0% found this document useful (0 votes)
70 views7 pages

Tamil Nadu Budget 2024-25 Analysis

Uploaded by

ukeerandutta94
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
70 views7 pages

Tamil Nadu Budget 2024-25 Analysis

Uploaded by

ukeerandutta94
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tamil Nadu Budget Analysis

2024-25
The Finance Minister of Tamil Nadu, Mr. Thangam Thenarasu, presented the Budget for the state for the financial
year 2024-25 on February 19, 2024.
Budget Highlights
▪ The Gross State Domestic Product (GSDP) of Tamil Nadu for 2024-25 (at current prices) is projected to
be Rs 31,55,096 crore, amounting to growth of 16% over 2023-24.
▪ Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 4,12,504 crore, an increase of
12% over the revised estimates of 2023-24. In addition, debt of Rs 41,178 crore will be repaid by the state.
▪ Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 3,03,814 crore, an increase of 10% as
compared to the revised estimate of 2023-24.
▪ Revenue deficit in 2024-25 is estimated to be 1.6% of GSDP (Rs 49,279 crore), similar to the revised estimates
for 2023-24 (1.6% of GSDP). However, in absolute terms revenue deficit is estimated to be higher by Rs 4,372
crore in 2024-25 over revised estimate of 2023-24. In 2023-24, revenue deficit at the revised estimates stage is
expected to be 20% higher than the budget estimate.
▪ Fiscal deficit for 2024-25 is targeted at 3.4% of GSDP (Rs 1,08,690 crore). In 2023-24, as per the revised
estimates, fiscal deficit is expected to be 3.5% of GSDP.
Policy Highlights
▪ Education: Under the Tamizh Pudhalvan scheme, boys who have studied in government schools from 6th
to 12th standard will be provided financial assistance of Rs 1,000 per month to help them purchase learning
materials for their higher education. The scheme will cover around three lakh students with a cost of Rs
360 crore in 2024-25. The state government will also ensure that education loans worth Rs 2,500 crore are
disbursed by banks to one lakh college students in 2024-25.
▪ Housing: Eight lakh concrete houses will be constructed in rural areas by 2030. In the first phase, one lakh
new houses will be built in 2024-25 at a unit cost of Rs 3.5 lakh per house. Under Kalaignarin Kanavu
Illam scheme, funds will be provided to selected beneficiaries for constructing houses. It will be
implemented at a cost of Rs 3,500 crore in 2024-25.
▪ Roads: 2,000 km of rural roads will be developed at a cost of Rs 1,000 crore and 4,457 km of urban roads
will be upgraded at a cost of Rs 2,500 crore in 2024-25.

Tamil Nadu’s Economy Figure 1: Growth in GSDP and sectors in Tamil Nadu at
constant prices (2011-12)
▪ GSDP: In 2023-24, Tamil Nadu’s GSDP (at
constant prices) grew at 8.2%, same as in 2022- 20%
23. India’s GDP is also estimated to grow at 8.2% 15%
in 2023-24.
9.4%
9.3%
9.1%

8.2%
8.2%
7.9%
7.8%
7.1%
6.8%

6.4%

10%
▪ Sectors: In 2023-24, the services sector is
4.3%
3.8%
3.4%

estimated to grow by 9.4%, followed by 5%


0.1%

manufacturing (7.1%) and agriculture (4.3%). In


0%
2023-24, agriculture, manufacturing, and services
-0.4%
-0.7%

sectors are estimated to contribute 13%, 34%, and -5%


53% to the state’s economy, respectively (at
-10%
current prices).
-15%
▪ Per capita GSDP: The per capita GSDP of Tamil Agriculture Manufacturing Services Sector GSDP
Nadu in 2023-24 (at current prices) is estimated at Sector Sector
Rs 3,50,695, an increase of 14% over 2022-23. 2020-21 2021-22 2022-23 2023-24
Note: Agriculture includes mining and quarrying; manufacturing
includes construction, and electricity, gas, water, and other utility
services. These numbers are as per constant prices (2011-12) which
implies that the growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

