The State's fiscal deficit is not a cause for worry, K. Gnanadesikan, Principal Secretary (Finance), said on Friday.
Referring to the estimated fiscal deficit of about Rs.16,000 crore for 2010-2011, Mr. Gnanadesikan, who became the head of State Finance Department in April 2005, told reporters that the figure accounted for 3.7 per cent of the Gross State Domestic Product (GSDP). The 13th Finance Commission prescribed target was three per cent from 2011-12.
Pointing out that the 2008-2009 and 2009-2010 were years of recession, he said revenue consequently went down. But, the Centre allowed States to have fiscal deficit up to 3.5 per cent in 2009-2010. For next year, it will be four per cent.
“When GOI [Government of India] allows you to have a higher fiscal deficit with a view to countering economic recession, we should do it. It is because of the economic stimulus that we were able to come out of this spell of economic recession,” he said.
Noting that the recovery phase began in November-December last year, he said for the coming financial year, the projected growth rates in collection of commercial taxes and stamp duty were 15 per cent and 20 per cent.
As for projects aimed at benefiting the hosiery industry in Tirupur, he explained that the State government had set apart Rs.120 crore as its share of the Rs.800-crore zero liquid discharge project being implemented by the industry and nearing completion.
The Centre had announced its assistance of Rs.200 crore.
Besides, a project, estimated to cost Rs.800 crore to Rs.1,000 crore, for marine discharge of treated liquid effluents would be taken up, using the financial assistance of Rs.200 crore granted by the Finance Commission.
He indicated that the allocation of Rs.1,800 crore for the Kalaignar Housing Scheme was expected to go up in the coming years. The unit cost might increase due to factors such as inflation.
The government had taken the 2001 Census figures as the basis for the scheme, under which 21 lakh mud-walled houses with thatched roofs would be converted into permanent structures over six years.
As part of the 2011 Census operations, house listing would begin by July. When completed, the updated data would serve as the basis.
