"We are going through a hard phase. We have taken a big hit after the closure of mining activity," state Chief Secretary B Vijayan told a gathering of bankers in Panaji today.
"The total impact on the state's treasury due to mining closure is Rs 800 crore," he said, adding that 20 per cent of state's revenue resources are generated from the mining activity.
The state had to postpone few of its expenditures for next fiscal due the shortfall in revenue collection, he said.
Addressing the state credit seminar organised by NABARD (National Bank for Agriculture and Rural Development), he said the state has witnessed a huge hit due to closure of the mining activity.
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"We are also witnessing the fallout of the mining closure in the form of lesser Value Added Tax (VAT) collections," Vijayan said.
The extraction and transportation of ore was halted in the state in September last year by Supreme Court pending report from the Central Empowered Committee (CEC).
"We have succeeded in cutting down wasteful expenditure, while some is postponed for next fiscal," the chief secretary said.
The state government has tried to plug leakages on the expenditure and revenue side. "The e-governance in the tendering process has also yielded results, with all the tenders being quoted below the estimated price," he added.
Projecting that during the next fiscal expenditure will remain same, he said the state government is looking out for alternate sources of generating revenue.