Tamil Nadu among States where expenditure on subsidies exceeds national average
The Hindu
Tamil Nadu's high subsidy expenditure, particularly on electricity, exceeds national average, with focus on reducing revenue gap.
Tamil Nadu, known as a State that gives emphasis to welfarism and subsidies, is one among those States whose expenditure on subsidies as a percentage of revenue receipts exceeds the national average of around 9%. Its figure is 12% for 2022-23, according to the findings of a study on finances of States.
Putting the national average at about 9%, the study arrived at the figure, after considering the expenditure of 26 States during the year in question. It was carried out by PRS Legislative Research based on the budget documents of the States and certain Union Territories as well as reports of the Comptroller and Auditor General.
Among other States with relatively high expenditure on subsidies are Punjab (24% of revenue receipts), Andhra Pradesh (15%), Rajasthan (13%), and Gujarat (13%). In certain States, a major share of subsidies is provided for supplying free or low-cost electricity. For instance, over 95% of the total subsidies in Punjab and Rajasthan were provided for the electricity sector. As for Tamil Nadu, the State government provided a tariff subsidy of ₹12,069.97 crore and grants of ₹12,315.36 crore to the now-defunct Tamil Nadu Generation and Distribution Corporation (TANGEDCO). The figures for 2023-24 are ₹14,976.42 crore and ₹17,127.18 crore, according to the policy note of the State Energy department for 2024-25.
The study also identified Tamil Nadu as one among 20 States unable to recover the cost of supply in 2022-23. In the case of Tamil Nadu, the gap between the average cost of supply (ACS) and the average revenue realised (ARR) was ₹0.89 per unit. The State can draw consolation from the fact that it had been able to bring down the gap from ₹1.3 per unit in 2019-20 and ₹1.5 per unit in 2020-21 to the present level. The reduction in the gap was possible thanks to a tariff shock administered by the Tamil Nadu Electricity Regulatory Commission (TNERC) to power users across the board by virtually endorsing a petition filed by the TANGEDCO for a general tariff revision effective September 2022. For domestic consumers, the quantum of hike ranged from 11% to 45%. The aggregate technical and commercial losses (AT&C) of the State came down from 14% in 2019-20 to 10% in 2022-23.
India and Russia strengthen Arctic and nuclear cooperation, committing to joint efforts on new sea routes and energy projects.
BJP leader K. Surendran accuses Kerala government of shielding expelled MLA Rahul Mamkoottathil amidst ongoing rape allegations and political tensions.
All IndiGo flights at Bengaluru airport are cancelled until 11.59 p.m. on December 5; passengers advised to check status.
CWMA Chairman states Mekedatu dam's feasibility is unestablished, returning the project file to the Central Water Commission.
The tragic death of a Vizag woman uncovers a major organ-trafficking network in Andhra Pradesh, exposing exploitation of vulnerable communities.
Minister Vangalapudi Anitha pledges government support for physically challenged children, ensuring equal educational opportunities and necessary facilities.
Congress criticizes Modi government over IndiGo flight cancellations, linking chaos to a monopoly model harming competition in aviation.
NMDC partners with IIT Kanpur to enhance cyber security and digital technologies through a strategic MoU for industry-academia collaboration.
Sangareddy medical college faces inquiry into ragging incident, prompting a legal awareness program on anti-ragging laws for students.
Join 20,000 attendees in Hubballi on December 13 to honor Basavaraj Horatti's 45 years of service as MLC.
NITK hosts a five-day workshop for JNV teachers, focusing on innovative pedagogy and capacity building in education.
EVM commissioning for local body elections begins in Kozhikode, covering multiple blocks and municipalities, set to complete by December 7.
Wildlife researchers capture rare photograph of Sonnerat's shrew, believed extinct for over 200 years, in the Nilgiris.