Parrikar govt completes one year amid fears of recession

The Manohar Parrikar-led Goa government will complete its one-year in the office tomorrow amid speculations of recession being faced by the state fuelled by the impending crisis in the mining industry.

The BJP-led government was sworn in on March 9 last year after the party-led alliance swept the polls, reducing the then ruling Congress party into a single digit number.

One year down the line, the state government has managed to implement various schemes including 'Ladli Lakshmi', which assures Rs one lakh to a girl for her marriage. The government also slashed petrol prices by Rs 11 after exempting Value Added Tax on it.

However, the high flying developmental dreams of Parrikar-led government were shattered after the mining industry faced a major disaster by being completely halted in September last year.

The Chief Minister had admitted earlier to have been witnessing recession in the iron ore rich mining belt, where the markets were down.

Last week, Parrikar expressed apprehension that growing impatience among people in the aftermath of ban on mining activity could precipitate into a "flare-up."

Parrikar said his government has limited options at disposal if such eventuality arises as people are agitated over the loss of livelihood, following an interim ban on mining by the Supreme Court last year. "Things are boiling up slowly in the mining area. I have received a police report about people being impatient (due to closure of mining activity)...Don't be surprised if you find violence or suicide in the mining belt," Parrikar had said.

In a ripple effect, the state is currently going through a phase of feeble economy as the revenue generated from mining has stopped. The government expected to earn Rs 1,000 crore from the royalty on the ore exported.

The government has taken a hit of Rs 800 crore so far this fiscal to its treasury due to the closure of mining activity, a senior official said last week.

The people affected with mining closure have claimed that they are on the brink of becoming bankrupt. The truck owners have also begun complaining that their vehicles are attached by banks because they have failed to pay EMIs.

The state government also faced the loss in the terms of VAT collections, as the spending of people went down.