The Cabinet decision comes amid political uncertainty in the state, where the ruling Congress Government enjoys a wafer-thin majority of just one legislator in the 40-member Assembly and has to contend with six legislators who are sore at being left out of the Cabinet.

Former chief minister Wilfred D'Souza, who was ousted by Faleiro, met Governor Lt Gen (Retd) J F R Jacob today and though details of the meeting are not known, the meeting has fuelled considerable speculation that the former chief minister may have persuaded some dissident MLAs to switch sides.

Meanwhile, leader of Opposition Dr Kashinath Jhalmi of the Maharashtrawadi Gomantak Party described the blanketpowers given to the Chief Minister to recommend dissolution of the Assembly as illegal. Citing procedures prescribed by the `Rules of Business of the Government of Goa, 1991', Jhalmi noted that the Cabinet cannot take a decision in anticipation of something.

Jhalmi said the recent political upheaval in the Goa Congress following the merger of a section of the United Goans Democratic Party with it is threatening the future of several Congressmen. The Chief Minister is threatening to dissolve the House in order to contain discontent within the party, Jhalmi alleged.

The Cabinet also gave the nod to set up an information technology department in the state. A draft notification was also cleared by the Cabinet.

NBFCs to be banned

Faleiro has announced that the state government will ban all non-banking finance companies (NBFCs) in the state. This follows several scams whereby small-time companies offering high rates of interests have cheated unsuspecting investors.

``There are several banks in Goa.The state has the highest banks to depositor ratio. There is no need for NBFCs,'' the Chief Minister said at a press conference today. He also said the Reserve Bank of India is incapable of monitoring the functioning of NBFCs.