Chennai: The state has registered a significant 9 per cent dip in its revenue, particularly in the commercial taxes, due to reduced sales tax realisation on petroleum products and the public debt burden is expected to increase to Rs 2,47,031 crore at the end of this current fiscal, as per the interim budget 2016-17 presented by finance minister O. Panneereselvam on Tuesday.
The net borrowings this fiscal is estimated as Rs 35,129 crore and the outstanding debt including provident fund (of Rs 2,47,031 crore) constitutes 19.62 per cent of GSDP. “The decrease in revenue was inspite of revenue collections. This is because of the downtrend in taxes particularly sales tax, transport, stamp and registration, and because of global depression. Overall there has been downtrend in economy and even manufacturing states like Gujarat and Maharashtra felt the impact of global economic slowdown,” said K. Shanmugam, additional chief secretary to government, finance department.
He claimed the state’s general economic growth was “good” but the state’s own tax revenue growth rate fell, particularly in the commercial taxes, due to reduced sales tax realisation on petroleum products owing to the fall in international crude oil prices.
“Further, the reduced share in central devolution, delay in reimbursement of grants-in-aid from government of India, in addition to reduced central share in centrally sponsored schemes have caused strain on the state finances,” Mr Panneerselvam said while presenting the interim budget. In spite of constraints on revenue receipts, the overall fiscal deficit, net borrowings and debt-GSDP ratio would be fully kept within the permissible limits except during 2017-2018 based on the presumption that the Seventh Pay Commission recommendations, he added.
“We have made conservative estimates…none of the programme implementation has slowed down because of fiscal constraints. Tamil Nadu is topping on the human development index,” Mr Shanmugam told reporters on Tuesday evening.
