NE BUSINESS BUREAU
CHENNAI, JAN 16
Tamil Nadu Finance Minister PTR Palanivel Thiaga Rajan’s meticulous efforts have paid rich dividends to MK Stalin-led DMK Government. In the first half of FY2022-23, Tamil Nadu has witnessed an increase of 37 percent in the state’s own tax revenue, a remarkable achievement but PTR has miles to go.
According to official reports, the review of receipts and expenditure as per budget estimates of 2022-23 done by finance minister PTR Palanivel Thiaga Rajan stated that the state’s own tax revenue (SOTR) for the first six months (April to September) of FY23 reached to Rs 72,441 crore, up 36.92 percent compared to same period of last fiscal year.
This was 50.73 percent of the budget estimate of Rs 1.42 lakh crore for the full financial year. The SOTR from commercial taxes, state excise duty and motor vehicle taxes has seen significant expansion due to economic recovery.
However, the state’s Own Non-Tax Revenue (SONTR) has not shown much recovery. The budget estimate for SONTR was Rs 15,537 crore up to September 2022.
It was a growth of 50.83 percent over Rs 3,974 crore for corresponding period last year and constituted 38.58% of the budgeted estimate for 2022-23.
As per the budget estimates, the commercial tax revenue was Rs 54,494 crore as of September 2022, against the expected to be Rs 1.06 lakh for the whole fiscal year. This was 34.53 per cent more compared to the corresponding period of the previous year.
Of the budget estimate of Rs 10,589 crore under state excise revenue for 2022-23, mop-up for the first six months was Rs 5,351 crore or 53.06 per cent of the estimate. Last fiscal, the state’s excise revenue was Rs 8,237.
The decreasing trend in the SONTR is expected to be the consequence of shortfall of SONTR receipts due to the poor collection and failure to revise rates on certain non-tax items.
