The Tamil Nadu government has recorded a fiscal deficit for fiscal 2016-17 at Rs 56,170 crore up by 72.16 per cent from Rs 32,627 crore in 2015-16, according to a Comptroller and Auditor General of India report.
The report, which was tabled in the Assembly today, said Tamil Nadu had clocked revenue surplus during 2012-13 but it turned negative in succeeding years, the report said.
"During 2016-17 the state failed to achieve revenue surplus as projected in the MTFP (Medium Term Fiscal Plan). Though the state could contain its revenue deficit within the target proposed in the budget, it could not contain the fiscal deficit to GSDP as envisaged," it said.
The revenue receipts for 2016-17 stood at Rs 1,40,231 crore up by 8.70 per cent, the report said, adding the 8.70 per cent growth rate was much less than the growth rate of general category states which was at 11.52 per cent.
Capital expenditure clocked in 2016-17 was up by 9.02 per cent from 6.70 per cent registered in 2015-16.
The increase in capital expenditure was mainly in energy, water supply, sanitation, housing and urban development, irrigation and flood control, transport, health and family welfare.
On the investments made by the state-owned companies, the report said government infused capital of Rs 29,811 crore in statutory corporations, joint stock companies and cooperatives in 2016-17.
Though the average rate of return increased to 0.62 per cent in 2016-17 from 0.20 per cent in 2012-13, the report said the return on investment between 2012-17 was "meagre."
"The government paid interest at an average rate of 8.11 per cent on its borrowings during 2016-17," it said.
The CAG said outstanding liabilities of the state was at 21.82 per cent above the norm of 21.72 per cent prescribed by the Fourteenth Finance Commission.
The fiscal liabilities had increased from Rs 2,23,030 crore at the end of 2015-16 to Rs 2,83,394 crore end of 2016-17, the report said.
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