TN govt presents tax free budget
Tamil Nadu

TN govt presents tax free budget

Agency News

Chennai, Feb 8 : Tamil Nadu Deputy Chief Minister O Panneerselvam, who also holds the Finance Portfolio, on Friday presented a tax free budget for the year 2019-20, with the Revenue deficit expected to come down to Rs 14,315 crore in the coming years.

Presenting the budget proposals in the State Assembly, he said despite the adverse impact of reduced inter-se share in devolution due to the 14th Finance Commission recommendations, the State was able to implement the Ujwal  DISCOM Assurance Yojaya (UDAY) Scheme and pay revision.

Stating that the growth in State's Own Tax Revenue (SOTR) was 9.07 per cent during 2017-18 and was expected to exceed 14 per cent during 2018-19, he said these positive trends in tax receipts would help in reducing the revenue deficit for the year 2019-20 to Rs 14,315 crore as against the projected Rs 19,319 crore in the 2018-19 Revised Estimates.

'With higher SOTR growth, coupled with the phasing out of the impact of UDAY and pay revision, the state expects to bring down the revenue deficit in the coming years,', Mr Panneerselvam said.

Pointing out that Tamil Nadu was one of the best performing states in implementing the GST and has achieved good growth in GST revenues, he said, however, the State was yet to receive its due share of IGST to the tune of Rs 5,454 crore as well as the assured GST compensation of Rs 455.16 crores for the year 2017-18.

He said the delay in release of these dues by the Centre was impinging on the State's Finances. (UNI)