CHENNAI: Tamil Nadu’s overall debt is expected to the touch Rs 4 lakh crore in the coming 12 months and it is going to be placed third amongst states with top debt, after Maharashtra and Uttar Pradesh. Finance minister O Panneerselvam expects earnings and fiscal deficits to be lower in the coming 12 months; on the other hand, the revised estimates for 2018-19 display earnings deficit was once Rs1,800 crore more than the budget estimates and fiscal deficit was once Rs1,039 more than estimated.
“We needed to allocate crores of rupees right away towards endeavor reduction and rehabilitation in the cyclone-affected districts. This is the main reason for increase in the earnings deficit in the revised estimates of 2018-19,” said finance secretary Okay Shanmugam in the post-budget press meet. He refused to provide an explanation for why there are major differences in the budget estimates and the final accounts for a 12 months.
Similarly debt has been on the upward thrust though the government says it is going to be well within the limits set by means of the Centre. “The ever-increasing debt and consequent passion bills are a fear for the government. Debt has been increasing each 12 months and as a proportion of GSDP could also be with regards to 25%, which is the permissible prohibit. In 2015, the percentage was once 20% and for the approaching 12 months it is going to be 23.2%,” said Madras School of Economics director Okay R Shanmugam.
Interest expenditure is upper than the finance commission stipulation and could also be increasing. “While the finance commission has stipulated that passion bills should not go 15% of the total earnings receipts, Tamil Nadu’s passion bills are at 16.80% for the next financial 12 months and 16.14% for the present 12 months,” said KR Shanmugam.
Salary and pension expenditure account for nearly 40% of the government’s overall expenditure. Tamil Nadu expects not not up to Rs12,000 crore from the Centre beneath quite a lot of heads. “It's not that i am an astrologer to say why the government is not ready to keep an eye on its expenditure. I will be able to only say we can lower the deficit and hope to achieve the objective. Sitting outdoor anyone can say the rest, but actually managing the affairs is the problem,” said the finance secretary.
However, issues are taking a look up on the GST front. Tamil Nadu gained `34,589 crore throughout the primary 10 months of this fiscal. And, each month the state is seeing an 8% to 10% enlargement in GST earnings.
The government is banking on industry sentiment turning sure on the again of the global investors’ meet to spur economic task and bring in earnings to deal with fiscal well being.
“We needed to allocate crores of rupees right away towards endeavor reduction and rehabilitation in the cyclone-affected districts. This is the main reason for increase in the earnings deficit in the revised estimates of 2018-19,” said finance secretary Okay Shanmugam in the post-budget press meet. He refused to provide an explanation for why there are major differences in the budget estimates and the final accounts for a 12 months.
Similarly debt has been on the upward thrust though the government says it is going to be well within the limits set by means of the Centre. “The ever-increasing debt and consequent passion bills are a fear for the government. Debt has been increasing each 12 months and as a proportion of GSDP could also be with regards to 25%, which is the permissible prohibit. In 2015, the percentage was once 20% and for the approaching 12 months it is going to be 23.2%,” said Madras School of Economics director Okay R Shanmugam.
Interest expenditure is upper than the finance commission stipulation and could also be increasing. “While the finance commission has stipulated that passion bills should not go 15% of the total earnings receipts, Tamil Nadu’s passion bills are at 16.80% for the next financial 12 months and 16.14% for the present 12 months,” said KR Shanmugam.
Salary and pension expenditure account for nearly 40% of the government’s overall expenditure. Tamil Nadu expects not not up to Rs12,000 crore from the Centre beneath quite a lot of heads. “It's not that i am an astrologer to say why the government is not ready to keep an eye on its expenditure. I will be able to only say we can lower the deficit and hope to achieve the objective. Sitting outdoor anyone can say the rest, but actually managing the affairs is the problem,” said the finance secretary.
However, issues are taking a look up on the GST front. Tamil Nadu gained `34,589 crore throughout the primary 10 months of this fiscal. And, each month the state is seeing an 8% to 10% enlargement in GST earnings.
The government is banking on industry sentiment turning sure on the again of the global investors’ meet to spur economic task and bring in earnings to deal with fiscal well being.
Who’ll pay the piper? TN debt to hit Rs 4 lakh cr
![Who’ll pay the piper? TN debt to hit Rs 4 lakh cr]()
Reviewed by Kailash
on
February 10, 2019
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