Anirudh TR
anirudh@[Link] June 28, 2024
PRS Legislative Research ◼ Institute for Policy Research Studies
3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi – 110002
Tel: (011) 2323 4801, 4343 4035 ◼ [Link]
Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Budget Estimates for 2024-25


▪ Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 4,12,504 crore. This is an
increase of 12% over the revised estimate of 2023-24. This expenditure is proposed to be met through
receipts (excluding borrowings) of Rs 3,03,814 crore and net borrowings of Rs 1,04,319 crore. Total
receipts for 2024-252023-24 (other than borrowings) are expected to register an increase of 10% over the
revised estimate of 2023-24.*
▪ Revenue deficit in 2024-25 is estimated to be 1.6% of GSDP (Rs 49,279 crore), similar to the revised
estimates for 2023-24 (1.6 % of GSDP). Fiscal deficit for 2024-25 is targeted at 3.4% of GSDP (Rs
1,08,690 crore), marginally lower than the revised estimates for 2023-24 (3.5% of GSDP). In absolute
terms, both revenue deficit and fiscal deficit in 2024-25 are higher than the revised estimates for 2023-24.
Table 1: Budget 2024-25 - Key figures (in Rs crore)
% change from % change from
2022-23 2023-24 2023-24 2024-25
Items BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
Total Expenditure 3,53,860 4,09,147 4,12,977 1% 4,53,682 10%
(-) Repayment of debt 27,104 43,826 43,725 -0.2% 41,178 -6%
Net Expenditure (E) 3,26,755 3,65,321 3,69,251 1% 4,12,504 12%
Total Receipts 3,45,931 4,07,192 4,09,287 1% 4,49,311 10%
(-) Borrowings 1,01,062 1,33,945 1,34,095 0.1% 1,45,497 9%
Net Receipts (R) 2,44,869 2,73,246 2,75,195 1% 3,03,814 10%
Fiscal Deficit (E-R) 81,886 92,075 94,060 2% 1,08,690 16%
as % of GSDP 3.5% 3.3% 3.5% 3.4%
Revenue Deficit 36,215 37,540 44,907 20% 49,279 10%
as % of GSDP 1.5% 1.3% 1.6% 1.6%
Primary Deficit 34,975 37,399 39,391 5% 46,234 17%
as % of GSDP 1.5% 1.3% 1.5% 1.5%
GSDP 23,64,514 28,32,680 27,22,502 -4% 31,55,096 16%
Note: BE is Budget Estimates; RE is Revised Estimates. Primary Deficit may not match with budget documents due to difference in interest
payment figures in annual financial statement and MTFP statement.
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; PRS.

Expenditure in 2024-25
▪ Revenue expenditure for 2024-25 is proposed to be Rs Grants to TANGEDCO
3,48,289 crore, an increase of 10% over the revised
Between, 2019-20 and 2024-25 the state government is
estimate of 2023-24. This includes the expenditure on estimated to provide Rs 73,821 crore as grants to Tamil
salaries, pensions, interest, grants, and subsidies. Nadu Electricity Generation and Distribution Company
▪ Capital outlay for 2024-25 is proposed to be Rs 47,681 (TANGEDCO). This includes UDAY grants and grants
for funding its losses. However, TANGEDCO has
crore, an increase of 12% over the revised estimate of
continued to incur substantial losses due to a gap
2023-24. Capital outlay indicates the expenditure between its per unit cost of supply of electricity and per
towards creation of assets. unit revenue realised. In 2022-23, this gap was Rs 1.05
▪ In 2024-252023-24, loans and advances by the state are per kWh as compared to the national average of Rs
0.74 per kWh for state-owned discoms. The White
expected to be Rs 16,534 crore, higher than the revised
Paper released by the state government had noted that
estimates by 79%.* TANGEDCO’s losses are caused by both high costs and
low recoveries. It called for a complete restructuring of
TANGEDCO.

