Tamil Nadu Budget aims to cut revenue deficit by Rs 7,000 crore

The DMK government in Tamil Nadu on Friday presented the Budget for 2022-23 in the Assembly and Finance Minister Palanivel Thiaga Rajan said for the first time since 2014, the revenue deficit is set to decrease by over Rs 7,000 crore.

Tthe main opposition AIADMK staged a walkout and boycotted the Budget presentation, the second by the DMK government after it assumed power in May 2021.

Citing the pandemic, the floods, and the government action to tackle the situation, Thiaga Rajan said such aspects had a negative impact on the stressed state’s fin­ances. 

In view of the prudent fiscal management, the overall revenue deficit has decreased to Rs 55,272.79 crore in revised estimates against the budg­eted Rs 58,692.68 crore.  The 15th Central Finance Commission recommended a fiscal deficit up to 4.5 per cent of GSDP to states in 2021-22. “However, the fiscal deficit as a percentage of GSDP has reduced to 3.80 per cent in the revised estimates from 4.33 per cent in the Budget estimates." 

The minister said Rs 2,531 crore for waiver of agricultural loans, Rs 1,000 crore for waiver of jewel loans and Rs 600 crore for waiving self-help group loans has been allotted. All girl students who studied from Classes 6 to 12 in government schools will be paid Rs 1,000 per month directly into their bank account till the uninterrupted completion of their undergraduate degree, diploma and ITI courses. The students will be eligible for this in addition to other scholarships.”