NewsClick

NewsClick
  • हिन्दी
  • Politics
  • Economy
  • Covid-19
  • Science
  • Culture
  • India
  • International
  • Sports
  • Articles
  • Videos
search
menu

INTERACTIVE ELECTION MAPS

image/svg+xml
  • All Articles
  • Newsclick Articles
  • All Videos
  • Newsclick Videos
  • हिन्दी
  • Politics
  • Economy
  • Science
  • Culture
  • India
  • Sports
  • International
  • Africa
  • Latin America
  • Palestine
  • Nepal
  • Pakistan
  • Sri Lanka
  • US
  • West Asia
About us
Subscribe
Follow us Facebook - Newsclick Twitter - Newsclick RSS - Newsclick
close menu
×
For latest updates on nCOVID-19 around the world visit our INTERACTIVE COVID MAP
Politics
India

TN Budget: With No Innovative Measures to Increase Revenue, Debt Grows

Opposition decries Centre’s delay in releasing funds for states, especially GST revenues.
Neelambaran A
24 Feb 2021
tn budget 2021.

Image Courtesy: The Indian Express

Chennai: The interim budget presented by the AIADMK government on February 23 was sans any innovative measures to increase non-tax revenues. Thanks to the policies pursued by the Bharatiya Janata Party-led Union government, the state is loaded with financial burden and its debt burden is expected to cross Rs 5 lakh 70,000 crore in 2021-22.

In spite of being choked with financial burden and rising debt, the state finance minister chose not to be critical of the Union government on Centre-state finances. The undue delay in sharing of Goods and Sales Tax (GST) revenues with the state was hardly touched upon by the minister.

In fact, the government has reduced allocation for several key departments -- for rural development from Rs 23,161 crore to Rs 22,218 crore, for agriculture from Rs 6,991 crore to Rs 6,453 crore and for the fisheries department from Rs 1,229 crore to Rs 580 crore.

Ahead of the Assembly elections due to be announced soon, the All India Anna Dravida Munnetra Kazhagam (AIADMK) government has also resisted from announcing any welfare measures. There was no mention of the impact of the COVID-19-induced lockdown on the lives of workers from the unorganised sector and relief measures.

SHORTFALL IN REVENUES

The revenue of the state has taken a hit owing to the earlier economic slowdown and pandemic-induced lockdown.

Speaking on the financial squeeze being faced by states, economist Prof Venkatesh Athreya, economist, told  NewsClick: “The finance minister refrained from making comments on the Centre-state financial situation. There was no reference made to the comments made by the 15th Finance Commission also”.

The revenue from the cess and surcharge of the Union government has almost doubled in the last decade, which is being appropriated by the Centre.

 “The cess and surcharges are not shareable with the states and the unilateral decisions of the Centre are undermining the revenues of the state governments. The revenue from cess and surcharges has increased from around 10% in 2010-11 to more than 20% in the current financial year”, said Athreya.

The increasing debt of the state drew strong criticism from the Opposition. Dravida Munnetra Kazhagam (DMK) leader M K Stalin said:  “The financial management of the state government is so pathetic, even a new-born child has a debt of Rs 62,000 crore”. 

The DMK also released a detailed report based on the information from the Comptroller and Auditor General and the report of the 15th Finance Commission on the revenue shortfall and accused the Edappadi K Palaniswami regime for the rising debt. The party also accused the AIADMK government of making “false claims” on development.

DMK also claimed that the state had a cumulative revenue surplus of Rs 2,386 crore when the party demitted office in 2011, while the current deficit is pegged at Rs 1.31,000 crore.

DELAY IN RELEASE OF FUNDS

The Opposition also accused the Central government of violating the solemn guarantee given to states during the implementation of GST. But, the AIADMK government, an ally of BJP, has not been making any strong point against the continuing neglect of states, the Opposition added.

The GST dues for the state stand at Rs 12,263 crore, as per secretary of finance, government of Tamil Nadu. The state government has been repeatedly demanding release of these funds, but the delay has continued for reasons unknown.

The Centre has also not released Rs 4,845 crore for rural local bodies, as per the recommendation of the 15th Finance Commission. 

