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Gross borrowing slightly exceeds revised estimates by 1% over lockdown

Tamil Nadu has borrowed close to a massive Rs 40,000 crore in four-and-a-half months, compared to Rs 17,000 crore last year

The borrowings exceeded RE despite both indirect and direct tax collections surpassing RE

Government borrowing surpassed Revised Estimates (RE) by about 1 per cent in 2020-21. The government had initially pegged the borrowing at Rs 7.8 trillion, but raised it to Rs 12 trillion as Covid-19 forced a nationwide lockdown and the government doled out a relief package.

However, the borrowings were further raised to Rs 12.80 trillion in RE as the government also tried to bring transparency in subsidies.

The borrowings exceeded RE despite both indirect and direct tax collections surpassing RE.

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