CHENNAI: On June 16, Tamil Nadu finance minister N Marie Wilson presented a white paper that showed the state’s coffers in a shambles. On Wednesday, he presented C Joseph Vijay-govt’s maiden budget with a promise to set things right.“The repair work has started, but we will need at least two years to bring the financial administration back to the track of fiscal prudence,” Wilson said. The white paper had pegged the state’s total debt at around Rs 13.2 lakh crore. Now, the numbers suggest the govt is trying fiscal discipline without sharply curtailing spending.The budget targets to retain a fiscal deficit at 3% of GSDP (at Rs 1.22 lakh crore) even as revenue expenditure is projected to rise. This shows the govt is relying on stronger revenue mobilisation to partly offset higher spending and narrow the revenue deficit.The finance minister said the govt would add Rs 15,000 crore through better GST compliance, revised liquor pricing, new property guideline values and better tax administration. On the spending side, procurement reforms and stricter project scrutiny are expected to boost efficiency, while greater use of public-private partnerships would support infrastructure creation within borrowing limits.The strategy now hinges on whether administrative reforms can translate into sustained revenue growth that outpaces debt.
