Centre owes Rs 12,263 cr to TN, says Finance Secretary

To a query whether the delay in holding the TN civic polls was affecting the release of central funds, the secretary said that the Centre has started clearing the dues. Due to the financial crisis, the Centre had also kept arears for other Indian states and its local bodies, he noted.

“The TN’s economy grew at 8.17 per cent in 2018-19. In 2019-20, the growth is projected to be 7.27 per cent, which is significantly higher than the projected all India growth rate of 5 per cent. We expect an even stronger growth performance in 2020-21 of about 10 per cent,” Krishnan said.

The state has pegged its own tax revenue to grow by 10.52 per cent to reach Rs 1.33 lakh crore in the revised budget estimates for 2020-21 and this is a realistic target, which TN has achieved in the past. There were times when tax revenue grew by more than 12 per cent and we are confident of achieving this target. Further if the local bodies create their own revenue resources, the state will again benefit and there are fresh investments coming into Tamil Nadu through industries. Tamil Nadu is a diversified state with 15 key sectors, Krishnan said.

According to the budget, the State’s Own Tax Revenue is estimated to be Rs 1,20,809.3 crore for 2019-20. The State’s Own Tax Revenue is estimated to increase to Rs 1,33,530.30 crore in budget estimates for 2020-21, Krishnan said. For 2021-22, he said the own tax revenue was estimated at Rs 1,52,270.66 crore and for 2022-23, Rs 1,73,664.49 crore, the official added.

To a query on revenue from the Tamil Nadu State Marketing Corporation (TASMAC) and the plans to open new shops, the secretary said that the revenue was expected to be around Rs 30,000 crore for 2019-20. The increase in number of shops and revision in liquor prices will help the state to earn an additional revenue of Rs 2000 crore.

On funds allocated under the State Disaster Management Fund, he said the Centre has increased its share to Rs 1,360 crore from the previous sanction of Rs 825 crore. “This again we have state as insufficient and we are hoping for immediate and long-term funds through the commission,” he said.