Tamil Nadu’s Own Tax Revenue grew about 52.3% to ₹33,923.04 crore in April-June 2022 from ₹22,260.68 crore in the same period last year, according to the provisional figures from the Comptroller and Auditor-General (CAG).
The State’s Own Tax Revenue accounts for 70% of the total revenue, and all its components have shown growth.
State Excise Duties (which reflect liquor revenue) grew 116.3% to ₹2,594.55 crore in April-June 2022, compared with ₹1,199.23 crore in the same period last year. Revenue from Stamps and Registration Fees increased 92.6% to ₹4,457.95 crore in the first quarter of fiscal 2023 from ₹2,314.46 crore in the same period last year.
For April-June 2022, land revenue increased 53.5% to ₹58.46 crore from ₹38.07 crore in the same period last year. The State Goods and Services Tax (SGST) collection increased 48.4% to ₹13,692.84 crore in April-June 2022, compared with ₹9,224.11 crore in the same period.
Revenue collection from the component taxes on sales and trade etc., (including VAT on petrol and diesel and liquor) increased 38.3% to ₹13,119.24 crore in April-June 2022 from ₹9,484.81 crore in the comparable period last year.
The State’s total revenue receipts in the April-June 2022 period stood at ₹57,768.55 crore, nearly 25% of the budget estimates of ₹2,31,407.28 crore for 2022-23. Besides the SOTR, the total revenue receipts include the State’s share of Union Taxes, other taxes and duties and non-tax revenue. The share of the Union Taxes stood at ₹5,823.78 crore for the April-June 2022 period.
The higher revenue growth has also resulted in lesser borrowings by the State in the first quarter. According to data from the Reserve Bank of India, Tamil Nadu did a gross borrowing of ₹8,000 crore in April-June 2022. After repayments being adjusted, the net borrowings stood at ₹5,528 crore. The State had indicated it would borrow ₹23,500 crore in the first quarter of 2022-23. Due to the change in the norms for approval of borrowings, it started borrowing only in May.
The State’s fiscal deficit, the difference between total revenue and expenditure excluding borrowings, stood at ₹6,171.03 crore and the revenue deficit (the difference between the government’s revenue receipts and revenue expenditure) stood at ₹2,166.24 crore as of June 2022.
Recently, Tamil Nadu Finance Minister Palanivel Thiaga Rajan said the State was doing well and it would become revenue surplus in two years, and it would not crowd the debt market for borrowings.