Porvorim: Chief Minister and Finance Minister Pramod Sawant on Wednesday informed the Legislative Assembly that the state’s borrowings over the last five years have remained within the limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) Act and have been utilised for capital works.
Replying to a starred question tabled by Leader of Opposition Yuri Alemao during the ongoing Winter Session of the House, Sawant said that 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 (Fiscal Responsibility and Budget Management Act, 2003), the Chief Minister said that the state government was currently meeting three of the four fiscal targets prescribed under the legislation.
“Only the debt-to-GSDP ratio is above the fixed target. However, the same has been declining since the post-Covid period,” Sawant said.
He added that 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 reflects the state’s efforts towards medium-term fiscal sustainability.
