Fiscal Responsibility and Budget Management bill introduced in Goa
Panaji, Mar 22 (UNI) The Goa government has introduced ''Fiscal Responsibility and Budget Management Bill'' to put its fiscal position on sound footing.
Presenting his budget for the year 2006-07 in the State Legislative Assembly today, Chief Minister Pratapsinh Rane said the revenue deficit was low and fiscal deficit is just above 5 per cent of the Goa State Domestic Product (GSDP).
The bill would be a ''landmark initiative'' in the light of the 12th Finance Commission recommendation that all states should achieve ''zero'' revenue deficit, Mr Rane said.
This, he said, would enable the states to become eligible for ''debt relief'' and ''debt write-off'' incentives if they achieved the objectives through prudential fiscal management to meet the recommendations of the Finance Commission.
He also stated that the State was constrained not to avail low cost funds from debt instruments like SLR based borrowings and NABARD with accruals from the 9.5 per cent debt instrument of National Small Savings Fund pouring in excess of requirement.
With the NSSF attracting high rate of interest, people have been investing in the small saving instruments in a big way, Mr Rane pointed out.
UNI BM RL VP0006