Notwithstanding a significant revenue deficit and increase in net borrowings, there were sufficient funds to source social welfare projects of the the Tamil Nadu government, Chief Minister O Panneerselvam said here today.
While borrowings were meant for capital expenditure, they were still well within prescribed limits, he told the Assembly during a debate on the Budget presented by him on Wednesday.
"Borrowings are being done with an intention to boost economic growth as that brings tax revenue which will help address the deficit," Panneerselvam said.
The government had earmarked sufficient funds for its social welfare schemes, and that the ruling AIADMK's latest budget was not only tax-free but had offered tax sops to the tune of Rs 650 crore aimed at giving a boost to the manufacturing sector.
Panneerselvam had presented a Rs 4,616 crore deficit budget on Wednesday, where he had said that the government's net borrowings is likely to be Rs 30,446.68 crore during the next fiscal.
