Tamil Nadu finance minister O Panneerselvam on Monday presented a revenue surplus state Budget, while promising to keep fiscal deficit within three per cent of the Gross State Domestic Product (GSDP). The revenue expenditure during 2012-2013 is estimated at Rs 98,213.85 crore, led by allocation of salaries and the freebies scheme launched by the state government.
“The state has shown remarkable fiscal recovery in the last 10 months. The state will achieve all the targets set by the 13th Finance Commission for 2012-2013 and will also be able to maintain the same success in the forthcoming years,” Panneerselvam said in his Budget speech.
It is estimated that the revenue surplus for 2012-2013 will be Rs 2,376.07 crore. The state will also continue to maintain revenue surplus in 2013-2014 and 2014-2015. Fiscal deficit for 2012-2013 is estimated as Rs 19,832.13 crore. This would constitute 2.87 per cent of the GSDP. In the forthcoming years, FD-GSDP ratio will be 2.88 in 2013-2014 and 2.86 in 2014-2015.
The total revenue receipts of the state government are estimated at Rs 100,589.92 crore in 2012-2013. These include the state’s own tax revenue of Rs 59,932.31 crore as per the revised estimates for 2011-2012. It is estimated to increase to Rs 71,460.55 crore in the Budget estimates for 2012-2013. This would mean a growth of 19.24 per cent. The state’s own tax revenue-GSDP ratio for 2012-2013 will be 10.35 as per the Budget estimates for 2012-2013. A growth rate of 15 per cent is assumed to 2013-2014 and 2014-2015, the finance minister said.
Non-tax revenue is estimated at Rs 6,032.61 crore in the Budget estimates for 2012-2013. "In view of the limited mining potential of our state as well as the fact that most of the government services are delivered free of cost or only at a nominal rate, the non-tax revenue is estimated only at a low growth rate of nine per cent as compared to the revised estimates for 2011-2012. A growth rate of three per cent is assumed for 2013-2014 and 2014-2015, Panneerselvam said.
Capital expenditure in 2012-2013 increased to Rs 20,856.08 crore from Rs 16,388.34 crore in revised estimates for 2011-2012. This represents a hike of 27 per cent.
This is expected to grow at 15 per cent in 2013-2014 and 2014-2015. The expenditure on capital account inclusive of loans and advances is estimated at Rs 22,208.20 crore in 2012-2013, he said.
Revenue expenditure during 2012-2013 is estimated at Rs 98,213.85 crore, which shows a growth of 15.5 per cent over the revised estimates for 2011-2012.
“The launching of a large number of developmental schemes and increasing the quantum of assistance under the existing schemes, along with the planned filling up of the vacancies, is responsible for this increase,” the minister added.
The allocation for salaries is Rs 29,212.36 crore and for pension it is Rs 13,023.50 crore in 2012-2013. Together, salaries and pensions constitute 43 per cent of the total revenue expenditure in this Budget.
The allocation for subsidies and grants is Rs 36,190.67 crore in the Budget estimates for 2012-2013. The high allocation is necessary due to various welfare schemes announced by the government like distribution of free rice, pensions and marriage assistance schemes, maternity assistance scheme, provision of milch, cows and goats and sheep etc.... gives major fillip to farm sector
Agriculture sector has received Rs 3,804.96 crore allocation in the 2012-13 state Budget, which was presented by Tamil Nadu finance minister O Pannerselvam here on Monday. “This will be the highest-ever allocation to the sector in the state's Budget,” he said.
As against the target of Rs 3,000 crore to be given as crop loans by co-operative institutions, Rs 3,113 crore has been disbursed to 8,60,000 farmers so far in 2011-2012.
“This government has fixed the crop loan target of the co-operative sector at Rs.4,000 crore for 2012-2013. This crop loan will be interest-free for farmers who repay promptly. An amount of Rs 160 crore has been set apart for this interest subvention in this Budget. The government has also set aside Rs 252.65 crore towards the state’s share of premium for agriculture insurance as well as excess compensation to be paid to the farmers,” the finance minister said.
“We will continue to focus on farm productivity, farm and crop diversification, promoting farm mechanisation, increasing water usage efficiency, strengthening post-harvest infrastructure and value-addition to agricultural produce.
The adequate flow of funds into this sector has been ensured through the highest-ever allocation,” Pannerselvam.
The state government had set a target of 115 lakh metric tonne of food grain production for 2011-2012, as against 75.90 lakh metric tonne in 2010-2011. “I am hopeful that the food grain production will be 115 lakh metric tonne during 2011-2012 due to the timely and prioritised actions of this government,” he said. For the next financial year, the government is targeting to achieve food grain production of 120 lakh metric tonne.