Cut corners, allocate resources to COVID-19 fight: Goa Guv tells CM

Goa Governor Satya Pal Malik on Friday urged the Pramod Sawant-led coalition government in the state, to start adopting austerity measures, even as Sawant later announced that legislators would no longer be able to avail of government housing loan facilities at a nominal interest rate.

Malik in his letter to Sawant on Friday, had said that adopting austerity measures was necessary in order to conserve financial resources in the battle against COVID-19.

"The Governor has written a letter to the Chief Minister requesting him to adopt appropriate austerity measures in the State economy and reduce the wasteful expenditure so that more resources are made available for battling COVID-19 and bringing the economy back on track," a statement issued by Raj Bhavan said.

"In the letter, the Governor has said that the spread of pandemic COVID-19 has thrown various challenges before the state, which were never faced before. The pandemic has dented the economy severely. In the prevailing scenario, it becomes an imperative for the state to bring in greater economy in the expenses and set an example," the statement also said, adding that the need of the hour was to make greater resources available for COVID-19 relief measures as well as for reviving the state economy.

Last month, Malik had announced 30 per cent pay-cut in his annual wages, while also whittling down on other expenses like floral arrangements and illumination of the Raj Bhavan.

Speaking to reporters in Panaji on Friday, Sawant said that the state government was already beginning to cut corners.

"House interest rates for MLAs were subsidised. The interest rates will not be on par with rates of interest imposed by banks," Sawant said, adding that the state's Goods and Services Tax collection had also dropped on account of the COVID-19 stricken economy.

"We have also started taking various economic measures to cut costs," Sawant said.