Tamil Nadu finance minister O Panneerselvam has imposed fresh taxes on a number of items in the budget to mobilise up to R1,500 crore and proposed to borrow R18,387 crore, as a result of which the total debt is set to shoot up to R135,060.47 crore.
The finance minister has levied taxes on liquor sourced from outside the state. It has also imposed a 5% levy on vegetable oil for companies that have a turnover of over R5 crore, rationalised the tax structure on tourist taxis, maxi-cabs and construction equipment vehicles.
On the other hand, he has given full exemption to wheat, oats and insulin and slashed the duty on e-bikes, CFL lamps and tubes from 14.5% to 5%.
In his budget speech, the state finance minister projected total receipts of R100,589.92 crore for the next financial year with a revenue expenditure of R98,213.85 crore, leaving a revenue surplus of R2,376.07 crore in 2012-13.
While the fiscal deficit for the next financial year is projected at R19,832.13 crore? 2.87% of the GSDP ? the total debt is expected to be around R135,060.47 crore, constituting 19.6% of GSDP, well within the 13th Finance Commission’s permitted level of 24.8% of GSDP, said Panneerselvam. According to him, the budget estimates for 2012-13 have been designed to further improve the financial position of the state government.
he said the state’s own tax revenue is projected to be R71,460.55 crore and the state’s non-tax revenue will be R6,032.61 crore.
The share in central taxes is estimated as R15,032.47 crore and grants-in-aid from the Union government is estimated to be R8,064.29 crore. The total expenditure will be R20,856.08 crore and the total provision for loans and advances will be R1,352.12 crore, thereby leaving a fiscal deficit of R19,832.13 crore.
It is interesting to note that the state government had a revenue surplus of R536.54 crore during the current financial year (2011-12), although it had projected it to be at R173.87 crore.
