Keeping in mind the upcoming general elections, the Tamil Nadu government on Thursday refrained from introducing any tax and presented a R664.06-crore revenue-surplus budget for 2013-14, which it attributed to its ?prudent fiscal management? initiatives, amid a gloomy national economic scenario.

Despite pressure for vital expenditure and serious resource constraints, and against the backdrop of the slow growth of the Indian economy in general and its possible repercussion on the state?s economy in particular, finance minister O Panneerselvam announced that ?no new tax will be imposed nor will any existing tax rate be hiked in this budget?.

The state has projected a net revenue surplus of R664.06 crore and a fiscal deficit of R22,938.57 crore of 2.84% of the GSDP, which is well within the 3% norm of the 13th Finance Commission, he said. The revenue receipts for 2013-14 are pegged at R118,579.87 crore, including the state’s own tax revenue of R86,065.40 crore in budget estimates of 2013-14, a growth of 17%.

According to the minister, the receipts under commercial taxes is pegged at R56,025.24 crore in the budget estimates of 2013-14, a growth of 17.62% over the revised estimates of 2012-13. The state’s excise receipts have been estimated at R14,469.87 crore, an increase of 16% over the revised estimates of 2012-13. The share of Tamil Nadu in the Centre’s devolvable net tax revenue was reduced from 5.374% to 5.047% in case of service tax and from 5.305% to 4.969% in case of other taxes, while the stamp duty and registration fees collection is pegged at R9,874 crore. Therefore, share in central taxes for the state has been estimated at R17,285.66 crore. The revenue expenditure has been pegged at R117,915.81 crore, which shows a growth of 15% over the revised estimates of 2012-13, Panneerselvam said.

According to him, the state government has proposed a net borrowing of R21,142 crore to finance its FY14 capital expenditure against an approved limit of R24,263 crore, as it planned to manage the affairs with prudent fiscal initiatives. Though it was allowed to borrow R20,716 crore in FY13, the government restricted the net public borrowing to R15,675 crore only, he said.

He pointed out that the tax-GDP ratio in the state is one of the best in India. It was 9.3 in 2011-12 and 10.3 as per the revised estimates in 2012-13. The favourable tax-GDP ratio can be attributed to the transparent tax administration and efficient tax collection, he said. During 2013-14 too, the state’s finances would exhibit a favourable tax-GSDP ratio, he added.

According to the finance minister, a land bank of 25,000 acre will be created during the year through SIPCOT to attract more industries.

He also said a special package of incentives for encouraging investments for the development of industrially backward districts in the state?s south would be announced soon, which will attract huge investments while creating jobs.