Jayalalithaa govt goes for tax-free budget ahead of next LS poll
During 2013-14, the projected revenue surplus would be Rs 664.06 crore while fiscal deficit would be Rs 22,938.57 crore, Finance Minister O Panneerselvam said in his budget proposals presented in the Assembly.
"The fiscal deficit will be 2.84 per cent of Gross State Domestic Product (GSDP), which is well within the stipulated norm of three per cent," he added.
The budget was prepared in the backdrop of "gloomy national economic scenario" and "waning investor confidence," he said, adding the recent Union budget "reveals absolutely no commitment on the part of the Union Government towards achieving the twin objectives of reversing the economic downtrend and controlling inflation." The state government was already "feeling the pinch" of slowdown as seen in lower growth of GSDP which according to Advanced Estimates was 4.61 per cent at constant prices.
"The severe drought and crop failure has hit us badly in the primary sector, which has ultimately affected service sector growth as well. The general economic slowdown in the national economy and shortage of power has hampered growth in the manufacturing sector," the Minister said in his Budget speech.
However, this would not mean the state would levy new taxes, he added.
"Inspite of pressures for vital expenditure and serious resource constraints, the Chief Minister has decided that, against the backdrop of
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