State budget for financial year 2021-22 was presented today by deputy Chief Minister and Finance Minister O Panneerselvam. The economic growth of the state has dwindled to 2.02 per cent from the usual 7 per cent. However, the expected growth for the next financial year 2021-22 is at 11.5 per cent.
Tamil Nadu's tax revenue declined by 18 per cent, at about Rs 1 trillion in 2020-21 as per the revised budget. In the aggregate, the State-owned tax revenue (SOTR) is expected to be Rs 1.09 trillion in the revised estimates, down 18 per cent against Rs 1.33 trillion anticipated as revenue in the budget estimates.
Fiscal deficit of the state government is expected to widen to Rs 96,889.97 crore, which is five per cent of its GSDP. The state government will be crossing the 3 per cent line of fiscal deficit for the second time in the past five years.
Tamil Nadu’s total debt, which was Rs 1 lakh in 2011, has increased to Rs 5.70 lakh crore which is 26.69% of the GSDP. The government is not confident to lower the debt but expects it to increase to 27.44% in 2022-23 and 27.50% of the GSDP in 2023-24.
“The government plans to borrow a net amount of Rs 84,686.75 crore in the present financial year. The revenue deficit in the revised estimates for 2020-21 is expected to be Rs 65,994.06 crore against the budget expectations of Rs 21,617.64 crore,” said Panneerselvam. The government expects the revenue deficit to be Rs 33,510 crore in 2022-23 and Rs 24,483 crore in the next year.