No new taxes, schemes in TN Budget this year
Tamil Nadu’s fiscal deficit has breached the Fiscal Responsibility Budget Management (FRBM) norms in 2016-17 at 4.58% of the Gross State Domestic Product (GSDP). However, no new taxes have been introduced in the budget.
Finance Minister D. Jayakumar in his budget speech said that this breach “is only due to Tangedco’s debt takeover and is temporary”.
In 2016-17, the government took over Tangedco’s debt to the tune of Rs. 22815 crore that pushed the fiscal deficit beyond the Tamil Nadu Fiscal Responsibility norm of 3 % of GSDP, Mr. Jayakumar said.
Excluding the debt takeover, the fiscal deficit in 2016-17 will be 2.88% of the GSDP, he said.
The State’s own tax revenue has seen a significant fall mainly due to fall in Stamps and Registration fees.
But tax realisation in commercial taxes is expected due to revision of tax rates on petrol and diesel.
The State’s own tax revenue is expected to increase to Rs. 99, 590 crore in the budget estimates for 2017-18 from Rs. 87,287 crore in the revised estimates for 2016-17.
No new major schemes have been announced in the budget though allocation for already existing schemes have been made.