We want the Centre to recognise that Goa is a leading international destination which has to keep its infrastructure and facilities updated to attract high-spending tourists. Goa brings huge foreign exchange from tourism and mining exports. And both these sectors need enormous spending in terms of infrastructure. Therefore, we have worked out a proposal asking for funds for infrastructure projects from the Centre by seeking a special category status for Goa in terms of tourism and mining. I have been working to mobilise additional resources through measures like revising rates on excise on beer and imported IMFL. I have also decided to take advantage of the reduction of import duty on liquor brands due to liberalisation; to tax them when they enter the State. Our revenue from Excise has risen to around Rs 60 crore per year after stagnating for over four years.

What about the IT projects?

Our broadband connectivity programme, which will follow the public-private partnershipmodel, is operational. By the end of March 2008, all the households in Goa would be connected with 2-10 Mbps connectivity. All Government, semi-Government organisations and corporations will also be provided 1 Gbps connectivity. This would open up income generation opportunities for citizens.

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