Tamil Nadu Budget: Govt to Reduce Revenue Deficit by Rs 7,000 crore

The DMK government in Tamil Nadu presented the Budget for 2022-23 in the Assembly on Friday (18 March 2022), and Finance Minister Palanivel Thiaga Rajan stated that the revenue deficit will be reduced by over Rs 7,000 crore for the first time since 2014.

The main opposition AIADMK staged a walkout and boycotted the DMK government's second budget presentation since taking power in May 2021.

Thiaga Rajan cited the pandemic, the floods, and the government's response as examples of factors that had a negative impact on the stressed state's finances.

Due to prudent fiscal management, the overall revenue deficit has been reduced to Rs 55,272.79 crore in revised estimates, down from Rs 58,692.68 crore in the budget.

The 15th Central Finance Commission advised states to run fiscal deficits of up to 4.5 percent of GDP in 2021-22. "However, the fiscal deficit as a percentage of GSDP in the revised estimates has decreased from 4.33 percent in the Budget estimates to 3.80 percent in the revised estimates."

According to the minister, Rs 2,531 crore has been allocated for the waiver of agricultural loans, Rs 1,000 crore for the waiver of jewel loans, and Rs 600 crore for the waiver of self-help group loans.

All girl students in government schools from Classes 6 to 12 will be paid Rs 1,000 per month directly into their bank accounts until they complete their undergraduate degree, diploma, or ITI courses without interruption. This will be in addition to other scholarships available to the students."

According to Finance Minister Palanivel Thiaga Rajan, the Tamil Nadu government will purchase 500 new electric buses and 2,213 diesel-powered buses with KfW assistance in the coming fiscal year to improve mobility in the state and provide public transportation.

"Under the 'Climate-Friendly Modernisation of Buses in Major Cities of Tamil Nadu' Project being implemented with KfW assistance, 2,213 BS-VI new diesel buses and 500 new electric buses will be procured," he said in presenting the state budget for 2022-23 in the Assembly.