Tamil Nadu budget: Revenue deficit over Rs 49,000 crore; fiscal deficit sees increase

Chennai: The Tamil Nadu government on Monday presented the 2024-25 budget, estimating the revenue deficit at over Rs 49,000 crore and made new announcements aimed at achieving the "7 grand Tamil dream" which included social justice and women's welfare.

Thangam Thennarasu, who replaced PTR Palanivel Thiagarajan as Finance Minister last year, presented his maiden budget, a paperless, e-budget.

The fiscal deficit in Revised Estimates 2023-24 is estimated to 'marginally increase' to Rs 94,060 crore as against Rs 92,075 crore in Budget Estimates.

The fiscal deficit as a percentage of GSDP has increased from 3.25 per cent in Budget Estimates to 3.45 per cent in the Revised Estimates 2023-24, owing to a downward revision in the GSDP estimates.

Thennarasu made a number of announcements in various sectors including housing, education and infrastructure.

The total revenue expenditure was estimated at Rs 3,48,289 crore.

Besides the standard increase in committed expenditure in salaries, pensions and interest payments, the allocation for subsidies and transfers has been fixed at over Rs 1.46 lakh crore crore.

"This increase is primarily owing to an additional expenditure of Rs 5,696 crore under the Kalaignar Magalir Urimai Thogai Thittam (Women's rights scheme of Rs 1000 a month) over the previous year, to provide for its first full year of implementation," Thennarasu said.

"In aggregate, the Revenue deficit is estimated at Rs 49,279 crore in Budget Estimates 2024-25. This includes an amount of Rs 14,442 crore for loss funding to TANGEDCO. Excluding this amount, the Revenue Deficit is estimated to be Rs 34,837 crore in the coming year. It is notable that this is lesser than the revenue deficit excluding loss funding to TANGEDCO as compared to the Budget Estimates 2023-24," the FM said.

He said the Fiscal Deficit was estimated at Rs 1,08,690 crore in the Budget Estimates 2024-25, which was 3.44 per cent of the GSDP.

"In line with the recommendations of the 15th Finance Commission, the Government is following the glide path of fiscal consolidation and has reduced it from 3.46 per cent in 2022-23 to 3.45 per cent in 2023-24 to 3.44 per cent in 2024-25. This has been achieved despite the impact of disasters (floods) and after an unprecedented allocation to TANGEDCO from within the budgetary resources." "This Budget underscores the commitment of this Government to deliver on the promises made to the people, without wavering from the path of prudent fiscal management, in spite of numerous challenges," he said.

The State's Own Tax Revenue has been estimated at Rs.1,95,173 crore in the Budget Estimates 2024-25, which is a growth of 14.71 per cent over the Revised Estimates 2023-24.

This includes Rs.1,43,381 crore from commercial taxes, Rs.23,370 crore from stamps and registration, Rs.12,247 crore from state excise and Rs.11,560 crore from motor vehicle taxes.

In anticipation of sustained levels of collection from the State's Own Non-Tax Revenue, an amount of Rs 30,728 crore has been estimated in the Budget Estimates 2024-25.

"As the GST compensation dues will completely end from the coming year, there is a reduction in Grants-in-Aid in the Budget Estimates 2024-25, as compared to the Revised Estimates 2023-24. The Grants-in-Aid are estimated to be Rs 23,354 crore.

Based on the allocation made in the Union Budget 2024-25, the estimates fixed for Share in Central Taxes for the year 2024-25 are Rs.49,755 crore." Earlier, he made a number of announcements related to various sectors.

They included the "Kalaignarin Kanavu Illam," a housing scheme named after the late DMK patriarch and former Chief Minister M Karunanidhi. As per the scheme, 8 lakh concrete houses will be constructed across the state to make TN 'hut-free' by 2030. The government earmarked Rs 3,500 crore for the initiative.

"The selected beneficiaries will be provided with house sites in case they are landless and will be provided with funds for constructing the house directly into their bank accounts," the minister announced.

The government said the Budget was aimed achieving the "7 grand Tamil dream".

These were social justice, welfare of the marginalised, transforming Tamil youth as global achievers, knowledge-based economy, sustainable future and Tamil language and culture, according to the government.

Among others, Thennarasu announced allocating Rs 300 crore in budget for civic amenities including roads for areas nearby city corporations.

He said the state has made very significant progress in poverty reduction through its welfare schemes.

The NITI Aayog has said that people below poverty line in Tamil Nadu was only about 2.2 per cent, he added.