Tax-free, deficit budget presented in Tamil Nadu

Chennai, Feb 16 (IANS) Sparing the common man any new taxes despite the state experiencing fall in revenue, Tamil Nadu Finance Minister O.Panneerselvam on Tuesday presented a Rs.9,154.78 crore deficit interim budget for 2016-17.

The interim budget came as the state is poll-bound and following the convention, no new schemes were announced in the interim budget.

Presenting the budget, Panneerselvam said the total revenue receipts have been estimated at Rs.1,52,004.23 crore and total revenue expenditure have been estimated at Rs.1,61,159.01 crore.

"It is pertinent to mention here that such huge revenue deficit is unavoidable due to falling of the state’s own tax revenue especially sales tax revenue from petroleum products," he said.

"Further, when the state is implementing many unique schemes such as the green house scheme, free distribution of fans, mixies, grinders and laptop computers scheme, special public distribution system, social security pension schemes etc., such revenue deficit is unavoidable," he said.

According to him, many other states even without implementing such freebie and other schemes are also facing huge reveue deficits.

He said the fiscal deficit for 2016-17 is projected at Rs.36,740.11 crore while in the revised estimates for 2015-16 it is estimated to be Rs.32,359.59 crore.

While the outlay for the annual Plan 2016-2017 will be finalized after the legislative assembly elections, a tentative allocation of Rs.60,610 crore has been proposed in the interim budget, Panneerselvam said.