Chennai
Presenting the interim budget for the year 2016-17 in the State Assembly, he said the significant fall in state's own tax revenue growth rate, particularly in commercial taxes was due to reduced sales tax realisation on petroleum products because of fall in international crude oils prices.
''Further, the reduced share in Central devolution, delay in reimbursement of grants-in-aid from the centre, in addition to the reduced central share in Centrally sponsored schemes, have caused strain on the state finances'', he added.
Stating that the expenditure has been kept under control and the trends in the expenditure pattern were steady, Mr Panneerselvam said, in spite of the constraints on revenue deficits, the overall fiscal deficit, net borrowings and the debt-GSDP ratio will be fully kept within the permissible limits, except during 2017-18 based on the presumption that the seventh pay commission recommendations would be implemented from then onwards.
The Finance Minister said the state government has been taking all necessary steps to put the economy back on the growth path and pointed out that the GSDP growth rate, which stood at 3.39 per cent in 2012-13, has improved to 7.25 per cent in 2014-15 in real terms (2004-05 prices).
''During the current year, the GSDP growth rate is estimated at 9.13 per cent at 2011-12 constant prices'', Mr Panneerselvam added.
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