PANAJI: MGP MLA Ramakrishna ‘Sudin’ Dhavalikar cautioned the government about the rising debt trap, particularly the tendency to borrow loans for payment of salaries and repay loans. Dhavalikar said that market loans should be taken for capital expenditure requirements and not to meet committed expenditure requirements.
The Marcaim MLA and former PWD minister, using data provided by the government, pointed out that less than 45% of the budgeted capital expenditure is met.
“I have no problem in borrowing money but does the money reach the projects for which they are meant for? More than half of the borrowings are going towards repayment of loans and paying salaries,” Dhavalikar said while speaking during the discussion on the motion of thanks to the governor’s address.
“Only 20% goes for capital works,” said the MGP MLA as he reeled off numbers on capital expenditure for each department.
Dhavalikar blamed the government’s policies for the reduction in revenue and the dependence on market loans to meet regular expenditure. Referring to the one time settlement schemes and tax waiver schemes brought in by the government, Dhavalikar said that over the last few years, revenue income has been on a downward slide.
“The government’s financial situation will continue reducing if the government keeps coming out with schemes to reduce revenue. At this rate, the government will have to keep borrowing to meet revenue needs,” Dhavalikar further said.
He also questioned the BJP government’s seriousness in mining resumption, saying that the chief minister has made several assurances which never fructified.
“Even if you take a look at the governor’s speech last year, not a single thing has been completed and now I expect the same from this governor’s address,” Dhavalikar said.