TAMIL NADU

‘GSDP grew by 11.68%’

The Gross State Domestic Product (GSDP) of the Union Territory during 2016-17 stood at Rs. 27,586 crore, a growth rate of ll.68% compared to the year before.

An examination of the report by the Comptroller and Auditor General revealed that GSDP growth was showing decline in 2014-15 and 2015-16. The growth rate dropped from 15.87% in 2013-14 to 3.22% in 2014-15. The growth improved further by 9.42% in the subsequent year. The growth rose to 11.68 % in 2016-17, the report said.

The report says the percentage of population below the poverty line was 7.7 which was lower than the all-India average of 21.9.

The revenue receipts of the Union Territory had increased by Rs. 295 crore in 2016-17 as a result of increase in tax revenue by Rs. 141 crore. The increase in non-tax revenue collection by Rs. 107 crore and release of additional grants to the tune of Rs. 47 crore by the Union Government also contributed to the increase in revenue receipts.

The outstanding fiscal liabilities increased from Rs. 5,880 crore in 2012-13 to Rs. 8,299 crore in 2016-17. The fiscal liabilities represented about 30% of the GSDP. The maturity profile of Union Territory’s public debt indicated that nearly 65.88% of the debt was repayable within the next seven years, which shows the government was heading towards debt trap, the report said.

Additional spending

During the year, the revenue expenditure increased by Rs. 173 crore because of additional spending on general and economic services. As against the target proposed in the fiscal road map for revenue deficit of Rs. 197. 32 crore, the Union Territory’s revenue deficit was Rs. 75.30 crore, which was 0.27% of GSDP. The outstanding fiscal liabilities to GSDP was 30.08% as against 27.60% envisaged in the fiscal road map.

The report says as on March 31, 2017, there were 12 public sector undertakings and non-working undertaking. The working PSUs registered a turnover of Rs. 366.63 crore and incurred a loss of Rs. 24.79 crore. The companies employee as many as 4,778 people.

The government investment in PSUs grew by 3.08 % from Rs. 711.15 crore in 2012-13 to Rs. 733 during 2016-17. The ration of return on capital employed and equity stood at -7.67% and -24.79% respectively. Of the 12 working PSUs, four of them earned a profit of Rs. 13.20 crore and seven incurred a loss of Rs. 37.99 crore, leading to overall loss. One company neither earned profit nor incurred loss, the report said.

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