Prudent fiscal measures cut deficit by Rs 10k crore: PTR

CHENNAI: Finance Minister Palanivel Thiaga Rajan on Tuesday said the DMK government, within a short period of 10 months in office, brought down the fiscal deficit by Rs 10,000 crore due to prudent fiscal measures and efficient administration. The deficit would further be brought down in the coming years till it reaches permissible limits as allowed in the Fiscal Responsibility and Budget Management Act, he said.

The minister was replying to a question by former Speaker and AIADMK MLA P Dhanapal in the debate on budgets for 2022-23. Dhanapal had said: “During the revised budget for 2021-22, it was observed that it would take two-three years to set right the financial position of the State and the government would do so. I do accept that within 10 months of assuming office, a government cannot set right the financial position fully. But there is no indication in the budget that this government is taking steps towards that goal.”

Intervening, Rajan said: “When this government presented the revised budget for 2021-22, the State was under the grip of the second wave of Covid-19. At that time, I said we expected the fiscal deficit to be around Rs 92,000 crore. But, due to efficient administration and fiscal prudence measures, we have brought the fiscal deficit by Rs 10,000 crore. The percentage of interest being paid on loans would also be brought down,” he added.

To Opposition leader Edappadi K Palaniswami’s remark  that the DMK government could bring down the deficit by Rs 10,000 crore because of fewer restrictions and higher income during the second wave, Rajan said expenditure too had gone up due to provisions like Rs 4,000 per family cardholder and other welfare measures.