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.
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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.
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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.
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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.
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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.