Chennai: The Tamil Nadu government which perceives a “steady growth” in the state economy is hopeful of registering positive growth in future. Deputy Chief Minister O. Panneerselvam, who holds the finance portfolio, said the tax revenue for this fiscal is set to increase.
“Now that there is growth in the economy, it is estimated that tax revenue in 2018-19 fiscal will be about 14.11 per cent,” Mr. Panneerselvam said.
On March 15, the state government presented a revenue deficit budget of Rs 17,490.58 crore.
Winding up the four-day discussion on the 2018-19 budget, which he presented, Mr Panneerselvam said about Rs 70,000 crore was being spent per year to implement welfare schemes.
He said revenue deficit could be reduced by implementating the recommendations of the Staff Rationalisation Committee, set up to identify non-essential posts for reducing expenditure. The committee, headed by retired IAS officers S Audiseshaiah, was set up last month.
“Once the recommendations are implemented, it will lead to reduction in revenue deficit and ways and means would open up for the state to revert to revenue surplus,” he added. The panel is mandated to identify non-essential posts in government departments to reduce expenditure and submit a report within six months. The state had surplus revenue in 2011-12 and 2012-13.
In 2013-14, slowdown in economy affected the state like the rest of the country and the tax revenue fell. Factors like economic sluggishnes, inadequate tax revenue and cut in devolution of funds to the tune of Rs 6,000 crore by the Centre for Tamil Nadu in 2015-16 led to revenue deficit, he said citing the 14th Finance Commission report.
Since expenditure increased to 13.71 per cent in 2017-18 owing to hike in salary for government staff, revenue was pegged at Rs 18,370 crore in 2017-18 as per revised estimates, Mr. Panneerselvam added. Meanwhile, the Assembly was adjourned sine die.
