Tax Revenue Declines by 18%, Fiscal Deficit Crosses Rs 1 Lakh Cr

Chennai: Tamil Nadu’s funds appeared southwards with the fiscal deficit crossing Rs 1 lakh crore within the 12 months 2020-21 as per the revised funds offered on Tuesday by deputy chief minister O Panneerselvam within the meeting.

The financial progress, that was round 7% annually, is anticipated to be at 2.02% within the current monetary 12 months. Progress expectation within the subsequent monetary 12 months 2021-22 is at 11.5%.

Presenting the interim funds, the numbers for the current monetary 12 months confirmed that Tamil Nadu tax income declined by almost 18% within the revised funds in comparison with the funds offered in February final 12 months.

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The funds had anticipated a complete tax income of Rs 1.33 lakh crore however within the revised funds, the federal government is anticipating its tax income to be Rs 1.09 crore because the state like all different states had intense lockdown for almost 6 months earlier than unlocking of lockdown began.

The federal government’s fiscal deficit, anticipated to be 2.84% within the 2020-21 funds, is anticipated to the touch 5% of GSDP on the finish of the current monetary 12 months. The AIADMK authorities might be crossing the three% line of fiscal deficit for the second time within the final give years. In 2017-18, the fiscal deficit crossed 4% as the federal government took over part of Tangedco’s debt as per the UDAY scheme.

With the income declining, the federal government needed to borrow from varied sources to pay salaries, pension and in addition spend on the well being and welfare division to stop the unfold of Covid-19.

Tamil Nadu’s whole debt, which was Rs 1 lakh in 2011, has elevated to Rs 5.70 lakh crore which is 26.69% of the GSDP. The federal government just isn’t assured to decrease the debt however expects it to extend to 27.44% in 2022-23 and 27.50% of the GSDP in 2023-24.

“The federal government plans to borrow a web quantity of Rs 84,686.75 crore within the current monetary 12 months. The income deficit within the revised estimates for 2020-21 is anticipated to be Rs 65,994.06 crore in opposition to the funds expectations of Rs 21,617.64 crore,” mentioned Panneerselvam.

The federal government expects the income deficit to be Rs 33,510 crore in 2022-23 and Rs 24,483 crore within the subsequent 12 months.

The federal government is assured of accelerating its income within the subsequent monetary 12 months. “Although there’s slowdown at current, the Indian financial system is anticipated to achieve momentum within the coming years. Regardless of the present financial downturn, Tamil Nadu’s progress is greater than that of nationwide GDP, which is a optimistic signal,” mentioned Panneerselvam.

“Varied steps like useful resource augmentation measures and enchancment of useful resource assortment effectivity is sure to assist keep a wholesome progress in income receipts of the state,” mentioned the deputy chief minister.

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