Chennai: Tamil Nadu government today presented a tax-free interim budget of the poll-bound state and assured to take all steps necessary to put the economy back on the growth path.
The government blamed the fall in global crude oil prices and reduced share in the central devolution amount, among others for the slowdown.
Presenting the budget in assembly, Finance Minister O Panneerselvam said, "There was a significant fall in state's own tax revenue growth rate, particularly in commercial taxes. This was due to reduced sales tax realisation on petroleum products because of fall in international crude oils prices."
Panneerselvam did not propose any new taxes.
"Further, the reduced share in central devolution, delay in reimbursement of grants-in-aid from government of India in addition to reduced Central share in centrally sponsored schemes have caused strain on the state finances," he said.
However, expenditure had been kept under control and the trends in expenditure pattern was steady, he said.
Panneerselvam said despite constraints on revenue receipts, the fiscal deficit, net borrowings and debt-GSDP ratio will be fully kept with in the permissible limit except during 2017-18, on the presumption that the seventh pay (RPT) pay commission recommendations will be implemented.
"The state government has been taking all necessary steps to put the economy back on the growth path," he said.
Meanwhile, the opposition, including DMDK, DMK and the Left parties, boycotted the budget presentation when they staged a walk out after being denied permission to raise some issues.