Except Kerala others have refrained from even marginally increasing tax rates to augment revenue resources to meet developmental needs. One positive aspect of these budgets is that all of them have given top priority to social welfare by allocating more funds to health, education and social welfare schemes.
Barring Kerala, others, namely Tamil Nadu, Andhra Pradesh and Karnataka, are expected continue to have revenue surplus for the financial year 2014-15 as in the previous year 2013-14. Revenue deficit for Kerala is expected to increase only marginally. Fiscal deficit is expected to increase marginally in Andhra Pradesh and Kerala and significantly in Tamil Nadu and Karnataka.
Revenue receipts and revenue expenses of all four southern states are expected to increase substantially. Capital expenditure increase is substantial both in Karnataka and Kerala.
Annual Plan outlays
The maximum increase in Annual Plan outlays for2014-15 is seen in Karnataka (34.75 per cent) and Andhra Pradesh (28.31 per cent) while there is moderate increase in Kerala (20 per cent) and Tamil Nadu (18.84 per cent).
In Tamil Nadu’s Annual Plan, substantial allocation has been made to agricultural sector, infrastructure projects, energy, rural development, health and education. Andhra Pradesh continues to give priority to agriculture, irrigation, energy, education and urban development.