February 5, 2011 TN Govt's Interim Budget

Presenting the Interim Budget for 2011-12 in the State Assembly, Finance Minister K Anbazhagan, said

1) the budget did not contain any announcements regarding new schemes
2) promised to completely wipe out the revenue deficit, in conformity with the norms fixed by the Union Finance Commission, and end with a revenue surplus of Rs 439 crore.
3) revenue surplus went up from Rs 1,951 crore in 2005-06 to Rs 4,545 crore in 2007-08 despite the implementation of various welfare schemes
4) the global economic slowdown impacted the State due to which its tax revenues declined, resulting in the revenue surplus coming down to Rs 1,452 crore in 2008-09.
5) The implementation of the Sixth Pay Commission recommendations also led the State to face fiscal deficit in 2009-10.
6) due to implementation of the Sixth Pay Commission recommendations, increasing expenditure on various schemes, both existing and new,and welfare schemes being implemented by the Government, the state would have a revenue deficit of Rs 3,128.79 crore and fiscal deficit of Rs 17,607.71 crore in 2010-11.
7) With lower capital expenditure due to the completion of many infrastructure projects and reduced capital outlay for 2011-12, the fiscal deficit would be lower at Rs 13,506.84 crore with the fiscal deficit-GDSP ratio expected at 2.32 per cent. 
8) The debt to GSDP ratio, which was 22.29 per cent at the end of 2005-06, would be just 19.58 per cent at the end of 2010-11.
9) The State's own tax revenue-GSDP for 2010-11 will be 9.47 per cent. Tamil Nadu's own tax revenue was estimated at Rs 49,125 crore for 2010-11 and Rs 53,783 core for 2011-12.
10) projected double digit growth rates for receipts under Commercial Taxes, State Excise, Stamp Duty and Vehicle Taxes in the future, while non-tax revenue, which was currently estimated at Rs 4,280 crore, in the interim budget estimates contributed only 5.42 per cent of total revenue receipts
11) Salary and pension as a percentage of state's own tax revenue will be 72 per cent. However, the ratio of interest payments to total revenue receipts will be reduced to 11.07 per cent and 11.18 per cent in 2010-11 and 2011-12.