Chennai: Tamil Nadu is expected to end up with a total debt of Rs 653,348.73 crore by March 31, 2022, Finance Minister Palanivel Thiaga Rajan said on Friday March 18.
He also said the state’s net borrowing during FY23 will be Rs 90,116.52 crore excluding an amount of Rs 6,500 crore anticipated from the Centre towards back to back loan for goods and services tax (GST) compensation shortfall.
Presenting the state budget for 2022-23 in the Assembly, Rajan said: “The outstanding debt as on March 31, 2023 will be Rs 653,348.73 crore after excluding back to back loan for GST Compensation shortfall released by Government of India.”
According to him, the projected debt level constitutes 26.29 per cent of gross state domestic product (GSDP) in 2022-23.
The outstanding debt, as a percentage of GSDP, is expected to be 26.24 per cent in 2023-24 and 25.93 per cent in 2024-25, which are well within the norms prescribed by 15th Finance Commission.
Thus, the state aims to maintain debt sustainability as part of its fiscal consolidation roadmap, he said.
The total revenue receipts of Tamil Nadu, including the central transfers, are estimated to be Rs 231,407.28 crore in budget estimates 2022-23.
The state’s own tax revenue (SOTR) is estimated to be Rs 142,799.93 crore for 2022-23.
According to Rajan, the state is expected to face a potential revenue shortfall of about Rs 20,000 crore with the goods and services tax (GST) compensation regime coming to an end on May 30, 2022.
“We expect that the Union Government will settle the arrears pertaining to GST in time. The budget estimates 2022-23 is estimated at Rs 50,397.82 crore. The receipt from taxes, especially from petroleum products, is expected to witness a significant growth in the next two years,” Rajan said.
The state’s own non-tax Revenue has been estimated at Rs 15,537.24 crore for next fiscal while the share of central taxes is estimated at Rs 33,311.14 crore.
The grants-in-aid from the Centre have been estimated at Rs 39,758.97 crore for FY23.
According to Rajan, for the next fiscal the revenue expenditure is estimated at Rs 284,188.45 crore and the capital expenditure at Rs 43,043.38 crore.
The revenue deficit for 2022-23 is estimated at Rs 52,781.17 crore, which is lesser than the revenue deficit of Rs 55,272.79 crore projected in revised estimates 2021-22.
The revenue deficit is expected to reduce to Rs 26,313.15 crore in 2023-24 and subsequently to Rs 13,582.94 crore. This creates additional space for capital spending, Rajan said.