Chennai, March 25 (IANS) Tamil Nadu Chief Minister O. Panneerselvam, who also holds the finance portfolio, presented a tax-free budget for fiscal 2015-16 here on Wednesday, while announcing various concessions on value added tax (VAT).
Panneerselvam said the government had decided against imposing additional taxes despite the severe financial burden and the slow growth in the state's tax revenues.
Panneerselvam exempted fishing accessories like ropes, floats, twine, fishing lamps and swivels from VAT.
Similarly, mosquito nets have been exempted from VAT.
Panneerselvam reduced the VAT rates on cardamom, LED lamps, air compressors, cell phones and pump sets.
He said the electricity tax on power generating plants using biomass would be withdrawn.
According to him, the government has estimated the revenue deficit for 2015-16 at Rs.4,616.02 crore with revenue receipts projected at Rs.142,681.33 crore and the revenue expenditure put at Rs.147,297.35 crore.
He said the revenue deficit is inevitable owing to increased subsidies, slow tax growth and allocations to social sectors.
Projecting a capital expenditure of Rs.27,213.17 crore, the fiscal deficit is estimated at Rs.31,829.19 crore.
The major revenue streams for the state are commercial taxes (Rs.72,068.40 crore), state excise (Rs.7,296.66 crore), motor vehicles tax (Rs.4,882,53 crore).
The tax revenue is expected to log a modest growth of around 12 percent over last fiscal.
Panneerselvam said the share of central taxes is projected at Rs.21,149.89 crore while grants-in-aid from the central government will be Rs.16,376.79 crore.
He said the state's net borrowings would be raised to Rs.30.446.68 crore against the permissible levels of Rs.32,990 crore.
The total outstanding debt for the state by the end of the fiscal is estimated at Rs.211,483 crore.
Russia fired 120 missiles from air and sea areas on Ukraine on Thursday. The explosions of these
UK MP criticizes BBC for attacking PM Modi, alleges biased reporting
Lord Rami Ranger, a member of the House of Lords, called the Upper House of Britain, has strongly
The case of the death of a 26-year-old employee of Ernst & Young (EY), a well-known company i
A major security breach occurred on Friday at the Chennai residence of Tamil superstar and politi
The Bengaluru Metro Rail Corporation Limited (BMRCL) on Wednesday suspended the Deputy Chief Engi
UN Secretary-General stresses establishing peace in Ukraine, says war cannot be the solution
On the completion of one year of the Ukraine war, UN Secretary-General Antonio Guterres said that
Prime Minister Narendra Modi has spoken to Assam Chief Minister Himanta Biswa Sarma, Sikkim Chief
The Boxing Day Test match played between India and South Africa (IND vs SA 1st Test) ended on the
What will be available and what will be closed during the 21-day lockdown
नरेंद्र मोदी ने COVID-19 महामारी से लड़ने
Prime Minister Narendra Modi on Wednesday held a meeting with Air Force Chief RKS Bhadauria amid
