 "O Panneerselvam")
While the outlay for the Annual Plan 2016-17 will be finalised after the elections, the tentative allocation ensure that the State achieves overall plan expenditure of Rs 2,31,498 crore by the end of this five year plan period, exceeding the overall target of Rs 2.11 lakh crore envisaged under the 12th Five Year Plan, said Minister for Finance and Public Works, O Panneerselvam.
The budget has estimated with a revenue deficit of Rs 9,154.78 crore during the fiscal year, with an estimated total revenue receipt of Rs 1,52,004.23 crore and total revenue expenditure of Rs 1,61,159.01 crore in the interim budget.
"It is pertinent to mention here that such huge revenue deficit is unavoidable due to falling State's Own Tax Revenue especially the Sales Tax revenue from petroleum products," said the minister.
"Further, when the State is implementing many unique schemes such as the Green House Scheme, free distribution of fan, mixie, grinder and laptop computers scheme, Special public Distribution System, social security schemes etc., such Revenue Deficit is unavoidable," he said, adding that most of the other states are suffering even without such schemes.
The necessary amendments to Tamil Nadu Fiscal Responsibility Act, 2003 will be taken up when the revised budget estimates for 2016-17 are presented to Legislative Assembly in view of this, he added.
Fiscal deficit, for 2016-17 is projected as Rs 36,740.11 crore, which is 2.92 per cent of the Gross State Domestic Product (GSDP) as against the Rs 32,359.59 crore estimated in the revised estimates 2015-16, which is 2.94 per cent of GSDP. The fiscal deficit estimated in 2016-17 is below the limit prescribed by the 14 Finance Commission.
The net borrowings for the State during 2016-17 is estimated as Rs 35,129 crore in the interim budget, while the State is entitled for budgetary borrowing of Rs 37,782 crore.
The outstanding debt for the State including provident fund will be Rs 2,47,031 crore as on March 31, 2017, which would be 19.62 per cent of the GSDP.
During 2016-17, the GSDP growth rate is estimated at 9.13 per cent at 2011-12 constant prices. The GSDP growth rate of the State, which was 3.39 per cent in 2012-13 has improved to 7.25 per cent in 2014-15 in real terms (2004-2005 prices), adds the Budget.
The slow rate of tax growth witnessed in the previous two years has been continuing in 2015-16 also, especially in the Commercial Taxes, he said. The fall in international crude oil prices in the last one and a half years and consequent reduction in the Sales Tax realisation on these petroleum products has reduced the State Tax Revenue by Rs 4,000 crore per annum.
Under the revised sharing pattern for the Centrally Sponsored Schemes from 2015-16, the State has to bear additional burden of about Rs 1,400 crore to Rs 2,000 crore during 2016-17. The Grants-in-Aid from the centre has been projected at Rs 22,496.08 crore.
The interim budget has projected a State's Own Tax Revenue of Rs 96,531.41 crore for 2016-17/against the Revised Estimates of Rs 86,537.70 crore in 2015-16. The Commercial Taxes are expected to grow at 11.69 per cent to Rs 72,326.45 crore in 2016-17 as against the previous fiscal's revised estimates. The State Excise Duty is expected to reach Rs 7,101.81 crore, collection of Stamp Fees and Registration Charges at Rs 10,548.25 crore and Taxes on Motor Vehicles at Rs 4,925.05 crore in the interim budget.
The State's Own Non-Tax Revenue is estimated at Rs 9,288.63 crore and the share of Central Taxes at Rs 23,688.11 crore.
In the interim budget, Rs 2,000 crore has been allocated for the Tamil Nadu Infrastructure Development Fund and Rs 200 crore for the Project Preparation Fund.
It has also allocated Rs 6,938.57 crore for agriculture including Rs 123 crore under National Horticulture Mission and Rs 100 crore for farm mechanisation. The allocation for agriculture has been stepped up from Rs 2,072.43 crore in 2010-11 to Rs 6,503.40 crore in 2015-16.
The government, which allocated Rs 5,500 crore for food subsidy in the interim budget said that in the last five years, the government has provided Rs 25,000 crore as food subsidy and Rs 762.93 crore to co-operatives as administrative subsidy to run the PDS shops.
In the interim budget, Rs 13,819.03 crore has been provided to the power sector, including Rs 7,370.33 crore for tariff subsidy, Rs 2,000 crore as share capital assistance and Rs 1,483 crore as loan support. The total installed capacity of the State as on December 31, 2015 is 26,806.05 MW, out of which 4,455.5 MW has been added to the grid by commissioning new projects and 3030 MW through through medium and long term Power Purchase agreement in the last five years.
