Tamil Nadu’s revised budget pegs FY22 fiscal deficit at 4.3%

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August 14, 2021 2:30 AM

“Our primary ambition for this revised budget is to lay the strongest foundation for the full budget for the financial year 2022-23 which the government will present in about six months,” he said.

A total provision of Rs 19,873 crore has been made in the revised budget estimates 2021-22 towards subsidies to free supply of agricultural power, domestic supply and for take over of losses of TANGEDCO.A total provision of Rs 19,873 crore has been made in the revised budget estimates 2021-22 towards subsidies to free supply of agricultural power, domestic supply and for take over of losses of TANGEDCO.

The Tamil Nadu government on Friday presented a revised budget for 2021-22, pegging the fiscal deficit at 4.33% of GSDP, as against 3.94% estimated in the interim budget presented by the previous government in February this year.

Finance minister Palanivel Thiaga Rajan, presenting the budget, said the revised budget for 2021-22 will only impact the remaining six months of this financial year. The sheer magnitude of the second wave of Covid over the past few months, and its health and economic consequences have further constrained the government’s flexibility in what was already a precarious fiscal position.

“Our primary ambition for this revised budget is to lay the strongest foundation for the full budget for the financial year 2022-23 which the government will present in about six months,” he said.

Detailing measures taken for improving the governance, the finance minister said the government will establish an advisory council to develop a federal fiscal model with renowned experts on legislation involving revenue and taxation (including GST). There has been a proposal for a cross-departmental initiative to link all available government data sources to better understand the true economic status of all citizens and households.

He announced a major initiative for smart metering for all public utilities in the state and e-procurement will be mandatorily adopted across all procuring entities. A separate e-procurement portal will be created for the Tamil Nadu government to enhance transparency in government procurement.

The entire workflow process of all engineering departments including, updated standard data book and schedule of rates, planning and design, estimate preparation, tendering, measurement of works, payment of bills and recording completion will be fully electronically enabled to increase efficiency and transparency.

A total provision of Rs 19,873 crore has been made in the revised budget estimates 2021-22 towards subsidies to free supply of agricultural power, domestic supply and for take over of losses of TANGEDCO.

On the industries front, Rajan said the single window system will be effectively implemented and 100 more services have been brought under the single window portal by July 2021 and a further 110 services by March, 2022. The Tamil Nadu Business Facilitation Act, 2018 will be amended to enable new industrial units including MSMEs to establish and operate based on self certification without inspections and obtaining clearances under various state laws for the initial three years.

An industrial database with more detailed and accurate information about the whole state will be prepared to enable better planning and to support investment decisions by prospective investors.

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