TN's revenue goes up in first two quarters of FY21 amid high expenses
Tamil Nadu’s revenue in the first two quarters of this financial year has been better compared to the same period last year.
The state has received a total of ₹85,209.74 crore till September this year, compared to ₹67,400.23 crore received in the first two quarters of the last financial year.
Fiscal deficit at the end of first two quarters has also been much less compared to the previous year. The fiscal deficit in the first two quarters of 2021-22 has been ₹22,269.55 crore, compared to ₹34,635 crore in the previous year.
Out of the total revenue, tax revenue alone in the first two quarters was ₹63,519.54 crore and GST revenue was ₹19,173 crore, which is 45 percent of the total GST revenue expected for this financial year.
“Compared to the previous financial year, this year, the lockdown was only for a few months and more sections of the economy were allowed to operate. Due to this, the GST revenue increased,” said a senior Finance Department official.
Surprisingly revenue from sale of liquor and fuel has been less in this financial year compared to the same period in the last financial year. While revenue from value added tax (VAT) this year was ₹20,498.98 crore, revenue from VAT was ₹21,327.53 crore in the last year, which is 3.88 percent less.
“Liquor and fuel sales were a little less this year and there were also price changes in petrol price. Due to this, the VAT revenue is less this year,” said the official.
On August 14, while presenting the state’s revised budget, state Finance Minister PTR Thiaga Rajan said that the state has reduced petrol prices by ₹3 per litre, and will face a loss of ₹1,160 crore per year.
Among various revenue sources, the state has received a maximum revenue increase in stamps and registration.
“Compared to previous year, we received a 35 percent increase in the revenue from stamps and registration source. While in 2020-21, ₹4,628.70 crore was received as revenue from stamps and registration, in the present financial year, we have received ₹6,236.55 crore so far, which is 48 percent of the total revenue expected from this source in the revised budget,” said the official.
Share taxes from the Centre as per the Finance Commission devolution has increased by 17.31 percent in the present financial year. “We received ₹12,448.66 crore in this financial year compared to ₹10,611.38 crore in last year. This is due to an increase in the GST revenue for the Centre,” said the official.
Excise revenue has seen an increase of 12 percent in the present financial year. In the present first two quarters the excise revenue was ₹3916.72 crore, when compared to ₹3,496.07 crore in the last financial year.
“Overall, the revenue collection for the first two quarters in this present year is better than previous year but expenses are also higher as the government has announced several welfare announcements,” said the official.