Tamil Nadu govt presents deficit budget, hopes to increase tax revenues
B Sivakumar | TNN | Updated: Feb 8, 2019, 11:53 IST
O PanneerselvamCHENNAI: The Tamil Nadu government on Friday presented a deficit budget. However, deputy chief minister and finance minister O Panneerselvam, who presented the budget in the assembly, was confident of lowering the fiscal and revenue deficit in the coming financial year.
Panneerselvam said, "There is favourable climate for state's economic growth and it is expected to increase the state's own tax revenues. The GST underwent difficulties in 2017 when it was implemented but later achieved a momentum."
The revenue expenditure in 2019-20 is expected to grow at 6.1% and likely to be Rs 2.12 lakh crore. Out of this salaries for government employees and teachers will be Rs 55,399.74 crore and pensions will be Rs 29,627.11 crore.
As in the previous years, the government has allocated Rs 6,000 crore towards food subsidy which includes the free rice scheme.
"A sum of Rs 5,164.98 crore is allocated towards urban local bodies and Rs 6573.61 crore towards rural local bodies as the finance commission devolution. A sum of Rs 3,852.17 crore is pending from the Centre for the urban and rural local bodies for the previous year," said Panneerselvam.
The government announced minimum support prices of Rs 50 and Rs 70 for ordinary and special varieties of paddy. A new government arts and science college will opened in Rameswaram as a tribute to late President A P J Abdul Kalam/
The budget allocated Rs 2,361 crore for cyclone Gaja relief work.
Under the Pradhan Mantri Awaz Yojana, the budget has allocated Rs 2276.14 crore and Rs 420 crore towards construction of 20,000 solar power green houses.
A comprehensive solid waste management project for the Greater Chennai Corporation has been prepared. Administrative sanction has been accorded in eight zones at a total cost of Rs 1546.04 crore. The government will accord sanction for this project.
Municipal administration and water supply will be allocated a total of Rs 18,700 crore. School education gets the maximum allocation of Rs 28757.62 crore.
"I am glad to announce that Tamil Nadu Housing and Habitat Development for urban poor will be launched in Chennai to construct 38,000 houses at a cost of Rs 4647.50 crore with World Bank assistance ," said the deputy chief minister.
The total debt is expected to increase to Rs 3.95 lakh crore and interest expenses is likely to be Rs 33,000 crore in the coming finance year.
Panneerselvam said, "There is favourable climate for state's economic growth and it is expected to increase the state's own tax revenues. The GST underwent difficulties in 2017 when it was implemented but later achieved a momentum."
The revenue expenditure in 2019-20 is expected to grow at 6.1% and likely to be Rs 2.12 lakh crore. Out of this salaries for government employees and teachers will be Rs 55,399.74 crore and pensions will be Rs 29,627.11 crore.
As in the previous years, the government has allocated Rs 6,000 crore towards food subsidy which includes the free rice scheme.
"A sum of Rs 5,164.98 crore is allocated towards urban local bodies and Rs 6573.61 crore towards rural local bodies as the finance commission devolution. A sum of Rs 3,852.17 crore is pending from the Centre for the urban and rural local bodies for the previous year," said Panneerselvam.
The government announced minimum support prices of Rs 50 and Rs 70 for ordinary and special varieties of paddy. A new government arts and science college will opened in Rameswaram as a tribute to late President A P J Abdul Kalam/
The budget allocated Rs 2,361 crore for cyclone Gaja relief work.
Under the Pradhan Mantri Awaz Yojana, the budget has allocated Rs 2276.14 crore and Rs 420 crore towards construction of 20,000 solar power green houses.
A comprehensive solid waste management project for the Greater Chennai Corporation has been prepared. Administrative sanction has been accorded in eight zones at a total cost of Rs 1546.04 crore. The government will accord sanction for this project.
Municipal administration and water supply will be allocated a total of Rs 18,700 crore. School education gets the maximum allocation of Rs 28757.62 crore.
"I am glad to announce that Tamil Nadu Housing and Habitat Development for urban poor will be launched in Chennai to construct 38,000 houses at a cost of Rs 4647.50 crore with World Bank assistance ," said the deputy chief minister.
The total debt is expected to increase to Rs 3.95 lakh crore and interest expenses is likely to be Rs 33,000 crore in the coming finance year.
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