CHENNAI: The State’s Own Tax Revenue (SOTR) would see a “good growth” in the forthcoming year, according to TN Finance Secretary N Muruganandam. “The economy is picking up and hopefully, there won’t be any disruptions like the ones we had in the last two or three years. We expect 17 per cent growth in SOTR during 2022-23,” he said, addressing a post-budget press conference on Friday.
“We are planning to bring down the fiscal deficit further to 3.2 per cent during the next financial year and in the next year, within 3 per cent.” A government official said the credit of reducing the revenue deficit goes to the data purity project through which databases of old age pension, insurance and public distribution system were scrutinised. “It was found that dead persons were getting pensions. They were knocked off from the database. Many such ration cards were detected, and deleted.”
The total Revenue Expenditure in the Revised Estimates for 2021-22 is estimated at Rs 2,59,150.97 crore, a shade below the Budget Estimates of Rs 2,61,188.57 crore. However, the State’s own tax revenue and non-tax revenue failed to meet targets, amid the “pandemic and unprecedented floods”.
The shortfall has been made up by an increase in share from Central Taxes and grants-in-aid from the Union Government. The share in Central Taxes is estimated at Rs 33,580.22 crore in the Revised Estimates as against Rs 27,148.31 crore in Budget Estimates. There is an increase in the share in Central Taxes component due to better tax collection by the Centre and release of pending arrears.