Tammil Nadu postpones fiscal responsibility by two years

January 12th, 2010 - 2:37 pm ICT by IANS  

Chennai, Jan 12 (IANS) The Tamil Nadu government has postponed the target date for eliminating revenue deficit and capping the fiscal deficit at three percent of the gross state domestic product (GSDP) to fiscal 2010-11 from 2008-09.
The Tamil Nadu Fiscal Responsibility Act 2003 has been amended for the purpose.

The government cited the global economic recession and the resultant fall in tax revenues, as well as implementation of Sixth Pay Commission recommendations as the causes for the revenue deficit in 2009-10.

The state assembly Monday also passed the Rs.4,078.62 crore first supplementary estimates for FY 2009-10.

According to Finance Minister K. Anbazhagan, Rs.1,200 crore is required for providing rice at Re.1 per kg and selling other essential food items at subsidised rates through ration shops.

He said the food subsidy alone would amount around Rs.4,000 crore for the current fiscal.

The other expenditure heads for which the supplementary estimates were presented included premium payment for the Kalaignar Health Insurance Scheme, procurement of colour television sets for free distribution, loan to Tamil Nadu Civil Supplies Corporation for procurement of paddy, interest free advances to state transport corporations, strengthening of roads in towns and improvement of infrastructure in Sri Lankan refugee camps.

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