Table 2: Expenditure budget 2024-25 (in Rs crore)


% change from % change from
2022-23 2023-24 2023-24 2024-25
Items BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
Revenue Expenditure 2,79,964 3,08,056 3,17,484 3% 3,48,289 10%
Capital Outlay 39,530 44,366 42,532 -4% 47,681 12%
Loans given by the state 7,261 12,900 9,236 -28% 16,534 79%
Net Expenditure 3,26,755 3,65,321 3,69,251 1% 4,12,504 12%
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; PRS.

* This has been corrected on July 3, 2024.

June 28, 2024 -2-


Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of


salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits
the state’s flexibility to decide on other expenditure priorities such as capital outlay. In 2024-25, Tamil Nadu is
estimated to spend Rs 1,89,897 crore on committed expenditure, which is 64% of its estimated revenue receipts.
This comprises spending on salaries (28% of revenue receipts), interest payments (21%), and pension (14%). In
2023-24, expenditure towards pensions is estimated to be 9% lower than the budget estimate. In 2022-23, as per
actuals, 61% of the revenue receipts were spent towards committed expenditure.
Table 3: Committed Expenditure in 2024-25 (in Rs crore)
% change from % change from
2022-23 2023-24 2023-24 2024-25
Committed Expenditure BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
Salaries 68,588 77,240 75,546 -2% 84,932 12%
Pension 32,177 41,232 37,542 -9% 42,509 13%
Interest payment 46,911 54,676 54,669 -0.01% 62,456 14%
Total Committed
1,47,676 1,73,148 1,67,756 -3% 1,89,897 13%
Expenditure
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; PRS.

Sector-wise expenditure: The sectors listed below account for 55% of the total expenditure on sectors by the
state in 2024-25. A comparison of Tamil Nadu’s expenditure on key sectors with that by other states is shown
in Annexure 1.
Table 4: Sector-wise expenditure under Tamil Nadu’s Budget 2024-25 (in Rs crore)
% change
2022-23 2023-24 2023-24 2024-25 from RE Budget Provisions
Sectors
Actuals BE RE BE 23-24 to 2024-25
BE 24-25
▪ Rs 14,795 crore has been allocated for
Education, Sports, government secondary schools.
45,147 49,700 48,596 54,327 12%
Arts, and Culture ▪ Rs 13,026 crore has been allocated for
government primary schools.
▪ Rs 13,720 crore has been allocated
Social Welfare and towards Magalir Urimai Thogai scheme.
18,219 26,614 30,233 34,548 14%
Nutrition ▪ Rs 3,851 crore has been allocated for
pension under social security schemes.
▪ Rs 7,216 crore has been allocated for
payment to Tamil Nadu electricity board for
Agriculture and
23,648 22,971 21,108 24,232 15% usage of farm pump sets.
Allied Activities
▪ Rs 1,338 crore has been allocated for crop
insurance.
▪ Rs 17,889 crore has been allocated for
Transport 19,807 22,306 21,250 23,828 12%
capital outlay on roads and bridges.
▪ Rs 14,442 crore has been allocated for
funding losses of TANGEDCO.
Energy 17,642 8,426 24,176 21,606 -11% ▪ Rs 6,743 crore has been allocated for
power tariff subsidy for domestic
consumers.
▪ Rs 5,116 crore has been allocated for
Health and Family urban health services – allopathy.
17,621 18,545 18,796 19,730 5%
Welfare ▪ Rs 1,827 crore has been allocated for rural
health service – allopathy.
▪ Rs 3,875 crore has been allocated for rural
Rural Development 10,527 9,413 9,614 12,043 25%
employment guarantee scheme.
▪ Rs 7,119 crore has been allocated towards
Police 9,683 10,368 10,731 11,965 11%
district police.
▪ Rs 2,557 crore has been allocated for
Irrigation and Flood capital outlay on major irrigation.
6,297 7,755 7,146 7,763 9%
Control ▪ Rs 546 crore has been allocated towards
capital outlay on medium irrigation.
Water Supply and ▪ Rs 3,843 crore has been allocated for
2,951 6,418 4,432 6,993 58%
Sanitation capital outlay on rural water supply.
% of total
expenditure on all 54% 52% 54% 55%
sectors
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; PRS.

