Tamil Nadu Budget 2021

‘Focus is on plugging leakages’

The Tamil Nadu government is focused on plugging leakages in revenue collection, with the main focus likely to be on the Commercial Taxes and Registration Departments, as Finance Minister Palanivel Thiaga Rajan looks to shore up the revenues.

Finance Secretary S. Krishnan said the State’s revenue targets laid out in the revised Budget were likely to be achieved by plugging the leaks and enforcement. He said the revised Budget came at a tough time when the pandemic led to revenue losses and increased expenditure. He said some decisions in the revised Budget had been taken based on the need to fulfil the electoral promises of the DMK. The revised Budget, he said, would provide a roadmap for administration and delivery in the coming years and had several elements to administer government assets better.

“Some revenue losses have happened naturally,” he said, adding that the Budget would show the way for generating revenue where issues had been identified.

On the State’s Own Tax Revenues, he said there had been good growth in April and May, and they fell in June. “We are awaiting the number for July. I am hopeful that the second wave is more or less contained, and economic activity should pick up. We can expect significant growth in the second part of the year,” he said.

On the rationale behind reduction in tax on petrol and not diesel, he said there were nearly 2.63 crore two-wheelers in the State, mostly used by the working class, the poor and the middle class. “The pattern of diesel usage has changed — mostly for public transport. Owing to COVID-19, the use of public transport has come down. Increasingly, diesel use is seen mainly in luxury vehicles,” he said. He said petrol and diesel contributed around ₹22,000-₹23,000 crore to the State’s own tax tevenues every year, and the reduction of ₹3 per litre in the State tax on petrol would lead to a revenue loss of ₹1,160 crore for the full year. “We will offset this in due course,” he said.

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Printable version | Dec 2, 2021 10:41:22 PM | https://www.thehindu.com/news/national/tamil-nadu/focus-is-on-plugging-leakages/article35906105.ece

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