Tamil Nadu’s tax revenues continue to grow at a healthy clip despite the sombre sentiment in the manufacturing sector.
But the dwindling contribution as share from the Central Taxes is a concern, said Finance Minister O. Panneerselvam.
Presenting the State budget for 2013-14, he said the State’s own revenue is targeted at Rs 86,065 crore, 17 per cent higher than that of the current year. The State Government’s finances are back on track enabling the second consecutive revenue surplus budget.
In 2010-11 it was running a deficit of Rs 2,728 crore.
But the substantial reduction in receipts from the Central Government, which is down by about Rs 500 crore has added to the pressure, he said. The share from Central Government is about Rs 17,285 crore.
Also, the cash-strapped electricity utility, the Tamil Nadu Generation and Distribution Corporation has proved to be a heavy burden.
Though Budget estimates for 2012-13 were pegged at Rs 2,376 crore, the revised estimates are down to Rs 451 crore. In the coming year the revenue surplus is estimated at Rs 664 crore.
The State will exceed the annual plan target of Rs 28,000 crore in 2012-13. The allocation for the coming year has been increased to Rs 37,000 crore.
Tamil Nadu Finance Secretary K. Shanmugam addressing reporters after the budget presentation, said the major sources of revenue have been buoyant during the year and the trend is expected to hold in the coming financial year.
Commercial taxes, State Excise, Vehicle Tax and Stamp Duty are growing at a healthy pace. The efficient tax collection machinery is a contributing factor. Projections “are almost on target” as indicated by actual collections as of January, he said.
The healthy contribution has helped focus on social sectors including food, health and education which account for nearly one-third of the total Budget.