Tamil Nadu govt. announces tax-free interim budget

Chennai :-Tamil Nadu government on Tuesday announced a tax-free interim budget of the poll-bound state and assured to take all steps essential to put the economy back on the growth path. The Tamil Nadu government blamed the fall in world crude oil prices and reduced share in the central devolution amount, among others for the slowdown. Finance Minister O. Panneerselvam announces the budget in assembly and said: “There was a significant fall in state’s own tax revenue growth rate, especially in commercial taxes. This was due to reduced sales tax realisation on petroleum products because of fall in international crude oils prices.” FM Panneerselvam did not impose any new taxes. “Further, the reduced share in central devolution, delay in reimbursement of grants-in-aid from government of India in addition to reduced Central share in centrally sponsored schemes have caused strain on the state finances,” he said. Panneerselvam said despite constraints on revenue receipts, the fiscal fall, net borrowings along with debt-GSDP ratio will be fully kept within the permissible limit except during 2017-18, on the estimited that the seventh pay (RPT) pay commission recommendations will be enforced. “The state government has been taking all essential steps to put the economy back on the growth path,” he said