TN presents tax-free Budget

Tamil Nadu Finance Minister K Anbazhagan has presented a tax-free revised Budget for the fiscal 2006-07 with a fiscal deficit of Rs 7,231 crore and an overall deficit estimate of Rs 4 crore.

Tabling the revised Budget in the state assembly, Anbazhagan said, "While providing enhanced outlays for schemes for the welfare of the people, the fiscal deficit has been contained within 3 per cent of the gross state domestic product by mobilising resources without increasing taxes."

The total revenue receipts for 2006-07 are estimated at Rs 38,731 crore and total revenue expenditure is projected at Rs 39,860 crore, leaving a revenue deficit of Rs 1,129 crore, which is 2.9 per cent of the total revenue receipts.

Capital expenditure, including loans and advances (net), is projected at Rs 6,102 crore. As a result, there will be a fiscal deficit of Rs 7,231 crore for the current financial year.

Fiscal deficit projected for 2006-2007 will be within 3 per cent of the GSDP, which is in line with the targets set under the Tamil Nadu Fiscal Responsibility Act, 2003.

This deficit will be financed through borrowing Rs 7,453 crore. Taking into account the public account (net) and contingency fund (net), overall deficit for FY2007 is estimated at Rs 4 crore.