CHENNAI: Replying to questions on revenue deficit, Deputy Chief Minister O Panneerselvam informed the Assembly that it was due to the 14th finance commission.
PTR Palanivel Thiyagarajan of DMK raised a question that revenue deficit is increasing and asked what is government’s plan to improve revenue. In response, OPS said, “I have already mentioned that revenue deficit was Rs 21,593.88 crore for 2017-2018 while it was Rs 23,459.44 for 2018-2019. It was due to decrease of fund sharing ratio to the State following recommendations of the 14th finance commission,” adding fund sharing was reduced to 4.023 per cent from 4.969 per cent and due to that, the State had incurred an average loss of Rs 6,000 crore per year.
The Deputy Chief Minister added, “The fund sharing increased to 4.189 per cent from 4.023 per cent following recommendations of 15th finance commission. Hence, there is a chance to decrease revenue deficit.