The total revenue receipts for the year pegged at Rs.85,685 crore
Drinking may not be the most desirable of virtues, but there is no denying that the habit keeps the State's finances afloat. Budget figures show that as much as one fifth of Tamil Nadu's revenue comes from sale of liquor and other levies on it.
And petroleum products – whose prices have been repeatedly raised in the last few months – also contribute significantly to the State's coffers.
State excise receipts for 2011-12 have been estimated at Rs.10,191 crore, and commercial tax on Indian made foreign liquor and beer accounts for an income of Rs.7,755 crore, bringing the total revenue accruing from alcohol to Rs.17,946 crore. The total revenue receipts for the year are pegged at Rs.85,685 crore.
Taxes on petroleum products are estimated to bring in Rs.7,867 crore this year, as against Rs.6,840 crore last year. Officials say the State has decided to forgo Rs.120 crore by taking a cut in local taxes on LPG cylinders to cushion the common man against price hike.
Buoyancy in commercial tax collection continues to be the bulwark of the State's finances. The State government hopes to garner Rs.37,196 crore through value added tax this year, a significant increase over last year's final collection figure of Rs.28,614 crore.
Stamp duty, bolstered by the economic recovery in the last year, will also help the government gain more revenue this year, as income from this non-tax head is estimated to be Rs.6,492 crore (last year Rs.4,650 crore). The State will gain an estimated Rs.3,235 crore from taxes on vehicles.
The State's own tax revenue for the year will touch Rs.59,787 crore, a 25 per cent increase over the figure of Rs.47,781 crore with which it ended the fiscal 2010-11.
The State's share in Central taxes – income tax, central excise and service tax – has been estimated at Rs.13,111 crore this year, while grants-in-aid from the Union Government will be of the order of Rs.7,772 crore.
Government salaries (Rs.27,091 crore) and pension (Rs.11,942 crore) to 6.53 lakh retired employees account for 46 per cent of the State's total spending of Rs.85,511 crore from its revenue account.