Sources have added from Chennai that the Tamil Nadu government, which has been doing a tight rope walk over the past six years on the fiscal front, will come under further strain as and when it implements the recommendations of the Seventh Pay Commission for its employees.
The State government, in its interim budget for 2016-17, had projected the revenue deficit based on the assumptions that the Seventh Pay Commission recommendations would be implemented from 2017-18 fiscal onwards and with a month to go for the State budget, officials are tight-lipped as any decision on its implementation has to be taken at the highest level.
While the dip in revenue collection over the past five years is attributed to the global economic slowdown, allocation of additional funds for welfare schemes has also pushed the revenue expenditure. For instance, the State has announced free 100 units of power to all households from this year.
Meanwhile the opposition parties have been accusing the government of excessive borrowing, the outstanding debt including provident fund is expected to be around Rs. 2.47 lakh crore by the end of this fiscal where this will constitute only 19.62% of the GSDP, against the accepted norm of 25%.
