Goa to borrow from state PSUs for development expenditures

PANAJI: In a bid to reduce its liability to the Centre as well as to cut borrowings from the market, the Goa government has decided to borrow from state-owned public sector units for planned and unplanned expenditures.

The state government has asked for a Rs 200-crore deposit from the Economic Development Corporation, the Goa Industrial Development Corporation and Goa InfoTech Corporation; all of which have registered good profits this year. “We will use this money for development, these are state owned profit making bodies,” state chief minister Pratapsing Rane said. The government’s borrowings are currently in the region of Rs 1,200 crore, of which over Rs 600 crore are market borrowings. The Economic Survey 2006-07 notes the state’s total outstanding debt is Rs 3,087 crore. This has risen 36% against the average of 25% in earlier years.

Even as the state aims for a nil growth in fiscal deficit, it has plans to set up projects in the Public-Private-Partnership (PPP) model. For example, it has signed a contract with DLF to set up an International Convention Centre and has plans for an Oceanarium, a North-South Expressway and a hydel power station. Feasibility studies are underway for most projects. Deposits from state-owned bodies are expected to facilitate development and improve developments of roads, lighting and sanitation.