Fiscal deficit has been projected at Rs. 36,740.11 crore. Its ratio to
the Gross State Domestic Product (GSDP) had been contained at 2.92 per
cent.
“This is well below the limit prescribed by the fourth Finance
Commission. Even though the State is entitled for budgetary borrowing of
Rs. 37,782 crore, it has been restricted to Rs. 35,129 crore in the
interim budget estimates,”Finance Minister O.
Panneerselvam.said
The implementation of a host of welfare schemes and a fall in the
State’s tax revenue, especially because of reduced income from sales tax
on petroleum products were the main reasons, explained Finance Minister O.
Panneerselvam.
As a result, the State will, for the third year in
succession, be unable to meet its fiscal responsibility norm of zero
revenue deficit.
The Tamil Nadu Fiscal Responsibility and Budget Management Act, 2003,
will be amended suitably to permit the revenue deficit, he said.
The
amendments would be taken up when the revised budget estimates for the
current year are presented in the Assembly.
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