CHENNAI: Tamil Nadu was yet to receive its share of integrated GST to the tune of Rs 5,454 crore from the Centre despite being among the best performing states in implementation of the new tax regime, Deputy Chief Minister O Panneerselvam Friday said.
Presenting the budget for 2019-20 in the assembly, he said the delay in release the dues was impinging on the state’s finances.
He said Tamil Nadu was one of the best performing states in implementing the GST and has achieved good growth in GST revenues.
“However, the state is yet to receive its due share of IGST to the tune of Rs 5,454 crore as well as the assured GST compensation of Rs 455.16 crore for 2017-18,” he said.
The introduction of the Goods Service and Tax has taken away the limited taxation powers of the state governments thereby curtailing their tax mobilisation capacity, Panneerselvam said.
“The consistent downgrading of tax rates, lack of full operability in the filing of tax returns on GST network and the undue delay in devolving the due share of states in IGST collection and the assured GST compensation, are reducing the tax resources of the states, particularly Tamil Nadu”, he said.
He said the revenue deficit for 2019-20 was expected to be Rs 14,314.76 crore while the total revenue receipts have been projected to be Rs 1,97,721.17 crore.
The increased pressure on revenue deficit was due to the multiple factors including debt of TANGEDCO (Tamil Nadu Generation and Distribution Corporation) by the government to an extent of Rs 22,815 crore, implementation of 7th Pay Commission recommendations among others.
The fiscal deficit as per the budget estimates of 2019-20 was expected to be at Rs 44,176.36 crore.
On collection of state’s own tax revenue, Panneerselvam said, it was projected under the revised estimate for 2018-19 at Rs 1,10,178.43 crore and expected to increase to Rs 1,24,813.06 crore in the budget estimates for 2019-20.
Some of the major components of the State’s Own Tax Revenue include the growth in GST as well as non-GST like sales tax from petroleum products and sale of liquor.
“The receipts from the commercial taxes are estimated to be Rs 96,177.14 crore in budget estimates of 2019-20”, he said.
On the net borrowings during 2018-19, Panneerselvam said, Tamil Nadu adopted a conservative approach and raised only Rs 44,066.82 crore as against the permitted limit of Rs 47,350 crore to restrict the outstanding debt.
For 2019-20, it was estimated that Rs 43,000 crore would be raised as against the permissible borrowing of Rs 51,800 crore, he said.
“The net outstanding debt by March 31, 2020 will be Rs 3,97,495.96 crore and the debt to GSDP ratio will be 23.02 per cent well within the debt-GSDP norm of 25 per cent”, he said.
On the capital expenditure allocated to create infrastructure, he said, “Rs 31,251.21 crore has been provided in the budget estimate for 2019-20 as against Rs 26,191.98 crore in the revised estimates of 2018-19”.
Source- Business Standard.