Chennai: The DMK government in Tamil Nadu on Monday released a white paper in the financial state to highlight the level of ‘fiscal management errors by the former AIDMK government.’ Blaming the previous AIDMK government for a steady setback from Tamil Nadu’s finances, the State Minister for Finance and Human Resources PT Palanivel Thiagarajan said the current level of fiscal deficit was not sustainable because the income deficit in the fiscal deficit exceeded 50% or more since 2017-18.
Even though in most years, since 2013-14, the fiscal deficit was maintained within a 3% limit of prescribed, it was only obeyed by delaying certain expenditure items, he said.
Deficit Deficit Deficit Income deficit increases mainly funded by borrowing, which sharply increases total debt (visible) circulating to a little more than RS 5.70 lakh crore on March 31, 2022 and amounting to RS 70,000 on every citizen.
The gap that develops between fiscal deficits and net public debt every year has been borne by transactions in public accounts and cash balance withdrawals.
The total government guarantee almost doubled more than RS 91,800 Crore only in 2020-21 only, which is a large contingent obligation and fiscal risk for the state.
In 2019-20, Tamil Nadu had the third highest guarantee circulating among all states in India behind Telangana and Andhra Pradesh.
“These problems can be fixed.
But the usual business approach cannot continue.
This is an opportunity to influence generation generation reforms,” said Thiagarajan after releasing white paper here.
He broadly signaled more taxes “Haves” to take care of social interests “do not have”.
But he threw his hand on how and when it could be done, even while highlighting the fact that motor vehicle tax remained unchanged for 15 years and questioned the uniform tax on property and water for the poor and rich, in addition to need to distinguish between rich and ordinary consumers for electricity.
“My budget will bring this Friday practically for six months.
Therefore someone cannot say how many changes can be embedded in this exercise.
But advanced, bitter drugs will be delivered properly for personal interests that exploit state revenues for their personal benefits, “He said.” But through wise steps, we are sure to improve seven-year errors by the AIDMK government and also fulfill all promises of polls within five years, “said Minister.
White paper about Tamil Nadu Finance: It’s time to encourage reform and give bitter medicine, said Thiagarajan Palanivel
