TN’s debt projected at Rs 5.7L crore in 2022
Healthcare, edu depts get lion’s share in interim budget presented by OPS
CHENNAI: Healthcare and Education Departments got the lion’s share in the State interim budget for 2021-22 presented on Tuesday while the estimated overall outstanding debt is expected to be Rs 5,70,189.29 crore as on March 31, 2022.
Presenting his 11th budget, Deputy Chief Minister O Panneerselvam said, “The overall outstanding debt as on March 31 this year is estimated to be Rs 4,85,502.54 crore and as on March 31, 2022, it is estimated to be Rs 5,70,189.29 crore. Overall revenue deficit for 202122 is estimated to be Rs 41,417.30 while capital expenditure is expected to increase by 14.41% to Rs 43,170.61 crore.”
Speaking about rising debt, Panneerselvam clarified that it was well within the norms set by 15th Finance Commisison. “The Commission has reset ebt- Gross State Development Product (GSDP) norms recognising that increased borrowings will be required in 2020-21 and 2021-22 to sustain expenditure. While the debt to GSDP ratio can be up to 28.9% in 2020-21 and 28.7% in 2021-22, the ratio of Tamil Nadu as on March 31 this year will be 24.98% and as on March 31 next year will be 26.69% which is well within the norms prescribed by the Finance Commisison,” he said. On the Rs 12,110.74 crore farm loan waiver announced by Chief Minister Edappadi K Palaniswami, the State has allocated Rs 5,000 crore this year. On this, Finance Secretary S Krishnan said that capital on crop loan waiver will be given to cooperative societies over a period of five years and in the first year Rs 5,000 crore has been allotted.
While referring to Industries Department, Panneerselvam said TIDCO is developing a Fin Tech city at Kavanoor at an area of 260 acres, to attract domestic and overseas financial institutions and fin tech companies. A new Fin Tech policy is being finalised which will enable Chennai to develop as a global hub for fin tech enterprises. Later, Speaker P Dhanapal made an announcement in the Assembly that there would be no session on Wednesday and resume on Thursday. Condolence resolutions will be passed on Thursday and debate on budget will be on Thursday and Friday.
There was a sharp drop in revenue over pandemic, but expenditure levels had to be enhanced to protect people’s welfare
— Panneerselvam, Deputy CM It is the only State government in the history of Tamil Nadu to borrow loans to pay the interest of the earlier loans
— MK Stalin, DMK president After the borrowings, the economy of a State should continue to grow..only then will it be able to pay back — S Krishnan,
Finance Secretary
DMK president MK Stalin on Tuesday condemned Chief Minister Edappadi K Palaniswami and his Deputy O Panneerselvam for imposing a debt of Rs 5.7 lakh crore on the state people.
Stalin said, “All the irregularities of the AIADMK regime in financial mismanagement, which turned repayment of loan interest the second major expenditure of the state, would be probed and financial position of the state would be streamlined after the DMK returns to power with the overwhelming support of the people.”
The state has not seen such a financial mismanagement by a Chief Minister and Finance Minister who have imposed a per capita debt of Rs 62,000 on the state people, including new born children. Remarking that the AIADMK has created a blot in the history of financial management of the state, Stalin, whose party decided to boycott the interim Budget session, said the entire debt of the state government in the 2006-11 DMK regime was only Rs 44,000 crore, but the AIADMK regime has borrowed Rs 3.55 lakh crore.
Claiming that the debt could be high when the final estimates are out, the DMK president said the revenue receipts of the state fell from 10.5 per cent in the DMK regime to 7.2, resulting in a revenue shortfall of Rs 93,737 crore.
Wondering if this is victorious Tamil Nadu, the DMK chief said the Chief Minister who refused to offer direct cash relief to the livelihood affected people during the lockdown was splashing Rs 1,000 crore of the tax-payers’ money in advertisement campaigns.
Accusing the CM and his Ministers of emptying the exchequer by floating tenders for over Rs 40,000 crore in the last three months before elections, Stalin cited the 15th Finance Commission, which attributed the fall in the industrial growth of the state from 10.9 per cent to 4.6 per cent to the financial mismanagement.
Wondering what has become of the Rs 87,000 crore generated through petrol and diesel tax, GST arrears and funds for local administration ministry from the Centre and funds from NABARD and international funding institutions, Stalin said the AIADMK regime has taken the state’s growth backward by 50 years.
Boycotts Budget speech too
DMK, on Tuesday boycotted the presentation of interim Budget for 2021-22 in the Assembly and walked out of the House. Soon after OPS rose to deliver his Budget speech, Deputy Leader of the Opposition Duraimurugan sought to raise some issues. However, Speaker P Dhanapal refused permission and suggested that Duraimurugan could say whatever he wanted to, but would nothing go on records. Following this, all the DMK members stood up and sought the Speaker’s permission to allow Duraimurugan to convey the party’s opinion. As Panneerselvam began reading the Budget, DMK members walked out.