In March this year the Centre had presented an interim budget in Parliament for four months since the state was under President's rule.

Severe over-staffing in all government departments has led to Goa paying 50 paise out of every rupee earned on salaries to employees. While 33 paise are directly accounted by salaries, four paise is kept aside for pensions and gratuity. Of the 12 paise allotted for grants-in-aid eight and four paise are paid as salaries to teachers and other employees, the CM said in his budget speech. Interest payment on loans availed by the state account for another lumpsum in expenses - 18 paise. However only four paise have been kept aside for paying the principal loan amount. Only 14 paisehave been kept aside for capital outlay by the state government.

The revenues earned by the state indicate that the government lives largely on borrowings. Of every rupee earned by the state government 23 paise come by way of borrowings. Another 24 paise come through receipts under public account and taxes and grants from the central government. On the other hand the state's own tax revenue and non-tax revenue account for just 51 paise. In all the state's total receipts is estimated at Rs 1,788 crore up from Rs 1,604 crore in 1998-99. A revenue deficit of Rs 153 crore is expected for the current financial year, Faleiro informed.

The CM noted that the government has had to resort to borrowings in order to fund even recurring expenditures which should ideally be met from current revenues. The revenue contribution to state plan has deteriorated from Rs 44.45 crore in 1997-98 to a shortfall of Rs 98.99 crore in 1998-99 to a shortfall yet again of Rs 92.97 estimated in the current financialyear.

Consequently the state government is demanding further allocation of Central funds to Goa under the Gadgil-Mukerjee formula. The outlay of central funds has fallen from Rs 128 crore last year to Rs 58 crore, the CM informed.