Tamil Nadu government presented its budget to the assembly today. I did not have lot of motivation to study details of budget, because Tamil Nadu is gloomy as we all know from Mr. Panneerselvam is a proxy Chief Minister of Tamil Nadu. And we all know the government apparatus is just hanging there to collect the monthly pay checks.!
The revised estimate of Revenue for current year 2014-15 is reduced to Rs. 85,772 from original budget of Rs. 91,835. The reduction is Rs 6063. In Last year's budget, TN govt projected 10% growth in its Revenue. However, the government only achieved 2.9% revenue growth.
What does this mean? If you subtract the inflation to bring the Tax Growth to constant prices, the net Growth of Tax revenue is Negative?
If state GDP is grown around 10 as per the Statistics, why would the Revenue growth is only 2.9%?
This tells the pathetic state of Tamil Nadu economy. I believe the Tamil Nadu's economic growth, after adjusting to Constant prices, would be in negative. Tamil Nadu is in recession. But, no one wants to admit it yet.
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