FinMin PTR introduces Bill to amend Fiscal Responsibility Act
CHENNAI: Introducing a Bill to amend the Tamil Nadu Fiscal Responsibility Act 2003, Finance Minister Palanivel Thiaga Rajan on Tuesday extended the deadline set to eliminate revenue deficit and reduce fiscal deficit to three per cent of Gross State Domestic Product, to March 31, 2024.
The amendment Bill was introduced based on the recommendation of the 15th Finance Commission. In its report for 2021-2026, the Commission provided extra annual borrowing space for States, to the magnitude of 0.50 per cent of their Gross State Domestic Product for each of the first four years of the award covering the period 2021-22 to 2024-25.
Further, the Commission also recommended fixing net borrowing limit to Gross State Domestic Product at four per cent, 3.5 per cent and 3 per cent, for the years 2021-22, 2022-23, and 2023-24 to 2025-26 respectively.