Daijiworld Media Network - Panaji
Panaji, Feb 6: Goa is staring at a major debt repayment challenge from the financial year 2026-27 onwards, with the State government expected to pay more than Rs 11,370 crore over the next five years towards servicing loans raised against government securities, apart from interest liabilities on State Development Loans (SDLs) and other internal debt.
Significantly, the government is planning to refinance a substantial portion of the maturing debt through fresh borrowings, rather than retiring it fully.
According to figures released by the Reserve Bank of India (RBI) in its report State Finances: A Study of Budgets of 2025-26, published last month, Goa’s outstanding liabilities are projected to reach Rs 35,608 crore by March 2026. The RBI cautioned that geopolitical uncertainties, high debt levels and rising contingent liabilities linked to guarantees and cash transfer schemes could pose growing risks to State finances.
In 2026-27 alone, Goa will be required to shell out around Rs 5,320 crore, which includes Rs 1,320 crore towards the maturity of government securities and nearly Rs 4,000 crore as interest payments on SDLs and other internal borrowings.
The RBI study noted that Goa will begin repaying government securities auctioned as early as 2016-17. While repayments are estimated at Rs 1,320 crore in 2026-27, the burden is expected to rise sharply to Rs 1,800 crore in 2027-28, Rs 2,350 crore in 2028-29, Rs 2,600 crore in 2029-30 and Rs 3,300 crore in 2030-31.
Advising caution, the RBI urged States to undertake fiscal consolidation, review market borrowings, explore alternative financing options and strengthen cash management practices to mitigate fiscal stress.
As of March 2026, Goa’s internal debt is projected at Rs 25,986.6 crore, with SDLs forming the largest component at Rs 21,470 crore. The State’s central loan component is expected to stand at Rs 5,544 crore.
A senior government official said that most principal repayments would be managed through fresh borrowings and revenue generated from the resumption of iron ore mining. “The State has significantly reduced its borrowings in recent years. Last year, Goa borrowed around Rs 1,050 crore compared to Rs 2,550 crore in 2024-25. This year too, borrowings have been kept within Rs 1,100 crore,” the official said.
The officer added that following the reduction in GST compensation, the State government has shifted focus towards strengthening its own revenue generation to manage future financial obligations.