Parsekar nearly dodged the query when he was cornered by Congress legislator Vishwajit Rane over the allocation of the central funds.
"I just want a categorical statement from CM that the fund was utilised for debt servicing or plugging fiscal deficit," Rane repeatedly told Parsekar during the Question Hour.
The Chief Minister, however, refused to reply to the question but instead said the money was spent on physical and social infrastructure.
Parsekar said the state has spent Rs 2,079 crore on social and physical infrastructure which is higher than the central government's fund allocation.
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"We have received Rs 1,054 crore from the central government as an untied fund which can be used in any of the schemes as per the requirement of the state," Parsekar told the State Legislative assembly.
The Chief Minister said the state has spent Rs 2,079 crore on various schemes related to the social and physical infrastructure of the state.
"We allotted Rs 330 crore for Dayanand Social Security scheme, Rs 180 crore for Grih Adhaar, Rs 120 crore for various scholarships and Rs 180 crore for subsidies in the Animal Husbandry, Tribal Welfare and others," he said.
He said the funds for physical infrastructure has been disbursed to various departments.
State Public Works Department was allotted Rs 525 crore, Power department (Rs 150 crore), Sewerage corporation (Rs 85 crore), Water Resources Department (Rs 102 crore), Goa Tourism Development Corporation (Rs 65 crore), Goa state infrastructure development corporation (Rs 220 crore) and land acquisition for National Institute of Technology (Rs 38crore), the Assembly was told.