Tamil nadu economy updates
Gross State Domestic Product (GSDP)
The Gross State Domestic Product (GSDP) of Tamil Nadu for 2019-20 at current prices is estimated to be Rs 17,25,639 crore, which is 8% higher than the revised estimate for 2018-19. (Budget 2019-20)
Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.46 per cent to Rs 16.06 trillion (US$ 222.58 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent to Rs 14.41 trillion (US$ 199.69 billion).
Total expenditure
Total expenditure for 2019-20 is estimated to be Rs 2,64,556 crore, a 6.5% increase over the revised estimate of 2018-19. In 2018-19, as per the revised figures, there is estimated to be an increase of Rs 6,707 crore (2.8%) of expenditure over the budgeted estimate. (Budget 2019-20)
Total receipts
Total receipts (excluding borrowings) for 2019-20 are estimated to be Rs 2,02,788 crore, an increase of 8.2% as compared to the revised estimate of 2018-19. In 2018-19, total receipts (excluding borrowings) is estimated to be higher than the budgeted estimate by Rs 5,621 crore (3.1%).
Revenue deficit
Revenue deficit for the next financial year is targeted at Rs 14,315 crore, or 0.83% of the GSDP. Fiscal deficit is targeted at Rs 44,176 crore (2.56% of GSDP).
Accident cum life insurance scheme
An accident cum life insurance scheme will be launched for all families below the poverty line. The scheme will provide an insurance cover of Rs two lakh and Rs four lakh for natural death and accidental death, respectively. In case of permanent disability, the amount will be Rs one lakh. Rs 250 crore has been allocated for payment of premium under the scheme in 2019-20. (Budget 2019-20)
Urban housing budget
The Tamil Nadu Housing and Habitat Development for Urban Poor programme will be launched with the World Bank’s assistance. Under the programme, 38,000 tenements, at a cost of Rs 4,648 crore, will be constructed in Chennai and the surrounding areas for poor families living at river margins.
Budget for Electric and BS-VI buses
Rs 5,890 crore has been allocated to procure 12,000 new BS-VI buses and 2,000 new electric buses. 2,000 BS-VI buses and 500 electric buses will be introduced in the first phase. (Budget 2019-20)
Budget for Public health
The Tamil Nadu Health Systems Reforms programme will be launched at a cost of Rs 2,686 crore to improve access of poor and disadvantaged to the government health facilities. Further, an essential diagnostics list will be formulated to guarantee a set of diagnostic tests at each level of health care.
Revenue deficit
It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. The budget estimates a revenue deficit of Rs 14,315 crore (or 0.83% of GSDP) in 2019-20, a decrease from 1.21% of GSDP as per the revised estimate of 2018-19. Revenue deficit was 1.49% of GSDP in 2017-18. These estimates indicate that the state is moving towards the target of eliminating revenue deficit, prescribed by the 14th Finance Commission.
Fiscal deficit
It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the state government, and leads to an increase in total liabilities. In 2019-20, fiscal deficit is estimated to be Rs 44,176 crore, which is 2.56% of the GSDP. The estimate is under the 3% limit prescribed by the 14th Finance Commission. Fiscal deficit in 2017-18 and revised estimate of 2018-19 are also within the 3% limit.
FDI inflow trends
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Tamil Nadu and Puducherry during April 2000 to December 2018 stood at US$ 29.28 billion. During 2017-18, total merchandise exports from the state stood at US$ 29.75 billion. During 2018-19^, the exports stood at US$ 27.44 billion.
Special economic zone
Tamil Nadu has 51 formally approved SEZs, 47 notified SEZs and three with in- principle approval SEZs and 40 exporting SEZs, as of January 2019.
IT and ITes export
IT & ITeS exports from Tamil Nadu have increased to Rs 1,111.79 billion (US$ 17.25 billion) in 2017-18, at a growth rate of 8.55 per cent year-on-year.
Tourism industry
Tamil Nadu’s tourism industry increased in terms of tourist arrivals to reach 349.92 million in 2017, at a CAGR of 16.48 per cent between 2011 & 2017. Tamil Nadu ranks 1 st in terms of domestic tourist arrivals and 2 nd in terms of foreign tourist arrival in 2017(P).
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