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Manohar Parrikar's induction as defence minister has raised hopes because of his record as chief minister of Goa. The record is mixed. In his first term as chief minister, Parrikar did manage to improve the financial health of the state, but his second term from 2012 was not impressive.
Goa had the country's highest per capita income in 2001-02, nearly two-and-a-half times the national average. In 2004-05, the average income of a Goan was over three times the national average. Per capita income in Goa grew 74 per cent in this period against the national rate of a little over 35 per cent.
This roughly coincides with Parrikar's first tenure as chief minister of Goa from October 2000 to February 2005. The state's debt burden eased and revenue collection improved, resulting in better fiscal health. On all these parametres, Goa not only bettered the national average, but was ahead of other states of comparable size like Himachal Pradesh and Uttarakhand. (A LOOK AT GOA AND OTHER STATES)
Goa's fiscal indicators showed gradual improvement under Parrikar, but there was no visible pattern in Uttarakhand and Himachal Pradesh. All three states have grown rapidly in recent years and are tourist destinations.
"Parrikar is seen as someone who focused on plugging the revenue leakage and coming out with innovative pro-people schemes," says Pramod Acharya, editor of local TV channel Prudent Media. The state's revenue deficit as percentage of GSDP fell from an average of 2.6 per cent during 2000-2003 to 0.6 per cent in 2004-05 and the fiscal deficit from 5 per cent to 3.9 per cent.
Nearly 40 per cent of Goa's revenue comes from tourism and mining. In four years from 2001 tourists to the state almost doubled from 1.4 million to nearly 2.5 million. What helped tourism was Parrikar's insistence on building infrastructure, say analysts. "His priority in the first term was clear. He wanted the economy to grow faster, and preferred development over everything else," says Prabhakar Timble, a Goa-based political analyst.
Goa did register growth in subsequent years too. But its performance premium started shrinking. From 2005-06 to 2008-09, Goa's growth in per capita income was only somewhat better than the national average-60 per cent for Goa against 50 per cent for the entire country.
"Parrikar is seen as a doer, a decisive leader and a leader with a clean image," observes Rahul Tripathi, professor of political science at Goa University. A case in point, he says, is the hosting of Lusofonia Games, similar to the Commonwealth Games where Portuguese-speaking nations participate. Goa won the bid to host the games in 2009 but nothing was done for three years to set up sporting infrastructure. This was done in less than a year during Parrikar's second term, Tripathi adds.
"What sets him apart is his work ethic. He makes it a point to supervise work himself, even if that means working late night or early morning. And there is no compromise with the quality of work," says a Goa-based journalist who does not wish to be named. But Parrikar could not build on the gains of the first term. Barely six months into his second term, a mining ban hit the state economy. Goa is estimated to have suffered a revenue loss of Rs 3,000 crore as a result. A decision in 2012, to reduce the value added tax on cooking gas cylinders, diesel and petrol, caused a revenue loss of Rs 41 crore a year to the state exchequer. "The impact of the mining ban not only resulted in a direct revenue loss, it led to job losses that had an adverse impact on state finances," observes Silvia Noronha, professor of economics at Goa University.
The state's per capita income, as a result, fell and its revenue and fiscal deficits climbed, making it difficult for Parrikar to do much on the developmental front. "His priority seemed different in his second innings. It was more towards political management," observes Timble. Crucial economic issues fell off his radar, he adds. Observers say with the Supreme Court lifting the ban in April, the state is yet to see a resumption of mining. Things could have been expedited, especially when the state suffered so much because of the ban, argues Timble. Business Standard reported earlier this week that the state government may be able to complete renewing mining licences by March. So far only 13 licences have been renewed. Resumption of full-scale mining will have to wait.
Parrikar is also credited with new schemes to improve governance. All government procurement worth more than Rs 5 lakh are now tendered online. The state government is set to install unmanned surveillance cameras on all major roads, junctions and places of importance.
