Goa's fiscal parameters improved under CM Pramod Sawant post Covid yrs: CAG

In an important achievement for the Sawant government, the CAG stated the state has succeeded in improving fiscal parameters like revenue, fiscal and primary deficits etc., compared to last four yrs

The CAG has appreciated the Pramod Sawant government's efforts in improving fiscal parameters, including increasing revenue surplus and bringing down fiscal deficit to GSDP ratio in the post-Covid years.

A report of the Comptroller Auditor General (CAG) till March 31, 2023, was tabled during the just-concluded session of the Goa Legislative Assembly.

In an important achievement for the Sawant government, the CAG stated the state has succeeded in improving fiscal parameters like revenue, fiscal and primary deficits etc., compared to the previous four years.

The report focused on the achievements of Chief Minister Sawant and the Finance Department team in improving the health of state finances very effectively post the Covid pandemic.

 

The analysis of the report makes it clear that Sawant has been a very effective Finance Minister and achieved a majority of targets under the Fiscal Responsibility and Budget Management (FRBM) Act and Rules.

The report pointed out tremendous improvement in state's fiscal parameters in Sawant's term as finance minister post the disastrous Covid period, indicating Sawant strengthening his grip on state finances.

The fiscal management efforts by the state government have been appreciated in the CAG report.

The state government enacted the Goa Fiscal Responsibility and Budget Management Act, 2006, to ensure fiscal stability and sustainability in the state finances with amendments in due course of time.

The FRBM targets were to be achieved through progressive elimination of revenue deficit, planned reduction of fiscal deficit and prudent and sustainable debt management, including off-budget borrowings, and achieving greater transparency in the fiscal operation of the government.

This Act provides fiscal management principles by which the state finances should be governed and fiscal management targets that the government should work to achieve.

The state government has managed to increase its revenue surplus exponentially from Rs 59 crore in FY 2021-22 to Rs 2,400 crore in FY 2022-23, indicating a strong revenue base to meet its committed expenses, the report stated.

"The actual fiscal deficit to GSDP ratio witnessed a decreasing trend over the last two years from 3.18 per cent to just 1.13 per cent, indicating that the government has borrowed very less to meet its expenses," the CAG stated.

The state government has reduced the outstanding guarantees from Rs 662 crore in FY 2021-22 to Rs 405 crore in FY 2022-23, indicating that the debt burden on corporations/autonomous bodies has also been reduced by the government.

The CAG report indicated that although the ceiling of outstanding debt to GSDP ratio of 25 per cent has been exceeded, the ratio has registered a decline from 33.21 per cent in FY. 2021-22 to 31.57 per cent in FY 2022-23. This is a positive sign that the rate of increase of state debt has been reduced in the last two years.

Sawant has successfully and effectively managed the state finances.

Three out of four targets under the FRBM Act have been achieved and another goal of total debt to GSDP ratio, although missed, is showing a decline, indicating improvement.