Interim budget presented in TN assembly

Chennai, Feb 5(PTI) The interim budget for 2011-12presented by Finance Minister K Anbazhagan in the Tamil Naduassembly today showed a revenue surplus of over Rs 430 crore.

Presenting the last budget of the DMK government beforethe forthcoming assembly polls in the state, Anbazhagan in hisbudget estimates said revenue deficit will be "completelywiped out" at the end of the 2011-12 fiscal.

Total revenue receipts have been estimated at Rs 79,413crore and total revenue expenditure at Rs 78,974 crore, hesaid

As a result, revenue deficit will be completely wiped outby the end of the financial year 2011-12," he said.

There will be a revenue surplus of Rs 439 crore but furthersurplus "is ruled out" because of the last instalment of SixthPay Commission arrears due for payment, he said.

Fiscal deficit of the state would be 2.3 per cent of theGross State Domestic Product (GSDP), which would be belowthree per cent limit fixed by the 13th Finance Commission, hesaid.

On the debt front, the state government had been ''verycareful'' in managing it, he said, adding the outstanding debtincluding liabilities like provident fund was set to increase.

"The outstanding debt, which was Rs 57,457 crore as onMarch 31, 2006, is estimated to increase to Rs 1,01,541 croreas on March 31, 2011," he said.

Increase in the debt in the five year period from 2006-07to 2010-11 has been estimated at Rs 44,084 crore and the totalcapital expenditure during the same period has been Rs 44,667crore, he said.

"This shows that the whole of the mobilised debt has beenutilised for productive purposes", he said.

"The debt-GSDP (Gross State Domestic Product)ratio whichwas 22.29 per cent at the end of 2005-06 would be 19.58 percent at the end of 2010-11," he said.

On future prospects, he said the state''s own tax revenuewas estimated at Rs 49,125 crore for 2010-11 and Rs 53,783crore for 2011-12.

Non-tax revenue was estimated at Rs 4,280 crore in theinterim budget estimates, he said.

Anbazhagan said no new announcements were made in theinterim budget, but the government was prepared for it.

after taking into account details of various schemes underimplementation.

This included the Kalaignar Housing scheme and cooperativeloans waiver of Rs 7000 crore which were not part of DMK''selection manifesto (in 2006).

"The full-fledged budget estimates for the whole year willbe presented after the formation of the new governmentsubsequent to the forthcoming the assembly polls," he said.