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.BUT TN HAS A WAY OUT (Tamil Nadu's Medium Term Fiscal Policy aims to reduce fiscal deficit to three percent of GSDP by 2007-2008).
(From India Business Insight)
Tamil Nadu's medium-term fiscal policy aims to reduce fiscal deficit to three percent of the gross state domestic product (GSDP) by 2007-2008. It also aims to reduce revenue deficit as a percentage of total deficit to five percent and make the state revenue-surplus, both by 2008-2009. The policy envisages a 54.8 percent increase in revenue receipts to Rs34,943.5 crore by 2008-2009 (from Rs22,567.3 crore in 2003- 2004). At the same time, it expects revenue expenditure to grow at a much slower 33.8 percent to Rs34,903.01 crore (Rs26,084.38 crore). The growth in revenue receipts is expected to be driven by an increase in the State's tax …
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