CHENNAI: Tamil Nadu’s revenue deficit and fiscal deficit have increased substantially as compared to the interim budget presented in February this year. While the revenue deficit has gone up to Rs 15,854.47 crore from Rs 9.154.78 crore, the fiscal deficit is Rs 40,533.84 crore against Rs 36,740.11 crore during the interim budget. The fiscal deficit of Rs 40,533.84 crore is the highest in the past five years for the state.
The government attributed the substantial increase in the fiscal to implementation of many new schemes like waiver of agricultural loans and 100 units of free power to every household and continuance of various welfare schemes. Finance secretary K. Shanmugam attributed the substantial increase in revenue deficit to slowing down of tax revenue growth due to global economic slowdown and a fall in the state’s own tax revenue due to decrease in tax revenue from petroleum products.
He also said the Centre has reduced subsidies for many schemes and has also reduced its share in joint projects. “The state Budget 2016-2017 lays emphasis on five movements and 11 mega projects. The budget has been drafted to provide inclusive growth. Development and maintenance of water bodies at an initial cost of Rs 100 crore, poverty eradication, slum-free villages and towns, clean Tamil Nadu and skill development are five major areas which the government chose to concentrate on during this year,” he said addressing the customary post-budget press conference here.
Responding to questions on the projected deficit, he said the outstanding debt to Gross State Domestic Product (GSDP) ratio will be 18.43 per cent of GSDP, which is well within 25 per cent ceiling mandated by Centre. “The GSDP fiscal deficit ratio is 2.96 per cent which is also within three per cent ceiling allowed by the Centre,” he said adding that Tamil Nadu has been spending almost 30 to 35 per cent of its revenue expenditure in the social sector.
The budgetary borrowings is estimated to be Rs 40,529 crores in the revised budget, the overall outstanding borrowings of Tamil Nadu is estimated to be Rs 2,52,431 crore at the end of the 2016-2017 fiscal. The state government has paid Rs 21,215 crore as interest to the loans it had availed of.