June 28, 2024 -3-


Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Receipts in 2024-25
▪ Total revenue receipts for 2024-25 are estimated to be Rs 2,99,010 crore, an increase of 10% over the
revised estimate of 2023-24. Of this, Rs 2,25,901 crore (76%) will be raised by the state through its own
resources, and Rs 73,109 crore (24%) will come from the centre. Resources from the centre will be in the
form of state’s share in central taxes (17% of revenue receipts) and grants (8% of revenue receipts).
▪ Devolution: In 2024-25, state’s share in central taxes is estimated at Rs 49,755 crore, an increase of 10%
over the revised estimate of 2023-24.
▪ Grants from the centre in 2024-25 are estimated at Rs 23,354 crore, a decrease of 13% from the revised
estimates for 2023-24.
▪ State’s own tax revenue: Tamil Nadu’s total own tax revenue is estimated to be Rs 1,95,173 crore in
2024-25, an increase of 15% over the revised estimate of 2023-24. Own tax revenue as a percentage of
GSDP is estimated at 6.2% in 2024-25, same as the revised estimates for 2023-24. As per the actual figures
for 2022-23, own tax revenue as a percentage of GSDP was 6.4%.
Table 5: Break-up of the state government’s receipts (in Rs crore)
% change from % change from
2022-23 2023-24 2023-24 2024-25
Items BE 2023-24 to RE 2023-24 to
Actuals Budgeted Revised Budgeted
RE 2023-24 BE 2024-25
State's Own Tax 1,50,223 1,81,182 1,70,147 -6% 1,95,173 15%
State's Own Non-Tax 17,061 20,224 30,381 50% 30,728 1%
Share in Central Taxes 38,731 41,665 45,053 8% 49,755 10%
Grants-in-aid from Centre 37,734 27,445 26,996 -2% 23,354 -13%
Revenue Receipts 2,43,749 2,70,515 2,72,577 1% 2,99,010 10%
Non-debt Capital Receipts 1,120 2,731 2,615 -4% 4,804 84%
Net Receipts 2,44,869 2,73,246 2,75,192 0.7% 3,03,814 10%
BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; PRS.

▪ In 2024-25, State GST is estimated to be the largest source of own tax revenue (38% share). State GST
revenue is estimated to increase by 17% over the revised estimates of 2023-24.
▪ Revenue from sales tax/ VAT in 2024-25 is expected to be Rs 69,588 crore, an increase of 12% as compared
to the revised estimates for 2023-24.

Table 6: Major sources of state’s own-tax revenue (in Rs crore)


% change from % change from
2022-23 2023-24 2023-24 2024-25
Head BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
State GST 53,823 66,967 63,338 -5% 73,788 17%
Sales Tax/ VAT 59,144 65,860 61,876 -6% 69,588 12%
Stamps Duty and Registration Fees 17,560 25,567 19,841 -22% 23,370 18%
State Excise 10,423 11,819 10,898 -8% 12,247 12%
Taxes on Vehicles 7,513 8,783 9,229 5% 11,560 25%
Taxes and Duties on Electricity 1,506 1,890 4,594 143% 4,231 -8%
Land Revenue 248 296 354 20% 370 4%
GST Compensation Grants 16,215 4,573 4,575 0.04% 0 -100%
Sources: Annual Financial Statement, Revenue Budget, Tamil Nadu Budget 2024-25; PRS.

