Announcements on GST, borrowing will be keenly watched
The Hindu
At pre-Budget meet, T.N. sought extension of GST compensation period
As far as Tamil Nadu’s finances are concerned, the Union Budget 2022-23 to be presented by Finance Minister Nirmala Sitharaman on Tuesday would be keenly watched for announcements on the extension of the GST compensation period (which comes to an end in June this year) and relaxation in the borrowing limit.
At the pre-budget meeting, Tamil Nadu Finance Minister Palanivel Thiaga Rajan urged the Union government to extend the GST compensation period by at least two years, arguing that the States’ revenues were yet to recover. He had also urged the Centre to permit the States to borrow 5% of the GSDP without any condition, besides seeking payment of pending dues under various heads.
Tamil Nadu has seen a recovery in revenue collection, but expenditure has remained higher, putting stress on the State’s finances. The total revenue receipts stood at ₹1,18,992.48 crore so far in 2021-22 (till November 2021), up 22% from last year, while the total expenditure was ₹1,49,044.19 crore, resulting in a fiscal deficit of ₹30,051.71 crore. Revenue deficit (which implies revenue expenditure is higher than revenue receipts) stood at ₹7,869.87 crore.
