Raising hopes that the Tamilnadu economy is back on the path of growth after the pandemic-induced slumber, Finance Minister Palanivel Thiaga Rajan on Friday presented the State budget that is optimistic about the coming years, and focuses on growth rooted in the Dravidian principles of social justice-linked development.
Tamilnaduās Gross State Domestic Product (GSDP) is projected at 7.85% for 2021-22, while the nominal GSDP growth estimated to be 14% in the next two financial years.
A standout feature is the fall in both revenue and fiscal deficits despite the financial strains. The budget estimates have put revenue deficit for 2022-23 at Rs 52,781.17 crore, lesser than the Rs 55,272.79 crore deficit projected in the 2021-22 revised estimates, thus reversing an alarming trend of increasing deficits every year since 2014, he said. Similarly, fiscal deficit, which is estimated at 3.63% of GSDP, would go down to 3.17% in 2023-24 and 2.91% in 2024-25, Thiaga Rajan said.
The state government plans to borrow a net amount of Rs 90,116.52 cr during 2022-23 and the outstanding debt will be Rs 6,53,348.73 crore as on March 31, next year. The outstanding debt as a percent of GSDP is expected to be 26.34 pc in 2023-24 and 25.93 pc in 2024-25 which are well within the norms prescribed by 15th Finance Commission.
Empowering women through education and better livelihood opportunities and elimination of poverty through inclusive growth were also in focus.