June 28, 2024 -4-


Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Deficits, Debt, and FRBM Targets for 2024-25


The Tamil Nadu Fiscal Responsibility Act, 2003 provides annual targets to progressively reduce the outstanding
liabilities, revenue deficit, and fiscal deficit of the state government.
Revenue deficit: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies
that the government needs to borrow to finance those expenses which do not increase its assets or reduces its
liabilities. The budget estimates a revenue deficit of Rs 49,279 crore (or 1.6% of the GSDP) in 2024-25.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the
government and leads to an increase in total liabilities. In 2024-25, the fiscal deficit is estimated to be 3.4% of
GSDP. For 2024-25, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of
which 0.5% of GSDP will be available only upon carrying out certain power sector reforms.
As per the revised estimates, in 2023-24, the fiscal deficit of the state is expected to be 3.5% of GSDP. This is
higher than the budget estimate of 3.3%. Fiscal deficit is projected to be lowered to 2.9% of GSDP by 2026-27.
Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial
year, it also includes any liabilities on public account. At the end of 2024-25, the outstanding liabilities
(excluding ways and means advance, reserve funds, and deposits) are estimated to be 26.4% of GSDP, lower
than the revised estimate for 2023-24 (26.7% of GSDP).
Figure 2: Revenue and Fiscal Balance (% of GSDP) Figure 3: Outstanding Liabilities (% of GSDP)
1% 30% 26.9% 26.7% 26.4%
0.1% 25.2% 25.7% 25.8% 25.0%
0%
21.5%
-1% -0.5% 20%
-2% -1.5% -1.6% -1.6%
-1.9% -2.1%
-3%
-3.0% -2.9% 10%
-3.3%
-4% -3.3% -3.4% -3.5% -3.5% -3.4%

-5% -4.6%
0%
2025-26*

2026-27*
2019-20

2020-21

2022-23

2024-25 BE
2023-24 RE
2021-22

2025-26*

2026-27*
2019-20

2020-21

2022-23

2023-24 RE

2024-25 BE
2021-22

Revenue Deficit Fiscal Deficit


Note: *Figures for 2025-26 and 2026-27 are projections. RE is
Note: *Figures for 2025-26 and 2026-27 are projections; RE is
Revised Estimates; BE is budget estimates. Outstanding liabilities
Revised Estimates; BE is budget estimates.
exclude ways and means advance, reserve funds and deposits.
Sources: Medium Term Fiscal Policy, Tamil Nadu Budget 2024-25;
Sources: Medium Term Fiscal Policy, Tamil Nadu Budget 2024-25;
PRS.
PRS.

DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for
non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”). The
opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but
PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document
has been prepared without regard to the objectives or opinions of those who may receive it.

June 28, 2024 -5-


Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Annexure 1: Comparison of states’ expenditure on key sectors


The graphs below compare Tamil Nadu’s expenditure in 2024-25 on six key sectors as a proportion of its total
expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states
(including Tamil Nadu) as per their budget estimates of 2023-24.1
▪ Education: Tamil Nadu has allocated 13.7% of its expenditure on education in 2024-25. This is lower than
the average allocation for education by states in 2023-24 (14.7%).
▪ Health: Tamil Nadu has allocated 5% of its total expenditure towards health, which is lower than the
average allocation for health by states (6.2%).
▪ Rural development: Tamil Nadu has allocated 3% of its expenditure on rural development. This is lower
than the average allocation for rural development by states (5%).
▪ Roads and bridges: Tamil Nadu has allocated 4.9% of its expenditure towards roads and bridges. This is
higher than the average allocation towards roads and bridges by states (4.6%).
▪ Agriculture: Tamil Nadu has allocated 6.1% of its total expenditure towards agriculture, which is higher
than the average expenditure on agriculture by states (5.9%).
▪ Energy: Tamil Nadu has allocated 5.5% of its total expenditure towards energy, which is higher than the
average allocation by states (4.7%).

