TN's revenue rises to ₹97,887 cr in Q3, tax revenue at ₹69,943 cr

Tamil Nadu’s finances are on the rise in the first three quarters of the current financial year.

As per provisional data released by the Comptroller and Auditor General (CAG) at the end of December (third quarter), Tamil Nadu’s total revenue is ₹97,887.21 crore, which is 55.24 per cent of the budgeted target. This is against 52.35 per cent achieved in the last financial year during the same period.

Out of the total revenue, the tax revenue alone is ₹69,943.71 crore, which is 62.33 per cent of the expected budgeted revenue. In December 2020, the total tax revenue was ₹53,711.70 crore and this year, there is an increase of ₹16,232.01 crore in the first three quarters of the current financial year.

GST revenue contributes a huge share in the total revenue. In the first three quarters of this financial year, the GST revenue has been ₹23,386.89 crore against ₹17,686.26 crore, seeing an increase of ₹5,700 crore.

Similarly, stamps and registration fees have been ₹5,320.86 crore against ₹3,715.42 crore.

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“Compared to last financial year, this year, the total lockdown has been less and most of 2021, all establishments and factories worked except for April and May when the COVID-19 cases were on the rise,” said a senior Financial department official.

The robust revenue collections were driven by property registration, and in a few days’ time, the collections will touch ₹10,000 crore for this fiscal year. The revised Budget presented by the DMK government after coming to power has estimated revenue from stamp duty and registration charges at ₹13,252.67 crore in 2021-22, as against ₹14,879.37 crore projected in the Interim Budget for 2021-22.

Across states, revenue from stamp duties more than doubled in the first quarter of 2021-22 and recorded a growth in 2021-22 when compared to previous years, a half-yearly review of government finances by the Department of Economic and Policy Research, Reserve Bank of India, the official said.

Sales tax revenue collection has also increased hugely in the first three quarters.

As per the data, ₹16,637.09 crore has been collected under sales tax (tax on fuel and liquor) against ₹11,731.61 crore.

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“With the economy open most of the time, the consumption of fuel and liquor have increased leading to more sales tax revenue. The collection has increased despite the DMK government lowering the petrol price by ₹3 soon after it took charge,” said the official. Excise revenue has increased by ₹1886.63 crore.

On the expenditure side, the government’s total revenue expenditure has been ₹67,591.93 crore this financial year compared to ₹67,970.98 crore. Interest payments, payments towards subsidy as well as towards salaries and pension have all increased in this financial year as the government provided ₹4000 per ration card and also other subsidies to help poor people.