PTIChennai: The MK Stalin government in Tamil Nadu on Friday projected its fiscal deficit to be within 3.5% of the state GDP next financial year, after reducing it to 3.80% this year from the previously projected 4.61%.
Presenting his budget for 2022-23, finance minister P Thiaga Rajan also said the state's revenue deficit for the current fiscal year ending March 31 was set to fall by Rs 7,000 crore, "reversing an alarming trend of increasing deficits every year since 2014". While giving the credit for this to the Stalin administration's political will, he said the government would adhere to the fiscal norms outlined by the 15th Finance Commission and reduce the state's fiscal deficit further to 3% in 2023-24.
Delivering the DMK government's first full-fledged budget, the finance minister said the full impact of dearness allowance revision, and the phased impact of loan waivers would be experienced in fiscal 2023. In addition, the state will have to absorb the full losses of TANGEDCO, its power generation and distribution company.
He also highlighted the geopolitical risks. "Global supply disruptions and demand shocks, including those triggered by the war, can adversely impact the state's tax revenue," he said. "There is a prevailing consensus among economists that both inflation and interest rates may rise."
The FM said some of the broad focus areas of the budget would be to enhance the growth rate of the primary sector, making youth employable by specific interventions at the school and college level and creating job opportunities by attracting new investments and encouraging existing entrepreneurs.
Presenting his budget for 2022-23, finance minister P Thiaga Rajan also said the state's revenue deficit for the current fiscal year ending March 31 was set to fall by Rs 7,000 crore, "reversing an alarming trend of increasing deficits every year since 2014". While giving the credit for this to the Stalin administration's political will, he said the government would adhere to the fiscal norms outlined by the 15th Finance Commission and reduce the state's fiscal deficit further to 3% in 2023-24.
Delivering the DMK government's first full-fledged budget, the finance minister said the full impact of dearness allowance revision, and the phased impact of loan waivers would be experienced in fiscal 2023. In addition, the state will have to absorb the full losses of TANGEDCO, its power generation and distribution company.
He also highlighted the geopolitical risks. "Global supply disruptions and demand shocks, including those triggered by the war, can adversely impact the state's tax revenue," he said. "There is a prevailing consensus among economists that both inflation and interest rates may rise."
The FM said some of the broad focus areas of the budget would be to enhance the growth rate of the primary sector, making youth employable by specific interventions at the school and college level and creating job opportunities by attracting new investments and encouraging existing entrepreneurs.
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