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TN expects stronger growth in FY21 than FY20

TN expects stronger growth in FY21 than FY20

Chennai, Feb 14 (SocialNews.XYZ) Tamil Nadu expects a stronger economic growth performance in 2020-21 as against the projected 7.27 per cent for 2019-20, said Deputy Chief Minister O. Panneerselvam.

Presenting the state budget for 2020-21 in the Assembly on Friday, Panneerselvam said: "In 2019-20, growth is projected to be 7.27 per cent, which is significantly higher than the projected all India growth rate of 5 per cent. We expect an even stronger growth performance in 2020-21."

 

The state's economy grew at 8.17 per cent in 2018-19.

He said the global and national level economic headwinds are faced by Tamil Nadu as well.

"At the All India level, the growth estimates for 2019-20 have been revised downwards and projected at 5 per cent in constant price terms. But Tamil Nadu has withstood these fierce headwinds. Due to the diversified nature of the economy of the State, the sustained policy initiatives of the State Government, but above all by the dint of hard work and effort by the industrious and productive people of the State, Tamil Nadu's economy grew at 8.17 per cent in 2018-19," he said.

According to him, the state's fiscal deficit was estimated at Rs. 59,346.29 crore which is 2.84 per cent of gross state domestic product (GSDP), below the three per cent norm for 2020-21.

"In order to finance the fiscal deficit during 2020-2021, it is estimated that Rs. 59,209.30 crore will be raised as net debt against the overall permissible borrowing limit of Rs. 62,757.80 crore. Therefore, the net outstanding debt as at the end of 31.3.2021 is expected at Rs. 4,56,660.99 crore and debt to GSDP ratio will be 21.83 per cent which is well within the norm of 25 per cent," Panneerselvam added.

He said the total revenue receipts in Budget Estimates 2020-21 are estimated at Rs. 2,19,375.14 crore. The revenue expenditure has been projected for the year 2020-2021 at an aggregate level of Rs. 2,40,992.78 crore.

The revenue deficit for 2020-21 is estimated at Rs. 21,617.64 crore, he said.

Source: IANS

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TN expects stronger growth in FY21 than FY20

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