Spending on education as a % Spending on health as a % of Spending on rural


of total expenditure total expenditure development as a % of total
expenditure
20% 8%
6.2%
14.1% 14.1% 13.5% 13.7% 14.7% 5.5% 5.3% 5.2% 6% 5.0%
15% 6% 5.0%
4% 3.3%
10% 4% 2.7% 2.7% 3.0%

5% 2% 2%

0% 0% 0%
2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

Average of all states

2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

states (2023-24 BE)


2022-23

2023-24 (RE)

2024-25 (BE)
2023-24 (BE)

Average of all states

(2023-24 BE)

Average of all
(2023-24 BE)

Spending on roads and Spending on agriculture as a Spending on energy as a


bridges as a % of total % of total expenditure % of total budget
expenditure 7.4%
8% 8% 6.7%
6.5%
6% 4.9% 5.4% 5.1% 4.9% 4.6% 5.9% 6.1% 5.9% 7% 5.5% 5.5%
6% 6% 4.7%
4% 5%
4% 4%
3% 2.4%
2% 2% 2%
1%
0% 0% 0%
2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)
Average of all states
2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

states (2023-24 BE)

2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

Average of all states

(2023-24 BE)
Average of all

(2023-24 BE)

Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Tamil Nadu.
Sources: Annual Financial Statement, Tamil Nadu Budget 2024-25; various state budgets; PRS.

1
The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry.

June 28, 2024 -6-


Tamil Nadu Budget Analysis 2024-25 PRS Legislative Research

Annexure 2: Comparison of 2022-23 Budget Estimates and Actuals


The following tables compare the actuals of 2022-23 with budget estimates for that year.

Table 7:Overview of Receipts and Expenditure (in Rs crore)


Particular 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Net Receipts (1+2) 2,36,638 2,44,869 3%
1. Revenue Receipts (a+b+c+d) 2,31,407 2,43,749 5%
a. Own Tax Revenue 1,42,800 1,50,223 5%
b. Own Non-Tax Revenue 15,537 17,061 10%
c. Share in central taxes 33,311 38,731 16%
d. Grants-in-aid from the Centre 39,759 37,734 -5%
Of which GST compensation grants 11,972 16,215 35%
2. Non-Debt Capital Receipts 5,230 1,120 -79%
3. Borrowings 1,20,979 1,01,062 -16%
Of which GST compensation loan 6,500 0 -100%
Net Expenditure (4+5+6) 3,33,251 3,26,755 -2%
4. Revenue Expenditure 2,84,188 2,79,964 -1%
5. Capital Outlay 43,043 39,530 -8%
6. Loans and Advances 6,020 7,261 21%
7. Debt Repayment 27,128 27,104 -0.09%
Revenue Deficit 52,781 36,215 -31%
Revenue Deficit (as % of GSDP) 2.1% 1.5% -28%
Fiscal Deficit 90,114 81,886 -15%
Fiscal Deficit (as % of GSDP) 3.6% 3.5% -11%
Note: Fiscal deficit for 2022-23 BE has been adjusted for GST compensation loans.
Source: Tamil Nadu Budget Documents of various years; PRS.
Table 8: Key Components of State's Own Tax Revenue
Tax Source/Head 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Land Revenue 326 248 -24%
Taxes and Duties on Electricity 1,633 1,506 -8%
State Excise 10,589 10,423 -2%
Sales Tax/ VAT 57,203 59,144 3%
Taxes on Vehicles 7,149 7,513 5%
Stamps Duty and Registration Fees 16,323 17,560 8%
State GST 49,565 53,823 9%
Source: Tamil Nadu Budget Documents of various years; PRS.
Table 9: Allocation towards Key Sectors
Sector 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Housing 7,218 2,588 -64%
Water Supply and Sanitation 5,764 2,951 -49%
Welfare of SC, ST, OBC, and Minorities 5,559 4,378 -21%
Irrigation and Flood Control 6,785 6,297 -7%
Police 9,857 9,683 -2%
Transport 20,059 19,807 -1%
of which Roads and Bridges 17,652 15,785 -11%
Health and Family Welfare 17,733 17,621 -1%
Urban Development 10,396 10,355 -0.4%
Energy 17,433 17,642 1%
Education, Sports, Arts, and Culture 43,799 45,147 3%
Social Welfare and Nutrition 16,674 18,219 9%
Rural Development 9,562 10,527 10%
Agriculture and Allied Activities 21,363 23,648 11%
Source: Tamil Nadu Budget Documents of various years; PRS.

June 28, 2024 -7-

You might also like