Goa's borrowings within FRBM limits, used for capital works: CM Sawant

Panaji, Jan 14 (PTI) Goa's borrowings over the last five years have remained within the Fiscal Responsibility and Budget Management (FRBM) Act limits and have been utilised for capital works, the legislative assembly was told on Wednesday.

Replying to a starred question tabled by Leader of Opposition Yuri Alemao during the ongoing winter session of the House, Chief Minister Pramod Sawant said the government's loans were not used for payment of salaries or pensions.

He also placed on record details of the state's annual interest payment obligations during the current financial year, the highest rate of interest, weighted average borrowing rate, and the total principal amount repaid, along with a break-up of outstanding debt across interest rate brackets.

On compliance with the FRBM Act, the chief minister said the government fulfilled three of the four fiscal targets prescribed under the legislation.

"Only the debt-to-GSDP ratio is above the fixed target. However, the same is declining post-COVID period," said Sawant, who holds the finance portfolio.

He said the debt-to-GSDP ratio stood at 34.63 per cent in 2020-21, which declined to 32.55 per cent in 2021-22, 30.55 per cent in 2022-23, 29.27 per cent in 2023-24 and further to 27.05 per cent in 2024-25.

The chief minister asserted that the improving trend reflected the state's efforts towards medium-term fiscal sustainability.

The Debt-to-GSDP (Gross State Domestic Product) ratio compares a state's total public debt to its GSDP, showing its ability to pay off debts. A lower ratio indicates better fiscal health, while a higher one suggests greater risk, helping gauge the state's economic stability and capacity for future borrowing. PTI RPS NSK