Tamil Nadu’s total revenue receipts up 28.3% so far in fiscal 2022-23

The Finance Minister Palanivel Thiaga Rajan has hinted that the State will become revenue surplus in 2-3 years time, which will help increase its capital spending

Representational image | Photo Credit: Getty Images/iStockphoto

Tamil Nadu’s total revenue receipts has increased about 28.3% to about ₹1,29,600.46 crore so far in fiscal 2022-23 (till October) from ₹1,01,047.40 crore in the same period last year, according to the provisional figures of the Comptroller and Auditor General of India (CAG).

Among the revenue receipts, the State’s Own Revenue (SOTR) grew 31.7% to about ₹81,261.97 crore till October this year, when compared to ₹61,692.66 crore in the same period last year. The SOTR accounts for about 70% of Tamil Nadu’s total revenue and comes from stamp duty and registration, value added tax on petrol and diesel and liquor, excise duty on liquor, Motor Vehicle Tax, States Goods and Services Tax.

In fiscal 2021-22, the SOTR was impacted by the COVID-19.

The total revenue was also helped by an increase in the Centre’s devolution of the State’s share of Union Taxes. The State’s share of Union Taxes increased about 41.2% to ₹17,720.73 crores till October in fiscal 2022-23 from ₹12,550.57 crores in the comparable period last year. Other taxes and duties increased to ₹4,370.97 crores from ₹3,039.31 crore. Non-tax revenue and Grants-in-aid are the other components of the revenue receipts.

As of October-end 2022, the State’s revenue deficit (the difference between the government’s revenue receipts and revenue expenditure) stood at ₹8,654.91 crore. As of October-end 2021, the revenue deficit was ₹10,126.14 crore.

The State’s fiscal deficit (the difference between total revenue and expenditure excluding borrowings) stood at ₹25,931.10 crore as of October end 2022, when compared to ₹28,108.69 crore at the end of October 2021. The improving deficit position has also resulted in lower borrowings.

Tamil Nadu’s net borrowings after adjusting for repayments stood at ₹26,153 crore till October in fiscal 2022-23, down 30.7% from ₹37,740 crore till October in 2021-22, as per data from Reserve Bank of India.

Tamil Nadu’s Finance Minister Palanivel Thiaga Rajan has said the State has put in place measures to safeguard against any recessionary trends. He has also hinted that the State will become revenue surplus in 2-3 years time, which will help increase its capital spending.