CHENNAI: Sluggish economy for over three years continues to be a challenge and the government would make all efforts to address the situation, Finance Minister D. Jayakumar said on Friday. He said the State's fiscal situation would be improved and all welfare schemes would be implemented through sustained efforts.
Though the stamp duty collection did not come down after the upward revision of guideline value for land registration, the growth percentage lowered due to a "general economic sluggishness," the minister told the Assembly winding up the debate on the Budget for 2017-18. Although, a dip in stamp duty revenue during 2016-17 was due to a case in the High Court, a solution will be found, he said.
He said tax buoyancy is expected to be at 0.81 during 2016-17 which had plummeted to 0.21 during 2015-16 because of factors like economic slowdown and loss in tax revenue from petro products. The tax revenue would increase commensurate with a rise in economic growth, he said, adding, “Debt and fiscal deficit will be retained within the (permissible) threshold.” The minister said since 2011-12, though fiscal deficit was within three percent, during the current year (2016-17), the fiscal deficit has been estimated to be at 4.58 per cent and it was due to the government absorbing the Rs 22,815 crore debt of TANGEDCO with Tamil Nadu signing up for UDAY scheme.
“In 2017-18, the fiscal deficit will be reined in at 2.79 per cent of the SGDP.” He said the State’s debt will be 2.72 lakh crore as on March 31, 2017 which includes the absorption of TANGEDCO’s outstandings. Citing Opposition members’ remark that the statistics pertaining to budget estimates was not provided in government website, he said the government has “no hesitation,” in releasing such data.
The government website was being upgraded and a new portal will be inaugurated which will have new data and all related information, the minister said. Referring to DMK member M R K Panneerselvam hitting out at distribution of free milch cows and goats, Jayakumar said these were distributed to the poor as cattle was the lifeline of rural economy. Bills including one to amend the Tamil Nadu Value Added Tax Act, 2006 which levies an additional tax on taxable turnover of liqour sale were adopted. Members of ruling AIADMK and main opposition DMK continued to cross swords on several issues including Cauvery. Later, the House was adjourned sine die by Speaker P Dhanapal.
