Tamil Nadu’s fiscal deficit for 2021-22 is poised to see a significant reduction from 4.61% down to 3.80% and the State will see a reduction in the absolute level of the revenue deficit by over ₹7,000 crore, “reversing an alarming trend of increasing deficits every year since 2014,” Finance Minister Palanivel Thiaga Rajan said in the Assembly on Friday. After this seven-year slump, the reduction in Revenue Deficit, even in such a challenging year is a testimony to this government’s prudent fiscal management, he said.
Presenting the Budget for 2022-23, he said the State’s Revenue Deficit has decreased to ₹55,272.79 crore in the revised estimates as against the Budgeted amount of ₹58,692.68 crore. The State aims to further bring down the fiscal deficit within 3.5% in 2022-23 and to 3% from 2023-24 onwards, adhering to the fiscal norms outlined by the 15 th Finance Commission.
The Net Public Debt for 2022-23 has been projected at ₹90,116.52, taking the total outstanding debt to ₹6,53, 348.73 crore on March 31, 2023, while the Debt-GSDP ratio will be 26.29%, within the limits set by the Finance Commission, he said.
