Chief Minister Rangasamy on Monday presented a please-all budget by announcing a cut in taxes on a slew of products including food, liquor, two wheelers, building materials, fertilisers, wet grinders and consumer items.
The cost of living is expected to come down in the Rs 5,890 crore budget, as Rangasamy, who holds the Finance portfolio, adopted rationalisation of the tax structure.
The gross budget comprises of Rs 2,000 crore under plan outlay, Rs 3,750 crore under non-plan outlay and Rs 140 crore for Central-sponsored schemes. This consists of Rs 5,013 crore revenue receipts and Rs 877 crore of Capital receipts.
The Revenue expenditure is Rs 4,965 crore and Capital expenditure is Rs 923 crore. The fiscal deficit in the budget as percentage of GSDP is 3 per cent, while the ratio of tax to GSDP is 10.9 per cent and interest payment to revenue receipt is 10.2 per cent. The borrowing and negotiated loans amount to Rs 611 crore and the remaining Rs 606 crore will be the Union territories own resources.
Unlike in the previous year, there are no major schemes or ambitious projects in this year’s budget.
However, the CM proposes to implement all the schemes in the “realistic budget”. “I am hopeful of utilising the full plan outlay,” said Rangasamy.
The CM was also hopeful of realising the loan component of Rs 611 crore, though, at present it is out of bounds.
This on account of outstanding debt amount of Rs 5,006 crore on March 31, 2013, which is 30.28 percent of the Gross State Domestic product (GSDP).The Chief Minister stated that he had taken up with the Government of India to allow the UT a debt GSDP ratio of 28 per cent at par with States, for availing loans.
He also requested the Centre for consolidation of loans taken by the UT and to have lower rate of interest so that the debt servicing will be reduced considerably. The decision on loan consolidation is awaited, said Chief Minister N Rangasamy.