The State government on Tuesday tabled a Bill in the State Legislative Assembly seeking to amend the Tamil Nadu Fiscal Responsibility Act, 2003 to extend the time limit set out to eliminate the revenue deficit and reduce fiscal deficits to 3% of the Gross State Domestic Product by March 31, 2024.
According to the Statement of Objects and Reasons in the Bill introduced in the House by Minister for Finance and Human Resources Management Palanivel Thiaga Rajan, the 15th Finance Commission, in its report for 2021-26, has recommended an extra annual borrowing space for the States, of the magnitude of 0.50% of their Gross State Domestic Product for each of the first four years of the award covering the period 2021-22 and 2024-25, based on certain performance criteria in the power sector.
Further, the Finance Commission has also recommended fixing the net borrowing limit to the Gross State Domestic Product at 4%, 3.5% and 3% for the years 2021-22, 2022-23, 2023-24 to 2025-26 respectively, it added. The Bill is expected to be taken up for consideration during this ongoing session.
