Chennai : The State’s fiscal deficit for 2016-17 is estimated at Rs 61, 341 crore, which is 4.58 per cent of the gross state domestic product (GSDP).

This was announced in the budget address by Finance, Fisheries and Personnel and Administrative Reforms Minister D Jayakumar. He told the Assembly on Thursday that if the TANGEDCO debt taken over by the government was excluded, the deficit would be Rs 38,526 crore, 2.88 per cent of the GSDP.

Taking over the debt of Rs 22,815 crore had resulted in the deficit crossing the Tamil Nadu Fiscal Responsibility Act limit of three per cent of GSDP.

However, the Union government had specifically authorised the State Government to borrow beyond the limit to absorb this debt burden, he said.

As a result, a Bill to amend the Act would be introduced during this session, he added.

While the total revenue receipts have been projected at Rs 1,59,363 crore in the Budget estimates for 2017-18, it is estimated at Rs 1,75,293 crore, leaving a revenue deficit of Rs 15,930 crore, Jayakumar told the House.

The budget estimates were prepared under severe resource constraints. “The uncertainty in the domestic economy continues. This government is working hard to overcome this and reverse the economic downtrend,” the Minister added.