Chennai: The State Budget for 2019-20 fiscal presented on Friday in an election year announced sops for various sectors including Rs 10,000 crore crop loan to farmers, pension benefits to unorganised sector, as assured by the Centre, and launching a comprehensive accident-cum-life insurance scheme covering all below poverty line (BPL) families in the state.
The budget presented by Deputy Chief Minister O. Panneerselvam who holds the finance portfolio, narrows the revenue deficit and steers clear of new taxes. With Lok Sabha election around the corner, the budget did not propose any additional taxes or levies. The budget estimates revenue deficit of around Rs 14,300 crore. “With higher SOTR (state’s own tax revenue) growth, coupled with the phasing out of the impact of Ujwal Discom Assurance Yojana (Uday) and pay revision, the state expects to bring down the revenue deficit in the coming years,” Mr Panneerselvam said.
The total revenue receipts of the state government, including the Central transfers, are estimated to be Rs 1,97,721.17 crore in 2019-2020. The favourable climate for state’s economic growth is expected to enhance the state’s own tax revenues. The introduction of the Goods and Services Tax (GST) in July 2017 underwent difficulties during the initial period of implementation but later achieved momentum. The SOTR is estimated to be Rs 1,10,178.43 crore in the Revised Estimates 2018-2019. It is estimated to increase to Rs 1,24,813.06 crore in the Budget Estimates for 2019-2020. Growth rates of 13.12 per cent and 13 per cent are assumed for the years 2020-2021 and 2021-2022 respectively, he said.
Govt will continue its welfare schemes: The total revenue receipts (TRR) for 2019-20 are projected to be Rs 1,97,721.17 crore. Commitments for salary revision and UDAY scheme would continue in the new fiscal.
The state finance ministry’s decision to allocate nearly Rs 84,926.86 crore towards salaries and pension for government employees (41 per cent of its total expenditure for FY 20), signals the impact of 90,000 government employees and teachers who went on strike demanding better wages.
