TN economy is on upward growth trajectory: O Panneerselvam

Meanwhile, Finance Secretary K Shanmugam gave details about the growth of SOTR during the current fiscal.

Published: 09th February 2019 04:25 AM  |   Last Updated: 09th February 2019 04:25 AM   |  A+A-

Tamil Nadu Deputy CM O Panneerselvam (File | EPS)

By Express News Service

CHENNAI: Deputy Chief Minister O Panneerselvam on Friday told the Assembly that the State economy was on an upward growth trajectory which was evident from the increase in GSDP growth rate in real terms, from 5.37 per cent in 2012-13 to 8.16 per cent in 2018-19 despite the temporary setbacks.
In the medium term fiscal plan laid in the House, Panneerselvam said, “The State’s Own Tax Revenue is estimated to be Rs 1,10,178.43 crore in the revised estimates 2018-19.  It is estimated to increase to Rs 1,24,813.06 crore in the budget estimates for 2019-20.  Growth rates of 13.12 per and 13 per are assumed for 2020-21 and 2021-22 respectively.”

The major components of SOTR growth during 2019-20  include estimated receipts from the commercial taxes (Rs 96,177.14 crore), State excise duty collection (Rs 7.262.33 crore), stamp duty and registration fee (13,122.81 crore) and collections under the taxes on motor vehicles (`6,510.70 crore).The Deputy CM said the State’s own non-tax revenue has been estimated at Rs 13,326.91 crore during 2019-2020.

Chief Minister Edappadi K Palaniswami and Deputy
Chief Minister O Panneerselvam with the budget
documents before the presentation of State budget,
at the secretariat on Friday |d sampath kumar

Meanwhile, Finance Secretary K Shanmugam gave details about the growth of SOTR during the current fiscal. “As far as SOTR is concerned, our growth rate during 2018-19 was 17.54 per cent.  We have projected 13.28 per cent for 2019-20.  The reason for this slight reduction is the revenue generated through petroleum products during the current year and next year, we can’t expect that next year.   Similarly, from the IMFL also we have made a very moderate projection of eight per cent only,” he added.  

“Last year, the revenue growth was about 15 per cent.  In the current year, through GST, Rs 33,198 crore has been collected up to December, 2018.  Revised estimate projection for GST is Rs 45,625 crore.  For next year, we have projected Rs 53,739 crore,” Shanmugam said.  Explaining the steps being taken to improve the State economy, Shanmugam said efforts had been made in the budget to keep the debt burden under control while bringing down the revenue deficit level.  Emphasis was laid on reducing the fiscal deficit during 2019-20 than the current financial year. 

On the ever-increasing debt burden of the State, Shanmugam explained that it depended upon the GSDP growth every year.  “For example, the fiscal deficit is measured on the fiscal deficit percentage - i.e., the GSDP.   It also applies to the loan - as a percentage to the loan outstanding.  So the norms fixed by the GoI for the State ’s financial borrowing should be within 3 per cent.  And the loan outstanding debt should be within 25 per cent. We are very well within the limits.” 

Asked what are the States having a debt burden of over Rs 4 lakh crore, the Finance Secretary said, “Such comparison is inappropriate as some smaller States might have bigger debt burden and vice versa.  But certainly Tamil Nadu is not in the bottom of the few States. We are well above that.”

Rs 186 cr allotted for tourism sector

The State government has allocated Rs 186 crore in the Budget 2019-20 for the tourism sector. The government will launch a massive tourism promotion project to further attract domestic and international tourists, said Deputy Chief Minister O Panneerselvam on Friday.

“Under the project the government will identify specific circuits for the western, Asian and domestic tourists and will upgrade identified centres in these circuits with quality amenities and infrastructure,” said Panneerselvam. A sum of Rs 100 crore has been provided as an initial investment in the budget for this project, the Deputy CM added

Centre of Excellence for emerging tech

Tamil Nadu will soon set up a Centre of Excellence for Emerging Technologies to make optimum use of new technologies to serve the people in a better way, Deputy chief minister O Panneerselvam said while presenting the budget on Friday.

The Centre of Excellence will be started by Tamil Nadu e-Governance Agency (TNeGA). The government will harness artificial intelligence, machine learning, blockchain, big data, drones and Internet of Things (IoT) through the centre to serve the people better. It will also encourage innovations in the sector.

The government will release soon a new Electronics Hardware Manufacturing policy. Nearly Rs 140.62 crore has been allocated for the Information Technology Department in this year’s budget.

How much the Centre owes TN?

While presenting the State Budget on Friday, Deputy CM  O Panneerselvam made sure to mention the funds due to Tamil Nadu from the Centre. Here’s a tally

  • Rs 5,454 crore Share in Integrated GST 
  • Rs 455.16 crore Assured GST compensation  for 2017-2018 Rs 560.15 Performance grant from GoI as recommended by Central Finance Commission for 2017-18
  • Rs 3,852.17Basic and Performance grant to local bodies for 2018-19 
  • Rs 2,109.08 croreArrears under Sarva Shiksha Abhiyan  
  • Rs 1,092.22 croreArrears under Rashtriya Madhyamik Shiksha Abhiyan 
  • Rs 985.80 croreArrears for post-matric Adi Dravidar & Tribal Welfare 
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