The Goa Pradesh Congress Committee has alleged that State government is adding more woes in financial crisis by borrowing additional loan of Rs. 446 crore and has dared Chief Minister Dr. Pramod Sawant to prepare for a public debate over Goa’s financial condition by accepting the challenge. GST dues is our right and we should not surrender before central Government.
“This government is taking people of Goa for granted. This has resulted into total liabilities touching to 25,000 Cr and about per capital liabilities of Rs. 1,50,000/- on Goans. Why should people suffer for the financial mismanagement and financial illiteracy approach of Mr. Sawant?.” GPCC President Girish Chodankar questioned.
“This government very well knows that it has failed on all aspects of financial area. Hence, it is not ready to come up with white paper, despite Goans demanding it.” Chodankar said.
Chodankar while reacting to central governments decision to allow Goa to borrow Rs 446 cr to compensate GST, said that one shouldn’t rejoice about it as our total liabilities have touched 25,000 Cr.
“Why people of Goa should pay for misdeeds of Modi Government? The Central Government has failed to pay GST compensation to the states, it was the Central Government who should have borrowed money to pay the states. Most of the states who accepted the Central Government’s forced proposal are either BJP governments or alliance of BJP in the centre. Moreover, for big states like Maharashtra or Karnataka it is easier to borrow money from the market unlike small states like Goa which will be further burdened by the undue pressure on the tax payers.” He pointed out.
Chodankar further said that the Goa State Government has failed to understand this or did it knowingly
to save itself from the heat of Modi lead Government in Centre.
“Such meek submission will result into shattered state of economy in Goa. The party at the Centre like the party in the State has turned the country fully debt ridden.
Central public debt ratio that was stable at around 70 percent since 1990 is now at around 90 percent, and with fiscal deficit crossing its limit the country is on a verge of economic collapse.” He said.
“Chief Minister has brought his weaknesses and lack of capabilities in fore by always taking wrong steps. Goa Government has surrounded itself to central government.” He said.
He said that the idea of borrowing shortfall money arising out of GST compensation will have long term repercussions on the economy of the Goa. The Goa State Government accepting this proposal is equally responsible for the upcoming trouble times for Goa.
According to Chodankar the onus is on the Centre for the various reasons:
• Central Government has more options to borrow money from the Reserve Bank of India like issue of a sovereign bond (in dollars or rupees) or a loan against public sector unit shares. State Government don’t such feasible options.
• Central Government can borrow money from the market at much lower rates as compared to State Government.
• Combating this recession through increased fiscal stimulus is basically the job of macroeconomic stabilization, which is the Centre’s domain.
• Most importantly, breaking this important promise, using the alibi of the COVID-19 pandemic causes a serious dent in the trust built up between the Centre and States.
“Congress strongly opposes to the idea of borrowing shortfall in GST. We demand that Goa Government should ask central government to release our dues immediately.” Chodankar said.