Audit Reports
Tamil Nadu
Report of 2011 – Financial Audit on State Finance of Government of Tamilnadu
Overview
Based on the audited accounts of the Government of Tamil Nadu for the year ending March 2011, this report provides an analytical review of the Annual Accounts of the State Government. The financial performance of the State has been assessed based on the Tamil Nadu Fiscal Responsibility Act, 2003 (FRBM Act) and its amendment in 2010, Budget Documents, Economic Review 2010-11, Thirteenth Finance Commission Report and other financial data obtained from various Government departments and organisations. The report is structured in three Chapters.
Chapter I is based on the audit of Finance Accounts and makes an assessment of Tamil Nadu Government's fiscal position as on 31 March 2011. It provides an insight into trends in committed expenditure and borrowing pattern, besides giving a brief account of Central funds transferred directly to State implementing agencies through the off-budget route. Chapter II is based on audit of Appropriation Accounts and it gives the grant-by-grant description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Chapter III is an inventory of Tamil Nadu Government's compliance with various reporting requirements and financial rules. The report also has an appendage of additional data collated from several sources in support of the findings.
Revenue Receipts: During the current year, the State's revenue receipts (RS 70,188 crore) increased by 25.69 per cent over the previous year. The robust growth in revenue receipts was mainly due to improved tax revenue. On the other hand, the non-tax revenue (RS 4,652 crore) of the State decreased by 7.46 per cent over the previous year. The State's revenue receipts as a percentage of Gross State Domestic Product (GSDP) marginally declined from 13.17 per cent in 2006-07 to 12.83 per cent in 2010-11, which indicates that the growth in tax revenue had not kept pace with that of GSDP. Revenue expenditure: Of the total expenditure of RS 87,604 crore during 2010-11, revenue expenditure (RS 72,916 crore) accounted for 83.23 per cent of the total expenditure. Nearly 71 per cent of the revenue receipts of the State were spent on committed expenditure such as interest payments, salaries, pension and subsidies leaving little for other purposes.