Tamil Nadu Budget aims to cut revenue deficit by Rs 7,000 crore

The DMK government in Tamil Nadu on Friday presented the Budget for 2022-23 in the Assembly and Finance Minister Palanivel Thiaga Rajan said for the first time since 2014, the revenue deficit is set to decrease by over Rs 7,000 crore.

Tthe main opposition AIADMK staged a walkout and boycotted the Budget presentation, the second by the DMK government after it assumed power in May 2021.

Citing the pandemic, the floods, and the government action to tackle the situation, Thiaga Rajan said such aspects had a negative impact on the stressed state’s fin­ances.

In view of the prudent fiscal management, the overall revenue deficit has decreased to Rs 55,272.79 crore in revised estimates against the budg­eted Rs 58,692.68 crore. The 15th Central Finance Commission recommended a fiscal deficit up to 4.5 per cent of GSDP to states in 2021-22. “However, the fiscal deficit as a percentage of GSDP has reduced to 3.80 per cent in the revised estimates from 4.33 per cent in the Budget estimates.”

The minister said Rs 2,531 crore for waiver of agricultural loans, Rs 1,000 crore for waiver of jewel loans and Rs 600 crore for waiving self-help group loans has been allotted. All girl students who studied from Classes 6 to 12 in government schools will be paid Rs 1,000 per month directly into their bank account till the uninterrupted completion of their undergraduate degree, diploma and ITI courses. The students will be eligible for this in addition to other scholarships.”

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor