Presenting the budget with a "marginal revenue surplus" of a little over Rs 173 crore amid a DMK walkout over "foisting" of land grab cases against them, Finance Minister O Panneerselvam said the overall outstanding debt at the end of 2011-12 was expected to be around Rs 1,18,610 crore.
"We have eliminated the previous year's revenue deficit of Rs 2,720 crore and generated a marginal revenue surplus of Rs 173.87 crore in this Budget. I am also proud to say that our Budget size for the first time exceeds Rs one lakh crore," he said in the presence of Chief Minister J Jayalalithaa.
Projecting the outstanding debt at the end of 2011-12 at Rs 1,18,610 crore, he said that borrowing proposed in the current year was "unavoidable," as the state had to keep up the pace of its developmental activities. It started the year with outstanding debt of Rs 1,01,349 crore, he said.
However, the oustanding debt will not exceed 13th Finance Commission norms of 24.50 per cent of GSDP as at the end of 2011-12, as this ratio (for Tamil Nadu) will be only 20.39 per cent, he said describing it as a "redeeming feature."
"The total revenue receipt for the Revised Budget Estimates 2011-12 is at Rs 85,685 crore. The state's own revenue is projected at Rs 59,787 crore and Non tax Revenue is projected at Rs 5,015 crore. The share of Union taxes and grant-in-aid from Government of India is projected at Rs 13,111 crore and Rs 7,772 crore, respectively.
"I also project revenue expenditure at Rs 85,511 crore. There will be a marginal revenue surplus of Rs 173.87 crore," Panneerselvam said.
The fiscal deficit will be Rs 16,881 crore and Gross State Domestic Product will be 2.90 per cent he said, adding fiscal consolidation target will be achieved by eliminating the revenue deficit and restricting the fiscal deficit to below three per cent of GSDP.
"We will continue to follow this fiscal discipline in future," he said.