Chennai: All is not well with the two major sources of the state exchequer. The registration department that banks on the real estate sector and Tasmac that deals with liquor outlets are both hit by inflation and recession, admit highly placed official sources. Tasmac sales for the first time has failed to meet its estimated target and has been hovering around Rs 22,000 crore mark since last year. Similarly, registrations of land deals, partnership firms and other documents have dropped from 35,000 in 2011 to 26,000 in 2013-14.
Despite a stable government at the Centre, the state finance is yet to improve and the revenue from these government departments has been stagnant or slipping marginally in terms of volumes since 2013. With the state government recently increasing liquor price, Tasmac outlets are feeling the pinch, say insiders. “Business has dipped from 2 to 5 per cent on low-end brandy and beer variations across the state. However, Indian made foreign liquor variants mostly whiskey and premium brandy sales remained unaffected by the price revision. Sales are expected to pick up in two months,” said a senior Tasmac official.
The growth percentage may vary, but the revenue and earnings will certainly surpass the previous annual earnings, the official added. “Realty business within city limits is not affected, but there is a lull in the market in suburban and peripheral areas of Kancheepuram and Tiruvallur districts,” said Shri Ram, director, Safehans Real Estate. Projects that adhere to norms must be cleared without bureaucratic hassles and we are hoping for an increase in document registrations,” he said.
“The real estate market was inflated during 2006 to 2010 by realtors which has added to the current inflation. Though the volume of registration documents has dipped, the revenue records are not in the red. However, income from commercial taxes has been steadily increasing contributing close to Rs 8,000 crore per annum,” according to a senior a bureaucrat.
