T.N. non-tax revenue growth projection highest in four years

Its own non-tax revenue has been put at ₹20,223.51 crore in the budget estimates for 2023-24, up 32.10% from revised estimates for 2022-23

Tamil Nadu has projected a growth of 32% in its non-tax revenue for 2023-24, the highest in four years. The State’s revenue receipts consists of tax revenue (own tax revenue plus the share in Union Taxes/Duties); non-tax revenue; and grants from the Government of India, according to a recent report of the Comptroller and Auditor-General of India (CAG). Non-tax revenue consists of interest receipts; dividend and profits; mining and other departmental receipts, it said.

The State’s own non-tax revenue has been estimated at ₹20,223.51 crore in the budget estimates for 2023-24. This is an increase of 32.10% from the revised estimates for 2022-23, Finance Minister Palanivel Thiaga Rajan said in his 2023-24 budget speech.

The estimate of non-tax revenue has been revised to ₹15,309 crore in 2022-23, from the initial estimate of ₹15,537 crore.

In 2022-23, based on the revised estimate, the State will see an increase of 26.3% in its non-tax revenue from ₹12,117 crore in 2021-22. In 2021-22, the growth in non-tax revenue was 16.26% from ₹10,422 crore in 2020-21. As a proportion of the State’s own resources, the non-tax revenue, which stood at 8.94% in 2020-21, marginally increased to 8.98% in 2021-22, the CAG said.

Earlier, the State had seen over 30% growth in its non-tax revenue in 2018-19.

In 2018-19, the non-tax revenue increased to ₹14,200 crore from ₹10,764 crore in 2017-18, according to the data shared in the CAG’s State Finances Audit Report for the year ending March 2022.

In 2020-21 and 2019-20, the non-tax revenue showed a negative growth, compared with the previous year. It declined to ₹10,422 crore in 2020-21 from ₹12,888 crore in 2019-20.

In a report, India Ratings and Research said the budgeted growth in Tamil Nadu’s non-tax revenue is on the higher side and may come in lower at around 11%. India Ratings has assumed a nominal Gross State Domestic Product growth rate of 11% for 2023-24, as against the budget projection of 14%.

According to the data in the CAG report, the State had posted a lower non-tax revenue than the budget estimates in 2017-18, 2019-20, 2020-21 and 2021-22.