New Delhi: Presenting the Tamil Nadu budget in the state Assembly on Friday, finance minister Palanivel Thiaga Rajan said that for the first time since 2014, the revenue deficit is set to decrease by over Rs 7,000 crore.
Addressing the House, Rajan cited how the unforeseen circumstances such as the Covid-19 pandemic and floods had a negative impact on the state’s economy and said that although the revenue deficit since 2014 has risen every year in an intimidating manner, it has been changed for the first time this year.
As Thiaga Rajan rose to deliver his speech, the Leader of the Opposition, AIADMK’s K Palaniswami tried to raise some issues.
Although Speaker M Appavu said that nothing would go on record, adding that time would be allotted to the opposition to voice their views following the budget presentation, the principal opposition party members, including deputy leader O Panneerselvam, were on their feet seeking to raise some matters. They also raised slogans creating a ruckus in the Assembly.
The Speaker urged them repeatedly to take their seats and said that the business for March 18 is confined to budget presentation. Both Palaniswami and Panneerselvam, who were well aware of the practices should protect the Assembly traditions, the Speaker said. However, led by Palaniswami, the AIADMK staged a walkout, boycotting the budget presentation, the second by the DMK government after it assumed power in May 2021.
Speaking about the revenue management, the finance minister said that the overall revenue deficit has decreased to Rs 55,272.79 crore in revised estimates as against the budgeted Rs 58,692.68 crore.
“This government will take all necessary measures to increase the efficiency in tax collection,” news agency PTI quoted Rajan as saying.
The 15th Central Finance Commission has recommended a fiscal deficit up to 4.5 per cent of GSDP to states in 2021-22, he said, adding, “The fiscal deficit as a percentage of GSDP has reduced to 3.80 per cent in the revised estimates from 4.33 per cent in the budget estimates.”
Talking about the growth in state economy, the minister said that the state’s Own Tax Revenue is estimated to be Rs 1,42,799.93 crore and the state’s Own Non-Tax Revenue Rs 15,537.24 crore. The share in Central Taxes component is estimated to be Rs 33,311.14 crore. The total revenue receipts are expected to be Rs 2,31,407.28 crore and the total revenue expenditure is expected to be Rs 2,84,188.45 crore.
Rajan said that in 2022-23, the net public debt is projected at Rs 90,116.52 crore. On March 31, 2023, the total outstanding debt would be Rs 6,53,348.73 crore and the Debt-GSDP ratio 26.29 per cent. “This is within the limits set by the 15th Central Finance Commission,” he said, adding that this government’s clear, focused action and administrative efficiency has made the turnaround possible.
Saying that Chief Minister MK Stalin is the foundation of such action, he praised Stalin as the symbol of ‘Dravidian model’ of growth that underlined self-respect, harmony and social justice driven all-inclusive growth.
Rajan also said that Rs 2,531 crore for waiver of agricultural loans, Rs 1,000 crore for waiver of jewel loans and Rs 600 crore for waiving self-help group loans, totalling Rs 4,131 crore has been allotted in this year’s budget.
Pointing at the state discom TANGEDCO’s financial condition as a matter of grave concern, the minister said that an allocation of Rs 13,108 crore has been provided for the government to take over 100 per cent of its losses for the current year.
Further, an allocation of Rs 9,379 crore has been provided in the budget to reimburse the tariff subsidies being provided by the state government.
A basic tenet of the Constitution is that ‘India is a Union of States’, he said, adding, “We are deeply concerned at the persistent attempts to erode the federal architecture of our polity.”
The government would continue to fight for the legitimate rights of all states, he said.
Talking about the probable challenges and uncertainties that await this financial year, the minister said that the ongoing war in Ukraine can disrupt the global economic recovery and the global supply disruptions and demand shocks, including those triggered by the conflict can adversely impact the state’s tax revenue.
The government would contribute Rs 50 crore to the ‘Emerging Sector Seed Fund’ for making equity investments in Tamil Nadu based start-ups, Rajan added.