The Hindu Business Line : Over 19% increase in TN revenue collection

Advertisement

Chennai Feb. 5 Tamil Nadu's revenue collection has registered over 19 per cent growth and its fiscal management is on track, according to the Chief Secretary, Mr L.K. Tripathy.

Addressing the second State-level press conference to highlight the Government's performance, he said that revenue trends during the first months of Value Added Tax also show a little over 19 per cent growth.

Responding to a question on concerns on fiscal management and high expenditure due to subsidies, he said that the revenue collections were buoyant. The fiscal management was in line with targets set out in the medium term fiscal responsibility Act. The fiscal deficit as a percentage of Gross State Domestic Product was below 3 per cent.

Industrial investments were happening and agriculture output was good.

According to official figures, total revenue collection up to January 31, 2007, was Rs 16,171.42 crore, a 19.27 per cent growth over the same period in 2006 when it was Rs 13,558.41 crore.

Collection of arrears was Rs 261.96 crore (Rs 174.86 crore), a nearly 50 per cent increase.

Revenue collection under VAT was buoyant but the State Government will have to provide for nearly Rs 450 crore claimed by the trade as set-off on closing stock as on December 31, 2006. The Centre will compensate 75 per cent, Mr Tripathy said.

The revenue to the Government from excise and sales tax on liquor was Rs 5,599.38 crore (Rs 4,921.81 crore) in the 10-month period up to January 2007.

New industrial policy

Tamil Nadu maintains its record as an attractive investment destination, he said.

It has seven large investments totalling over Rs 6,720 crore across sectors like information technology, telecommunication and automobile and auto components. The State Government would soon be coming out with a new industrial policy to further push investments, he said.

The State was comfortable on meeting the power demand. Nearly 2,500 MW of State-sector power projects were in the pipeline and would be completed by 2010-11. This would be in addition to the existing capacity over over 10,000 MW. The expansion was from North Chennai, Ennore, Mettur and Tuticorin.

Urban infrastructure was also being upgraded under the Jawaharlal Nehru Urban Renewal Mission. Chennai, Coimbatore and Madurai were included under the mission and the Government was taking steps to include more urban centres under the programme.

Under the existing programme over Rs 900 crore is being provided by the Centre for drinking water, drainage, sewerage and roads, he said.

Grains output

Thanks to good monsoons, food grain production target for the year was more than 100 lakh tonnes against 96 lakh tonnes in 2006-07, Mr Tripathy said. This was up from 74 lakh tonnes in the earlier year. Crop loans provision in 2006-07 was more than Rs 11,000 crore against Rs 9,600 crore in the previous year.

This was an indication that crop loan disbursement was on track and timely, he said.

The State will distribute over 25,000 acres to the landless farmers in mid-March. This would be in addition to the 50,076 acres distributed to 54,799 beneficiaries since September 2006. Over 23,000 acres of wasteland have been reclaimed at a cost of Rs 5.61 crore under the scheme, he said.

Hike in milk price

On dairy development, officials said the Government has decided to hike the procurement price for milk. Dairy farmers would be paid Rs 12 a litre, against Rs 10.50 earlier for cows milk. For buffalo milk the procurement price would be Rs 14 a litre against Rs 12.50.

Selling price has been increased and consumers would be paying Rs 13.75 a litre against Rs 12.50, earlier. Buffalo milk would cost Rs 18.25 against Rs 17.