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POVERTY REDUCTION STRATEGY TN

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Chart 3.3: Profile of Tamil Nadu State Debt Relative to GSDP<br />

35.00<br />

30.00<br />

25.00<br />

20.00<br />

29.34<br />

27.73<br />

25.45<br />

24.81 25.70<br />

21.19 22.76 22.91<br />

21.40 21.421.61<br />

18.69 18.30 17.98 18.06 17.61<br />

18.36<br />

15.00<br />

10.00<br />

5.00<br />

0.00<br />

1993-94<br />

1994-95<br />

1995-96<br />

1996-97<br />

1997-98<br />

1998-99<br />

1999-00<br />

2000-01<br />

2001-02<br />

2002-03<br />

2003-04<br />

2004-05<br />

2005-06<br />

2006-07<br />

2007-08<br />

2008-09 RE<br />

2009-10 BE<br />

Outstanding Liabilities to GSDP Ratio<br />

c. Own Tax Revenues<br />

Relative to GSDP, own tax revenues in Tamil Nadu have historically been one of the<br />

highest among states for many years. The time profile of the ratio of own tax revenues<br />

to GSDP indicates that after remaining below 9 percent for most years in the nineties<br />

(with the exception of 1995-96), it improved to above 9 percent in 2001-02 and above 10<br />

percent for the next two years 2004-05 and 2005-06 and thereafter little below 10<br />

percent (Table 3.1).<br />

Chart 3.4 indicates this upward rise in the own tax to GSDP ratio since 2001-02.<br />

It is because of this consistent buoyant performance that Tamil Nadu has overtaken<br />

other states in terms of tax-GSDP ratio. Tamil Nadu has had the distinction of showing<br />

the highest tax-GSDP ratio among the general category states. At the average of 9.3<br />

percent during 2001-04, its tax-GDP ratio was more than double of that of West Bengal.<br />

It has overtaken Kerala, which used to be the highest tax-GSDP ratio state earlier in the<br />

nineties. Only Karnataka comes anywhere close to Tamil Nadu’s tax-GSDP ratio.<br />

56

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