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:: Press Releases ::
Wednesday, January 29, 2014

1. Dr. Y.V. Reddy, Chairman, Ms.Sushama Nath, Prof.Abhijit Sen, Dr. M. Govinda Rao and Dr.Sudipto Mundle, Members of the Fourteenth Finance Commission and Sh. A.N. Jha, Secretary visited the State of Goa from January 28-29, 2014 to hold consultations with the State Government and key stake holders.

2. The Commission met with the Hon’ble Chief Minister, his Cabinet Colleagues and senior officers of the State Government, for discussions.

3. The Chief Minister welcomed the Chairman and Members to Goa and highlighted that around 38% of State area is under forest cover, 5% under CRZ besides the hilly terrain which leaves less area for developmental purpose. Though the State at present has the highest per capita income but the small size and in addition, the recent reports on the Western Ghats are cause for concern as it impacts 84% area. Yet another concern is large number of tourists, almost double the State population which puts strain on the infrastructure and public service delivery. The ban on mining has resulted in loss to the State economy estimated to be 26% of GSDP.Yet another concern raised was regarding Central Sponsored Schemes and grants conditionalities which may not be appropriate for small states like Goa.Therefore he emphasised that the State needs to be treated differently.

4. The State Government submitted its Memorandum and made a detailed presentation on the finances of the State Government and its projection for the award period.On horizontal devolution, the State suggested that 1971 population may be assigned a weight of 25%, Income Distance criteria 30%, Fiscal Discipline 15%, Tax Effort, Human Development Index and Area criterion 10% each. Further State should be assigned additional 2% in area weightage. The State submitted specific proposals for grants including on comprehensive mobility plan, tourism infrastructure, solid waste management, underground electricity cabling, sewerage network and also sought mining compensation from the Finance Commission.

5. The Commission also interacted with representatives of political parties, Panchayati Raj Institutions, Urban local bodies and Trade and Industry Associations.

6. The Commission places on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assures that the issues raised have been taken on board and will receive due attention in the deliberations of the Commission. The Commission also looks forward to continuing interaction with the State Government.

7. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

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