Current Affairs

Goa is facing negative resource gap: CAG

Analyzing the state’s finances, the Comptroller and Auditor General (CAG) of India’s report stated that Goa is facing a negative resource gap of 316 crore. The CAG has advised Goa to step up resource mobilization and cut down unproductive expenditure to maintain debt stability. “Negative resource gap indicates the non-sustainability of debt. The resource gap was negative in 2009-12, indicating the continuing risk of non-sustainability of debt. During 2011-12, despite positive indicators, the negative resource gap of 316 crore was a matter of concern,” the 2012 report stated.

“Nearly 26.87 per cent of the total state debt is repayable within the next five years, while the remaining 73.13 per cent is payable in more than five years. It indicates that the states’ liability to repay the debt would be 803.86 crore during 2015-17 and 1,356.18 crore in 2017-19, which would put a strain on the budget during that period. The state may have to borrow further to repay those loans,” the report read.

The government’s cash balances at the close of 2011-12 decreased by 11.23 per cent over the previous year, the CAG noted.

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