Mining ban to have shortfall of Rs 18,000 Cr: Govt

GOANEWS DESK, PANAJI | 05 December 2012 20:59 IST

Goa government has portrayed a depressing picture of Goan economy before the Supreme Court, as a result of stopping the mining activity. The total income generation shortfall is calculated to around Rs 18,000 crore.

It includes loss of mining royalty as well as loss of value added tax and the overall contribution to the Gross State Domestic Product.

Goa government has told the Supreme Court that stoppage of mining activity has led to heavy downfall of income generating activity.

The loss on mining royalty is estimated to around Rs 580 crore. The loss of collection of value added tax would be around Rs 930 crore.

And the multiplier effect of GSDP shortfall towards income generation is calculated to the tune of Rs 17,600 crore.

Goa government has told the Supreme Court that the state was expecting mining royalty of Rs 902 crore this year.

 But by September end, only Rs 321 crore  have come to the coffers. It is only 35 per cent of the total estimated collection.  

And with the mining operations now stopped completely, it would lose the royalty to the tune of Rs 581 crore.

In addition, the government would also lose its major revenue of the value added tax on diesel, POL, taxes on commercial vehicles, spare parts, barge tax as well as declined purchasing power of the consumers.

According to the government, the VAT collection was estimated to around Rs 1280 crore. But the collection would not cross Rs 350 crore.

The loss would be thus to the tune of Rs 930 crore.

Goa government has also placed before the Supreme Court the expected contribution to the Gross State Domestic Product. It was estimated at Rs 6800 crore.

But it would now slide down to only Rs 2400 crore. The shortfall would be Rs 4400 crore.

With a multiplier effect of 4, the state government has calculated total income generation shortfall of Rs 17,600 crore. 


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Previous Comments

In view of the reduced income of the state due to stopping of the mining activity, it is time to put a stop on various new schemes.

Let the schemes wait till the financial situation improves.

- Francisco G. Lourenco, London | 07 th December 2012 20:15

 

all these figures have no meaning. The proof of the cake is in eating. Can goa news throw light on following facts 1. Are goa govt employees getting regular monthly payments, 2. Are govt contractors getting their bills cleared, 3. Are beneficiaries of govt schemes getting money, and most importantly from where goa govt is making expenditure, from income or loans borrowed? This will explain what exactly parrikar has done with our goa. Otherwise we will have to say congress govt was better govt then parrikar govt. Afterall india today award to goa was for performance of goa in last year when congress was in power and not this year.

- peter, margao | 06 th December 2012 12:57

 

Nothing to worry, CM is still announcing schemes. I remember he has presented a Budget of around 9500 crores for financial year 12-13. and 950 crores royalty is just 10 percent of the total budget, otherwise how can he give VAT concession of Rs. 50,00000 per day on petrol.

- Dr.Sanjay Sawant Dessai, Curchorem Goa | 05 th December 2012 21:28

 

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