Finance Minister Palanivel Thiaga Rajan on Monday said the State’s Own Tax Revenue (SOTR), which accounts for 70% of total revenue, is expected to increase 19.30% to ₹1,81,182.22 crore in 2023-24 from the revised estimates for 2022-23.
In his budget speech, the Minister also said the State has reduced its annual revenue deficit of around ₹62,000 crore, which the DMK government had inherited on assuming office, to around ₹30,000 crore, in the revised estimates of 2022-23.
In order to arrest the declining trend of SOTR as a percentage of Gross State Domestic Product, the government has been undertaking several resource mobilisation measures including rationalisation of rates and improvement in collection efficiency, he said in his budget speech.
As a result, SOTR is estimated to increase to ₹1,51,870.61 crore in the Revised Estimates, as compared to ₹1,42,799.93 crore in the Budget Estimates 2022-23.
The State’s Own Non Tax Revenue is estimated at ₹15,309.40 crore in the Revised Estimates, similar to the projections in Budget Estimates 2022-23. In the coming year, it is estimated at ₹20,223.51 crore, which is an increase of 32.10 per cent over the Revised Estimates
The total Revenue Receipts are projected at ₹2,70,515.23 crore in 2023-24, which is an increase of 10.12 per cent over the Revised Estimates of ₹2,45,659.67 crore for 2022-23.
Revenue expenditure expected to decrease
The total revenue expenditure is estimated to reduce to ₹2,76,135.68 crore in the Revised Estimates as compared to ₹2,84,188.45 crore in the Budget Estimates 2022-23, on account of prudent fiscal management.
In 2023-24, the total Revenue Expenditure is expected to be ₹3,08,055.68 crore.
The Revenue Deficit is estimated to be ₹30,476.01 crore in the Revised Estimates for 2022-23, compared to ₹52,781.17 crore in the Budget Estimates. This is a reduction of around ₹31,850 crore over the past two years, which is an unprecedented feat, the Finance Minister said.
The Revenue Deficit in the Budget Estimates for 2023-24 is estimated at ₹37,540.45 crore
The Fiscal Deficit has been estimated at ₹74,524.64 crore in the Revised Estimates, which is 3.00 per cent of the Gross State Domestic Product. This is a reduction of around ₹15,589.07 crore as compared to the Budget Estimates 2022-23.
For the 2023-24, the Fiscal Deficit is estimated at ₹92,074.91 crore, which is 3.25 per cent of the GSDP.
On March 31, 2024, the State’s Total Outstanding Debt will be ₹7,26,028.83 crore and the Debt-GSDP ratio will be 25.63 per cent. This is well within the 29.1 per cent for 2023-24 limit set by the Fifteenth Finance Commission, Mr. Rajan said.