Tamil Nadu’s total revenue increased by 17.54% in financial year 2022-23, data released by the Comptroller and Auditor General of India (CAG) showed on Thursday. Incidentally, the data was released on the day minister Palanivel Thiagarajan, popular as PTR, was shifted from the Finance portfolio to the Information Technology ministry.
The total revenue for the year 2022-23 was Rs 2.42 lakh crore against Rs 2.08 lakh crore in the financial year 2021-22. Out of the total revenue, tax revenue increased by 17.85% with State GST increasing by 18.88%, and revenue from sale of liquor and fuel by 21.52%.
Overall, revenue crossed the 2022 budget targets by 108.59%. On the Expenditure side, the revenue expenditure has declined, due to which revenue deficit as well as the fiscal deficit are lower than the budget target.
“The last financial year was the first year without any Covid-19 lockdown, and therefore the state economy’s working was not affected. Due to this, the government’s revenue growth has been good,” said a senior official attached to the Finance department.
The official said the government’s outgo in the form of revenue expenditure was also controlled as there was no special Covid-19 support to the poor people. “In 2021-22, the state government’s revenue was hit by lockdown, and Rs 4,000 was given to people with ration cards. Thus, the expenditure was high. But in the last financial year, it was not the case. Therefore, the revenue deficit has come down to Rs 27,549 crore against the budget expectation of Rs 56,479 crore,” said the official.
Similar to the revenue deficit, the fiscal deficit also declined when compared to the expectation. “Overall, the fiscal deficit declined to Rs 72,418.99 crore against the budget expectation of Rs 1,00,341 crore. Due to the lowering of the fiscal deficit, our borrowings also declined and the interest expenditure declined to Rs 41,695 crore which is 90% of the budget target,” said the official.
On the negative side, the government’s spending on the capital expenditure has not crossed the budget target. According to experts, spending on capital expenditure will increase the jobs available in the state.
“If the state is holding back on capital expenditure despite higher revenues, the government is probably thinking about bringing down the fiscal deficit and debt levels before turning to capital spending,” said an economist.
He said at least in the present financial year, the government must loosen its purse strings and spend on capital expenditure as it will lead to higher economic growth.