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Chennai , Nov. 7

THE Tamil Nadu Government's revenues remain buoyant with the Commercial Taxes Department striking a mother lode in the slew of new taxes and tax hikes announced over the last two years.

According to the review of trends in receipts and expenditure in relation to the 2003-04 Budget tabled in the Assembly on Friday, the State's tax revenues are at Rs 7581.09 crore as of September 30 against the total estimated revenue receipts of Rs 10,143.56 crore for 2003-04.

The Government is putting together a medium term fiscal reform programme to be presented along with the Budget estimates for 2004-05. This will outline the plan for fiscal correction envisaged under the Fiscal Responsibility Act tabled during the Budget session.

The review of the receipts and trends tabled on Friday is one of the measures spelt out in the Act. This is to be a half yearly exercise with the Government making a statement on trends and the measures taken towards fiscal discipline. It may be recalled that the State Government, over the last three years, has taken steps to rein in expenditure and increase revenues.

Among the revenue earners, the entry tax, that came into effect in December 2001, and the measures in the Budget for 2002-03, including the widening of the tax base, 5 per cent infrastructure surcharge and measures to step up tax arrears collections through conciliation schemes were major contributors.

In the current year, the major contributors were predicted to be rationalisation of electricity taxes, increase in motor vehicle tax and tax on fuels, and the tax on telephone rental, which alone was expected to rake in 50 per cent of the envisaged Rs 430 crore additional revenue during the current year have been significant earners.

Entry tax demonstrated a sustained monthly increase of about 14 per cent through last year since it was introduced. It has continued to make a significant contribution during the current year and helped maintain the buoyancy in States revenue, according to sources.

On Wednesday, the Commercial Taxes Minister, Mr S.M. Velusamy, had informed the House that the revenue from commercial taxes had touched an all-time high of Rs 1005.8 crore in October.

Arrears collection was also on the upswing with Rs 10.34 crore collected between July and October under the Samadhan scheme.

The review shows that sales and entry tax account for Rs 5527.04 crore of the total revenue of Rs 7581.09 crore up to September. The revenue from sales and entry tax has shown a 20 per cent growth over the corresponding period last year when it was Rs 4403.59 crore, according to available statistics.

The other sources of revenue were State excise Rs 800 crore, taxes on motor vehicles Rs 468.40 crore, stamps and registration Rs 676.24 crore, taxes and duties on commodities and services Rs 72.19 crore and taxes and duties on electricity 23.13 crore.

Apart from the tax revenues the State has received as of September 30 (pre-actuals), Rs 1221.25 crore as share in central taxes, which is 35.55 per cent of the Budget estimate of Rs 3,435 crore for the year, State's non-tax revenue Rs 779.84 crore, about 51 per cent of Budget estimate of Rs 1506.14 crore and as grants in aid from the Centre Rs 561.38 crore, 29 per cent of the Budget estimate of Rs 1891.81 crore.

Of the total estimated expenditure of Rs 7000.13 crore for 2003-04, the Government has spent Rs 2561.95 crore up to September 30.

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