The revenue deficit of the state has come down from 61,320 crore in FY 2011 to 55,273 crore in FY 2012.
For the first time in eight years, Tamil Nadu’s revenue deficit will come down from 4.15 per cent this fiscal to 3.08 per cent of the state’s gross domestic product (GSDP). There will be a shortfall of about Rs 7,000 crore in this.
Presenting the DMK government’s first full budget, Finance Minister Palanivel Thiaga Rajan said, “Due to the prudent financial management of this government, the total revenue deficit has come down to ₹55,272.79 crore in the Revised Estimates, while the budgeted amount was ₹58,692.68 crore.” 2022-23) on Friday.
The revenue deficit in the previous year (FY21) was ₹61,320 crore. In 2022-23, it will be ₹52,781.17 crore.
“Despite facing financial stress due to the third wave of the COVID-19 pandemic and unprecedented floods, the government has delivered on several election promises focused on improving the livelihoods of the poor. This has led to an increase in the expenditure on subsidies. However, the government has been successful in controlling other expenditure through prudent financial management,” the minister said.
The total revenue expenditure in the Revised Estimate (RE) 2021-22 is estimated at Rs 2,59,150.97 crore as against the Budget Estimate (BE) of Rs 2,61,188.57 crore.
Rajan said the pandemic and the unprecedented floods have severely affected the state’s own tax revenue. Commercial tax, state excise and motor vehicle tax are estimated to be lower than the budgeted estimates in RE.
Overall, the state’s own tax revenue is expected to be ₹1,21,857.55 crore in the Revised Estimates, as against ₹1,26,644.15 crore in the BE.
The share in the central tax component has increased due to increase in tax collections collected by the central government and release of pending dues to the state. The share of central taxes in RE is estimated at ₹33,580.22 crore, while that in BE is ₹27,148.31 crore.
The grant-in-aid from the central government is ₹36,609.47 crore as estimated as against ₹34,564.42 crore in the budget estimate. This increase is on account of dues of previous years.
Due to the present economic situation the projected growth in the collection of own non-tax revenue revenue of the State has not been realized.
The state’s collection from its own non-tax revenue is estimated at ₹11,830.93 crore, which is lower than ₹14,139.01 crore in the BE.
He said that the total revenue receipts of the state have been estimated at Rs 2,03,878.17 crore in the Revised Estimates, which is higher than the budget estimate by Rs 2,02,495.89 crore.
Unprecedented rainfall and flooding, as well as restrictions imposed to control the third (Omicron) wave of the pandemic, have resulted in delays in the execution of capital works. The total capital expenditure in RE is ₹37,936.23 crore, while that in BE is ₹42,180.97 crore.
In BE 2022-23, taking into account factors such as growth in the state’s economy, ongoing measures to generate additional revenue and better tax collection, the state’s own tax revenue is estimated to be in line with commercial taxes (₹1,06,765.22 crore). has been applied. , State Excise Duty (₹10,589.12 crore); Ticket and registration fee (₹16,322.73 crore) and motor vehicle tax (₹7,149.25 crore).
The state’s own tax revenue in the budget is estimated to be ₹1,42,799.93 crore while non-tax revenue is estimated to be ₹15,537.24 crore.
The share in the central tax component is estimated to be Rs 33,311.14 crore. Considering that pending GST compensation from the central government will be payable in the coming year, the grant-in-aid has been estimated at Rs.39,758.97 crore.
The total revenue receipt in the budget is expected to be Rs 2,31,407.28 crore. The total revenue expenditure is expected to be ₹2,84,188.45 crore. This includes expenditure on account of increase in dearness allowance and pension payment as a result of increase in retirement age. He said that adequate allocation has been made for new and existing schemes.
This government will take all necessary measures to increase efficiency in tax collection. Based on this, the revenue deficit is estimated to be Rs 52,781.17 crore.
To increase employment opportunities and boost growth, the total capital expenditure including net loans and advances in the budget is estimated at Rs 43,832.54 crore. This is 23.28 per cent higher than RE 2021-22.
Rajan said the 15th Central Finance Commission has recommended a fiscal deficit of 4.5 per cent of GSDP to states in 2021-22. However, the fiscal deficit as a percentage of GSDP has come down to 3.80 per cent in RE from 4.33 per cent in BE.
Fiscal deficit
The Finance Minister had projected the fiscal deficit to be 3.63 per cent of GSDP in the fiscal year 2013.
In the year 2022-23, the net public debt is estimated at ₹90,116.52 crore. Therefore, as on March 31, 2023, the total outstanding debt would be ₹6,53,348.73 crore and the debt-GSDP ratio would be 26.29 per cent. This is within the limits set by the 15th Central Finance Commission, Rajan said.
“I am sure this budget will be the beginning of a great transformation. In the previous regime since 2014, the state finances have declined. This is evident from the rising revenue deficit and rising interest payments for revenue receipts among other indicators. The ratio makes it clear.After seven years of recession, the reduction in revenue deficit even in such a challenging year is a testament to the prudent financial management of this government.
Published on
18 March 2022