Tamil Nadu State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2006-07
Tamil Nadu State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 37,000 crore
+17.5%
Total Expenditure
Rs 46,500 crore
+16.3%
Fiscal Deficit
2.0%
Rs 6,200 crore
Capital Expenditure
Rs 9,000 crore
+20.0%
Tax Revenue
Rs 22,200 crore
+17.5%
Interest Payments
Rs 6,100 crore
13% of expenditure
Tamil Nadu Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Tamil Nadu 2006-07
The fiscal deficit for Tamil Nadu in 2006-07 is 2.0% of GSDP (Rs 6,200 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Tamil Nadu is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 6,100 crore consume 13.1% of total expenditure.
Tamil Nadu State Budget 2006-07 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 44,500 crore | 100% |
| 1. Revenue Receipts | Rs 37,000 crore | 83.1% |
| a. Own Tax Revenue | Rs 22,200 crore | 49.9% |
| b. Non-Tax Revenue | Rs 5,920 crore | 13.3% |
| B. Total Expenditure | Rs 46,500 crore | 100% |
| 1. Revenue Expenditure | Rs 37,500 crore | 80.6% |
| 2. Capital Expenditure | Rs 9,000 crore | 19.4% |
| of which: Interest Payments | Rs 6,100 crore | 13.1% |
| C. Fiscal Deficit | Rs 6,200 crore | 2.0% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2006-07 Analysis & Highlights
Key Highlights
- Tamil Nadu's GSDP crossed Rs 3.3 lakh crore with 11% nominal growth driven by automotive and IT simultaneous expansion.
- Revenue receipts reached Rs 32,000 crore as state VAT collections exceeded projections by 10%.
- Renault-Nissan confirmed Rs 4,500 crore investment for a manufacturing plant at Oragadam.
- Capital expenditure of Rs 7,000 crore targeted industrial infrastructure, irrigation, and tsunami reconstruction completion.
- Fiscal deficit at 2.8% of GSDP â the best fiscal position in over a decade.
- Chennai auto corridor surpassed 700,000 vehicles annually, with exports constituting 25% of production.
- IT exports from Chennai crossed Rs 22,000 crore as TCS, Cognizant, and Infosys expanded OMR campuses.
- Tirupur textile exports hit Rs 16,000 crore but faced environmental challenges from dyeing unit effluent pollution.
- Karunanidhi's free color television scheme distributed 20 lakh sets at Rs 4,000 crore cost â politically potent but fiscally debated.
- Tsunami reconstruction largely completed with 50,000 permanent houses built in coastal districts.
- Chennai port modernization plan launched with Rs 2,000 crore for container terminal expansion.
- State attracted Rs 40,000 crore in industrial investment commitments during Global Investors Meet.
- Leather exports from North Tamil Nadu crossed Rs 7,000 crore with the region processing 70% of India's finished leather goods.
Compare Tamil Nadu Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 40,000 crore | Rs 46,500 crore |
| Revenue Receipts | â | â | â | Rs 31,500 crore | Rs 37,000 crore |
| Capital Expenditure | â | â | â | Rs 7,500 crore | Rs 9,000 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 2.0% | 2.0% |
| Own Tax Revenue | â | â | â | Rs 18,900 crore | Rs 22,200 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Tamil Nadu State Budget 2006-07
The Tamil Nadu state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Tamil Nadu Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Tamil Nadu with other states
Side-by-side comparison of fiscal metrics across Indian states