CHENNAI: Sluggish economy for over three years continues to be a challenge and the government would make all efforts to address the situation, Tamil Nadu government said on Friday.
Stating that the government would successfully take on the challange, Finance Minister D Jayakumar said the State’s fiscal situation would be improved and all welfare schemes would be implemented well through sustained efforts.
After the upward revision of guideline value for land registration, though the stamp duty collection did not come down, the growth percentage lowered and it was due to a “general economic slugishness,” he told the Assembly winding up the debate on the Budget for 2017-18. Although, a dip in stamp duty revenue during 2016-17 was due to a case in the High Court, a solution will be found, he said. He said tax buoyancy is expected to be at 0.81 during 2016-17 which had plummeted to 0.21 during 2015-16 and it was due to factors like economic slowdown and loss in tax revenue from petro products. He said tax revenue will increase commensurate with a rise in economic growth. “Debt and fiscal deficit will be continued to be retained within the (permissible) threshold,” he said. He said since 2011-12, though fiscal deficit was within three percent, during the current year (2016-17), the fiscal deficit has been estimated to be at 4.58 per cent and it was due to the government absorbing the Rs 22,815 crore debt of TANGEDCO with Tamil Nadu signing up for UDAY scheme. “In 2017-18, the fiscal deficit will be reined in at 2.79 per cent of the SGDP.” He said the State’s debt will be 2.72 lakh crore as on March 31, 2017 which includes the absorption of TANGEDCO’s outstandings. Citing Opposition members’ remark that the statistics pertaining to budget estimates was not provided in government website, he said the government has “no hesitation,” in releasing such data. He said the government website was being upgraded and a new portal will be inaugurated which will have new data and all related information. Referring to DMK member M R K Panneerselvam hitting out at distribution of free milch cows and goats, Jayakumar retorted these were distributed to the poor and added that cattle was the lifeline of rural economy. Bills including one to amend the Tamil Nadu Value Added Tax Act, 2006 which levies an additional tax on taxable turnover of liqour sale were adopted and as a result the prices of liqour sold by State-run TASMAC could go up by five percent. Members of ruling AIADMK and main opposition DMK continued to cross swords on several issues including Cauvery. Later, the House was adjourned sine die by Speaker P Dhanapal.—PTI
