“The tax revenue for the state government for the year 2021-22 should have been Rs 1.35 lakh crore and total revenue should have been Rs 2.18 lakh crore but due to COVID-19 the actual revenue is far less when compared to the expected revenue. Similarly, the revenue deficit should have bee Rs 41, 417.30 crore and the fiscal deficit should have been Rs 84,202.39 crore but both the deficits are higher this financial year”, said Ramadoss, while releasing the shadow budget, for the year 2021-22.
PMK is the only political party in the state to release shadow budget ahead of the state budget, every year. The budget is drafted with the aim to assist the state government in prioritising the sectors that need to be focused on that specific year.
Similarly, this year the shadow budget focuses on COVID-19 and economic recovery post pandemic. “COVID-19 spread across the country has adversely affected the economy of the entire country and recovering the economy post COVID-19 is the need of the hour. Gross State Domestic Production (GSDP) which should have been Rs 23 lakh crore is struggling to meet the target of Rs 20 lakh crore this year”, the shadow budget said.
In proportion to the lower economic growth and higher deficits, the shadow budget also states that the debt of the state will also increase. “State government has to get an additional debt of Rs 1 lakh crore this year which will push the state government’s direct debt to Rs 6 lakh crore and the debt of public sector companies to Rs 4 lakh crore. Overall debt of the state will increase to Rs 10 lakh”, the shadow budget stated.