Tamil Nadu

Tamil Nadu’s fiscal deficit at ₹92,305 crore in 2020-21

Tamil Nadu’s fiscal deficit -- the difference between total revenue and expenditure -- stood at ₹92,305 crore for fiscal 2020-21, according to un-audited provisional figures from the Comptroller and Auditor General (CAG).

Last fiscal, the State was hit by lower revenue collections due to the impact from the first wave of COVID-19 on the one hand, and increasing expenditure to tackle the pandemic on the other.

(₹ in crore)

2020-21

2019-20

% change

State’s Own Tax Revenue

1,01,140.09

1,01,211.94

-0.07

Total Revenue Receipts

1,69,012.27

1,73,898.03

-2.80

Total Receipts

1,74,255.66

1,79,282.03

-2.80

Revenue expenditure

2,30,332.73

2,03,236.86

13.3

Total expenditure

2,66,560.73

2,32,320.64

14.7

Revenue deficit*

-  61,320.46

-29,338.83

 

Fiscal deficit*

-92,305.07

-53,038.61

 

*Revenue deficit=Total Revenue Receipts- Revenue Expenditure. Fiscal deficit=Total receipts- Total expenditure

Source: Comptroller and Auditor General

As per the provisional figures, the State’s total receipts (including State’s Own Tax Revenue, share of Central Taxes among others and excluding borrowings) stood at ₹1,74,255.66 crore, while the total expenditure stood at ₹2,66,560.73 crore, resulting in a fiscal deficit.

The total receipts for 2020-21 declined 2.8% from ₹1,79,282.03 crore in 2019-20. The total expenditure increased 14.7% in 2020-21 from the year-ago figure of ₹2,32,320.64 crore.

The State’s Own Tax Revenue (SOTR), which accounts for 70% of Tamil Nadu’s total revenue, was flat at ₹1,01,140.09 crore in 2020-21 when compared to last year.

Among the components of SOTR, liquor revenue which gets partly reflected through State Excise Duties and Stamps and Registration Fees showed a positive growth in 2020-21, while State GST, VAT collections and land revenue showed a negative growth.

The State Excise Duties grew 8.5% to ₹7,821.66 crore in 2020-21, from ₹7,205.97 crore in 2019-2020.

Taxes on sales, trade etc (which reflects tax on petroleum products and sales tax on liquor) declined 2.3% to ₹43,490.05 crore in 2020-21 from ₹44,517.53 crore in 2019-20. The State’s GST collection also declined 1.12% to ₹37,942.08 crore in 2020-21 from ₹38,374.49 crore in 2019-20.

However, revenue from Stamps and Registration Fees increased 7.54% to ₹11,675.11 crore in 2020-21 from ₹10,855.65 crore in 2019-20.

The State’s share of Central taxes declined 5.56% to ₹24,924.51 crore from ₹26,392.41 crore in the same period last year.

Tamil Nadu’s revenue expenditure increased 13.3% to ₹2,30,332.73 crore in 2020-21, when compared to ₹2,03,236.86 crore in 2019-20.

The State’s revenue deficit stood at ₹61,320.46 crore in 2020-21. Revenue deficit is the difference between government’s revenue receipts and revenue expenditure and reflects that the government’s earnings are not adequate to meet its day-to-day operational expenses.

The interim budget presented by the then AIADMK government, before the Assembly polls, had pegged revenue deficit of ₹65,994.06 crore and fiscal deficit of ₹96,889.97 crore for 2020-21. The actual figures would be known when the new DMK government presents the full budget.

With the intense lockdown announcement to curb the second wave of COVID, the stress on the Tamil Nadu’s finances is likely to continue this fiscal as well.


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Printable version | Jul 29, 2021 2:34:35 AM | https://www.thehindu.com/news/national/tamil-nadu/tamil-nadus-fiscal-deficit-at-92305-crore-in-2020-21/article34656270.ece

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