‘Will take state’s GSDP to Rs 1 lakh crore by next year’

PANAJI: With little space for fiscal maneouvering, chief minister Pramod Sawant , in his maiden budget, moved to make alcohol and property more expensive in Goa. The increase in tax rates is expected to yield Rs 250-300 crore additional revenue, which would be used to complete ongoing infrastructure works in the state.On Thursday, in a marked departure from the past two budgets where tax structures remained untouched, Sawant was forced to bite the bullet and hike excise and stamp duties. Sawant also announced that land prices in the state, which were last revised in 2013, would be increased to match the true market value of the property rates.“Goa has a limited tax base through which revenue can be augmented. However, I am taking special efforts to plug the leakages and improve efficiency in tax collections,” said Sawant, who also holds the finance portfolio, in his budget speech for 2020-21.Among the steps taken to plug tax leakages, Sawant has increased the excise duty on beer and Indian made foreign liquor (IMFL) which includes rum, blended whiskey and beer. Most crucially, the government has also increased the excise duty on feni, which will make the heritage drink pricier by Rs 100-Rs 200, depending on the retail selling price of the bottle.Those who love their cold beer will also find that they have to shell out Rs 5-Rs 15 more for their favourite pint.Along with excise rates, Sawant increased the conversion fees under the Land Revenue Code, while also rationalising the categories of land on which the conversion fees would be charged. Sawant also announced an increase in the value of stamp duty for affidavits from Rs 50 to Rs 100.“We have increased taxes marginally, but we have ensured that the common man does not feel any economic burden… is not troubled. Some excise duties and fees, stamp duty have been increased, land rates have been revised and conversion fees and court fees have been increased by a minimum amount,” Sawant said.Officials with the excise department expect to earn over Rs 100 crore from the hike in excise duties, while the increase in other taxes is expected to yield the state Rs 150 crore.The move did not sit well with Goa Chamber of Commerce and Industry. “The increase in licence fees for liquor outlets and bars and restaurants will affect tourism. While the real estate sector is already under stress, the increase in land rates and the corresponding increase in stamp duty will result in hiking real estate prices,” said GCCI president Manoj Caculo.Sawant chose not to announce any new infrastructure projects and instead focus on completing the 50-odd infrastructure projects that are ongoing in the state.While Sawant kept resumption of mining and tourism as the priorities for the state, he also said that Goa’s economy needs to diversify away from these traditional sectors. “The state can be developed into an educational and health hub... I would like to take Goa’s GSDP to Rs 1lakh crore by next year,” he said.The budget for the coming financial year projects a revenue surplus of Rs 353.6 crore with the total budgetary allocation being pegged at Rs 21056.4 crore, as against Rs 19548.7 crore in 2019-20. Sawant expects to spend Rs 14,906.3 on revenue expenditure, while Rs 5,069 crore will be spent for capital works in the state.Highlighting the financial constraints of the state, Sawant said that 36.9% of the state’s earnings go towards salaries, wages, pension, gratuity and grant-in-aid, 2% goes towards subsidies and 12.7% goes towards debt repayment.“Only 28.5% remainder amount is to be utilised towards developmental works and maintenance of existing infrastructure,” Sawant said.