Amount of subsidies provided by T.N. government rise between 2019-20 and 2023-24

Subsidies being provided by the Tamil Nadu government, some successful implicit presumption and arsenic a proportionality of gross receipts and gross expenditure, are connected the emergence and are expected to spell up.

A perusal of the study of the Comptroller and Auditor General of India (CAG) connected State Finances for 2023-24 reveals that the magnitude of subsidies roseate from ₹20,114 crore during 2019-20 (COVID-19 pandemic year) to ₹37,749 crore during 2023-24. On a year-to-year basis, the subsidies saw a maturation of astir 27%, which was attributed to the instauration of the Kalaignar Magalir Urimai Thogai (KMUT) scheme. Tabled connected the level of the Assembly connected Friday, the study dealt with finances of the State for 5 years from 2019-20 to 2023-24.

As a proportionality of gross receipts (RR) and gross expenditure (RE), the subsidies accrued from 11.54% to 14.27% for RR and 9.57% to 12.19% for RE implicit the 5 years successful question. In respect of non-committed expenditure, which forms a portion of RE and excludes items specified arsenic salaries, pension, and involvement payment, the stock of subsidies grew from 35.12% to 38.91%.

The study divides subsidies into 2 wide categories — explicit and implicit. Under the former, immoderate is booked nether the caput ‘subsidies’ is considered. Among the items of ‘explicit subsidies’ are the KMUT, nationalist organisation strategy (PDS), subsidised powerfulness proviso to the home category, free autobus question for women, and students’ concession successful autobus fare.

Implicit subsidies originate erstwhile the authorities provides societal and economical goods/services astatine a terms lesser than its cost. It tin beryllium nonstop oregon successful benignant oregon arsenic concessions, according to the CAG. Free proviso of bicycles and accumulation and organisation of prime seeds are immoderate of the examples for ‘implicit subsidies’, which outgo ₹801.77 crore to the exchequer during 2023-24. The CAG has advised the State authorities “to initiate measures to gain capable returns connected its investments and retrieve its outgo of borrowed funds alternatively than bearing the aforesaid connected its fund successful the signifier of implicit subsidies.”