Prior to the Tamil Nadu assembly elections to be held in April, the AIADMK government in the state today presented an interim budget for 2021-22 with the COVID-19 epidemic contributing to the high fiscal deficit of Rs 84,000 crore.
The budget presented by the DMK and its allies amid a boycott projected a positive growth rate of 2.02 percent in 2020-21 as it anticipated the economy to rebound due to various policy decisions of the government.
While the main opposition DMK and its allies, which include the Congress and the Indian Union Muslim League, boycotted the budget presentation by walkout, Leader of the Opposition MK Stalin, in a statement, condemned the government allegedly for Rs 7070 lakh crore loan. Of. .
As Deputy Chief Minister O Panneerselvam, who runs the Finance Department, began his budget speech, DMK Deputy Leader Duraimurgan spoke Speaker P. Urged Dhanapala to allow him to express an “idea” which was withheld.
Where there was a dinner for a while, opposition members eventually staged the walkout, boycotting the presentation of the interim budget, the last by the current AIADMK government before the election.
Mr Stalin, who did not participate in the proceedings of the House, assured of “development” for the state after winning power in the upcoming elections.
With the epidemic shading, the budgeted revenue deficit is estimated at Rs 41,417.30 crore and fiscal deficit Rs 84,202.39 crore, 3.94 percent of the gross state domestic product (GSDP). Revenue expenditure has been estimated at a total level of Rs 2,60,409.26 crore. Noting that the budget has an “imprint” on the unprecedented challenges posed by the epidemic, the deputy CM said Tamil Nadu was being hailed as a model state in dealing with COVID-19.
In total, the government spent Rs 13,352.85 crore on the epidemic response, he said.
As per the recommendation of the high-level panel, additional restrictions amounted to Rs 20,013 crore for higher capital expenditure including irrigation, housing and highways.
In view of such measures, the state is expected to register a positive growth of 2.02 percent against the all-India negative growth rate of 7.7 percent in 2020-21.
Mr. Panneerselvam said that towards capital expenditure, Rs 43,170.61 crore has been made available in the budget estimates for 2021-22, as against Rs 37,734.42 crore in the revised estimates for 2020-21.
Due to the epidemic, the state’s own tax revenue (STOR) collapsed in the first four months of the current financial year and the collection of state GST and value-added tax began from August last year.
The collection of stamp duty and registration fee has also revived, but the motor vehicle tax collection has not yet been fully recovered.
The epidemic had caused a huge decline in revenue, “but the expenditure level had to be raised to protect the welfare of the people,” he said.
Therefore, “it is entirely unavoidable that the government had to resort to borrowing as a result of the greater fiscal deficit,” he said.
In his two-and-a-half-hour plus address, he said that the government intends to borrow Rs 84,686.75 crore and the percentage of GSDP is expected to be 27.44 percent in 2022-23 and 27.50 percent in 2023-24. Well within the criteria outlined by the 15th Finance Commission.
The total debt outstanding is estimated at Rs 4,85,502.54 crore by 31 March 2021 and Rs 5,70,189.29 crore by 31 March 2022.
Budget, State GST revenue increased to Rs 45,395.50 crore in the last term of 2016-21 of AIADMK, excise duty Rs 9,613.91 crore and receipts Rs 56,413.19 crore and total business tax exceeded Rs 1.02 lakh crore.
A provision of Rs 11,982.71 crore has been made for agriculture and in the revised estimates (2020-21) the provision of food subsidy has been increased from Rs 6,500 crore to Rs 9,604.27 crore.
5,000 crore was allocated for the recently announced crop loan waiver scheme of Rs 12,110.74 crore by Chief Minister K Palaniswami.
The government made allocations to other departments including a huge subsidy of Rs 8,834.68 crore for the Tamil Nadu Generation and Distribution Corporation, a power generation and distribution unit in the state.
Overall, the SOTR in the Revised Estimates (2020-21) is expected to be Rs 1.09,968.97 crores, a decline of 17.64 per cent over the estimated Rs 1,33,530.30 crores as revenue by 2020-21 as budget estimates. Represents.
Mr. Panneerselvam urged the Center not to recommend a grant to the 15th Finance Commission to transfer its share of funding for the Central Sector and Centrally Sponsored Schemes.
“I reiterate my call to the Government of India to merge surcharges with the basic rate of tax so that the states receive a legitimate share of revenue.”
Further, the share of central taxes for the state indicated in the Union Budget at Rs 32,849.34 crore (2020-21) has been revised to Rs. 2,3,039.46 crores.