Goa Budget Analysis 2025-26

The Chief Minister of Goa, Mr. Pramod Sawant, presented the Budget for the state for the financial year 2025-26 on March 26, 2025.

Budget Highlights

The Gross State Domestic Product (GSDP) of Goa for 2025-26 (at current prices) is projected to be Rs 1.39 lakh crore, amounting to growth of 14% over the previous year.
Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 25,639 crore, roughly the same as the revised estimates of 2024-25. In addition, debt of Rs 2,523 crore will be repaid by the state.
Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 22,706 crore, an increase of 7% as compared to the revised estimate of 2024-25.
Revenue surplus in 2025-26 is estimated to be 1.7% of GSDP (Rs 2,404 crore), higher than the revised estimate for 2024-25 (Rs 1,097 crore, or 0.9% of GSDP) at the revised estimate stage in 2024-25.
Fiscal deficit for 2025-26 is targeted at 2.1% of GSDP (Rs 2,932 crore). In 2024-25, as per the revised estimates, fiscal deficit is expected to be 3.5% of GSDP, higher than budgeted (2.6% of GSDP).

Policy Highlights

Mukhyamantri Kaushalya Sahay Yojana: Under this scheme, students who complete certified courses in areas such as apparel, automobiles, and beauty and wellness will be provided accessory kit grants of Rs 20,000.
Pension: The Unified Pension Scheme will be implemented from 2025-26 onwards. Assured pension will be provided to government employees, funded by a retirement corpus with the government meeting any shortfall.
Tax holiday for new hotels and hospitals: Investors setting up hotels (three stars or above) or hospitals in hinterland talukas will receive 50% rebate on state GST, exemption of stamp duty and registration, and waivers of other processing fees.
Ease of Doing Business: The Goa Value Added Tax Act, 2005 will be amended to reduce the compliance burden for small businesses. The one-time settlement scheme to resolve VAT legacy disputes will be re-introduced. Excise duty slabs will be rationalised to five slabs, with revised rates notified annually.
Tax relief for real estate development: 50% discount on infrastructure tax will be provided for real estate developments at the time of technical clearance. Further 50% discount will be provided on the issuance of the occupancy certificate. An amnesty scheme to waive penalties on property transfers has also been proposed.

Goa’s Economy

GSDP: In 2023-24, Goa’s GSDP (at constant prices) is estimated to grow by 7% over the previous year. In comparison, India’s GDP is estimated to grow by 8.2% in 2023-24.
Sectors: In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 7%, 51%, and 42% of Goa’s economy, respectively (at current prices).
Per capita GSDP: In 2023-24, Goa’s per capita GSDP (at current prices) is estimated to be Rs 6,74,684, a 13% increase over 2022-23. India’s per capita GDP is estimated to be Rs 1,88,892 in 2023-24.

Figure 1: Growth in Goa’s GSDP at constant prices (2011-12)

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: MOSPI; PRS.

Budget Estimates for 2025-26

Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 25,639 crore. This is marginally higher than the revised estimate of 2024-25. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 22,706 crore and net borrowings of Rs 2,764 crore. Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 7% over the revised estimate of 2024-25.
The state estimates a revenue surplus of 1.7% of GSDP (Rs 2,404 crore) in 2025-26, higher than the revised estimate for 2024-25 (0.9% of GSDP). Fiscal deficit for 2025-26 is targeted at 2.1% of GSDP (Rs 2,932 crore), lower than the revised estimates for 2024-25 (3.5% of GSDP).
The fiscal deficit for 2024-25 at the revised stage was 35% higher than the budget estimate. This may be due to revenue surplus decreasing by 36% between the budget and revised estimates.