The Communist Party of India (Marxist), in a statement, also slammed the delay in release of Central funds.

‘The local bodies are gasping for funds, while the union government has refused to release the fund which is highly condemnable’,  the CPI(M) statement read. 

NO INNOVATIVE SCHEMES ON NON-TAX REVENUES

The state government has been longing for funds as tax revenues have fallen short in the recent years. The government is depending largely on borrowing for meeting the expenditure, instead of moving toward innovative schemes for generating non-tax revenues. The sale of liquor remains a major source of income to the state exchequer. 

“The government can utilise the mineral resources to generate revenue. But, such minerals are thrown away at a very low price and there is rampant corruption in the department leading to loss for the exchequer”, said Athreya. 

He said “the state government can follow the Kerala Infrastructure Investment Fund Board (KIIFB) to carry out development projects. No such proactive measures are happening to increase the revenue”.

Also, big announcements being made by the government are not reflecting either in the budget or on the ground.

“The allocation of Rs 5,000 crore for cooperative banks for farm loan waiver is insufficient compared with the waived amount of Rs 12,110 crore”, said Athreya. Also, the survival of the cooperative bank could be at stake if the allocation is further delayed.

Get the latest reports & analysis with people's perspective on Protests, movements & deep analytical videos, discussions of the current affairs in your Telegram app. Subscribe to NewsClick's Telegram channel & get Real-Time updates on stories, as they get published on our website.
Tamil Nadu Budget
AIADMK Government
Revenue Deficit
KIIFB
Non Tax Revenue
DMK
CPI(M)
GST Share for States
Cess and Surcharge on Petroleum Products.
Related Stories
TN Polling

TN Elections: Reduced Voter Turnout, Alleged Cash for Votes Continued

assembly election 2021

Assembly Elections 2021: Voting Ends for 475 Seats, with Non-BJP Parties at Helm in 3 States

assembly election 2021

Assembly Polls 2021: All Seats in TN, Kerala, Puducherry, and Some in Bengal, Assam Vote Today

Left tn

TN Elections: Left Parties Rely on Committed Cadre Base

TN Continues to Maintain Different Political Attitude than Rest of Country

TN Continues to Maintain Different Political Attitude than Rest of Country

Assam Bhasha

Ground Report | Guwahati: Voters Fear Stolen Votes

TN Elections: Bhasha Singh Ground Report April 4

TN Elections: ‘Modi Card’ a Flop, Signals DMK’s Return?

TN election

TN Elections: Violence Marks Yogi’s Arrival in Coimbatore, Central Agencies Raid DMK Leaders and Candidates

Why TN Silver Anklet Workers Fear Elections

Why TN Silver Anklet Workers Fear Elections

TN Fishermen Voice Against State and Central Govts

TN Fishermen's Voice Against State, Central Govts

Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share
Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share

Related Stories

Sruti M.D.

TN this Week: Daily COVID-19 Count Breaches 8,000, Stricter Restrictions Anticipated

17 April 2021
The state of Tamil Nadu
Sandip Chakraborty

BJP’s Divisive Identity Agenda May Lead North Bengal to a Dangerous Bend

16 April 2021
Siliguri/Kolkata:
Neelambaran A

Puducherry Elections: Desperate BJP Allegedly Bribes Voters, Makes Huge Promises

08 April 2021
Voters from the Union Territory of Puducherry came out in large numbers for the single-phase polls to 30 seats in the assembly, held on April 6.

Pagination

  • Next page ››

More

  • UP State Employees Want Postponement of Remaining 2 Phases of Panchayat Elections

    UP State Employees Want Postponement of Remaining 2 Phases of Panchayat Elections

  • Oxygen

    Economic Interests Can’t Override Human Lives, Cut Down Industrial use of Oxygen Now: HC

  • Administrative Failure at Mizoram’s Dampa Tiger Reserve

    Administrative Failure at Mizoram’s Dampa Tiger Reserve

  • Jawahira Bano at her home in Frisal village of Kulgam.

    Ailing Couple Struggles to Survive in Kashmir as Daughter Booked on ‘Terror Charges’

  • Load More
Subscribe
connect with
about