TN bud pegs revenue deficit at over Rs 15,000 cr

The Tamil Nadu government today presented its revised budget estimates for the year 2016-17, sparing the common man of any new taxes and pegging the revenue deficit at over Rs 15,000 crore.
Presenting his first budget after AIADMK retained power in the May 2016 polls, Finance Minister O Panneerselvam said implementation of new schemes and continuance of other welfare schemes have increased the expenditure of the state.
"The implementation of many new schemes such as waiver of agricultural loans of small and marginal farmers owed to cooperative institutions and free power to domestic consumers up to 100 units and continuance of various welfare schemes have indeed increased the expenditure of the state," he said.

Both are poll promises of AIADMK made for the May 16 Assembly elections.
Panneerselvam identified water resource management, housing, poverty reduction, a clean Tamil Nadu and skill development as five key "state missions" even as he said the government's top priority is good governance.
"The government will take up housing on a massive scale and in keeping with the electoral promise, the state will construct 10 lakh houses in the next five years under various schemes," he said, adding Rs.689 crore have been allocated for the 'Housing for All' scheme.

In the revised budget estimates, the revenue expenditure has been estimated at Rs 1,64,029.56 crore as against the Rs 1,61,159.01 crore in the interim budget presented in February this year.

"As a result, the revenue deficit for the ongoing financial year has been estimated at Rs 15,854.47 crore," he said. The revenue deficit for 2016-17 was pegged at Rs 9,154.78 crore in the interim budget in February.
Revenue receipts were estimated at Rs 1,48,175.09 crore.
In the revised estimates, government pegged the fiscal deficit at Rs 40533.84 crore, which was 2.96 per cent of Gross State Domestic Product, "and is well below the limit prescribed by the Tamil Nadu Fiscal Responsibility Act, 2003", he said.
Due to continuing global conomic slowdown, tax revenue growth has been slow, Panneerselvam said.
Although state economy state economy has been showing

signs of recovery, "there is significant fall in State's Own Tax Revenue growth rate, particularly in commercial taxes because of the reduced sales tax realisation due to fall in tax revenue from petroleum products," Panneerselvam said.
The estimates of commercial taxes was Rs 67,629.45 crore as against the 72,326.45 crore in the interim budget.
Excise duty collection had been scaled down to Rs 6,636.08 crore considering the decision to shut down 500 state-run TASMAC liqour outlets, another key poll promise of AIADMK.
That the economy was looking up was evident from the improvement in GSDP growth rates from 4.85 per cent in 2012-13 to 6.94 per cent in 2014-15 as per 2011-12 constant prices.

"Considering the trend, it is expected that the economy will further improve and the state would register a higher growth rate," he said.
"In the forthcoming years, Fiscal Deficit to GSDP ratio will be 3.34 per cent in 2017-18 and 2.96 per cent in 2018-19. The state has to go for additional resource mobilisation or resort to control in expenditure in order to limit fiscal deficit within three per cent norm while managing additional expenditure commitments during 2017-18," he said.
Panneerselvam did not propose new taxes.
Allocating Rs 13,856 crore for energy sector, he said, "As promised in election manifesto 13,000 MW and 2,500 MW of thermal and hydel power respecively will be added to the existing generation capacity besides 3,000 MW of solar power."

The first ever Global Investors Meet held last year was a "stupendous success," with Rs.23,258 crore investments having materialised and generating employment for 48,145 people.
Panneerselvam asserted that agriculture and allied sectors, strengthening urban infrastructure including transportation, promotion of MSMEs, tourism and infrastructure development, industrial investment through corridor-based development, education and health for all, social security with focus on women and children will be special focus areas of development.
As promised in election manifesto, a new scheme will be launched for dry land farming, assistance to fishermen families has been enhanced to Rs.5,000 per family (during lean season and relief during ban period) and Rs.223 crore has been allocated in the budget for it.

The state would embark on a mission for water resource management to restore water bodies and revive "Kudimaramathu, an ancient practice in which citizens took part in renovation work.
(REOPENS MDS5)
Among others, Panneerselvam proposed a Rs 45 crore product dairy at Maduraui which will produce a range of products including ice cream.
The initiative was aimed at promoting the dairy sector in south Tamil Nadu.
On the water front, Panneerselvam urged the Centre to initiate action for the implentation of the national river water linkage projects.