I have to agree with the post about over-tipping, just because to us it is not much money, it is to Indians. About ten years ago this same issue was explained to us by some Goan's we were friendly with. Because over-tipping ruins the local economy, prices go up - not just for tourists - because it is accepted that local shack/bar owners are making a lot of money, particularly from tips.
As said previously, you can still buy meals, beers, taxi's etc for 20-30 rupees outside of resorts, yet we, like idiots, give pound coins to the airport workers who harrass you and pounce on your bag at the airport- approx 80 rupees!! They must be the highest paid workers in India.
Police from all over India pay bribe money to get posted to Goa, because they know that they can extort money from tourists (riding scooters), and from sellers and shack owners on the beaches. It is to pay these leeches that prices have to go up. Also there is a 'Goan Mafia' extorting money from sellers etc who come from Karnatica and Kashmir to make a living during the tourist season. They all beat up sellers-both women and children- who cannot pay their increasing demands (and steal their property).
I am afraid Goa is a paradise lost, and we have only ourselves to blame.