Tamil Nadu State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2007-08
Tamil Nadu State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 42,500 crore
+14.9%
Total Expenditure
Rs 52,500 crore
+12.9%
Fiscal Deficit
1.5%
Rs 5,400 crore
Capital Expenditure
Rs 10,500 crore
+16.7%
Tax Revenue
Rs 25,500 crore
+14.9%
Interest Payments
Rs 6,200 crore
12% of expenditure
Tamil Nadu Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Tamil Nadu 2007-08
The fiscal deficit for Tamil Nadu in 2007-08 is 1.5% of GSDP (Rs 5,400 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 6,200 crore consume 11.8% of total expenditure.
Tamil Nadu State Budget 2007-08 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 51,000 crore | 100% |
| 1. Revenue Receipts | Rs 42,500 crore | 83.3% |
| a. Own Tax Revenue | Rs 25,500 crore | 50.0% |
| b. Non-Tax Revenue | Rs 6,800 crore | 13.3% |
| B. Total Expenditure | Rs 52,500 crore | 100% |
| 1. Revenue Expenditure | Rs 42,000 crore | 80.0% |
| 2. Capital Expenditure | Rs 10,500 crore | 20.0% |
| of which: Interest Payments | Rs 6,200 crore | 11.8% |
| C. Fiscal Deficit | Rs 5,400 crore | 1.5% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2007-08 Analysis & Highlights
Key Highlights
- Tamil Nadu's GSDP crossed Rs 4 lakh crore with double-digit nominal growth sustained for the third consecutive year.
- Revenue receipts surged to Rs 38,000 crore with VAT collections growing 19%.
- Chennai auto corridor approached 900,000 vehicles as Renault-Nissan entered trial production at Oragadam.
- Capital expenditure reached Rs 8,500 crore â the highest in Tamil Nadu's history to that date.
- Fiscal deficit at 2.5% of GSDP represented continued improvement despite elevated welfare spending.
- IT exports from Chennai crossed Rs 28,000 crore, with the technology workforce reaching 400,000.
- Daimler Trucks established its largest overseas R&D center in Chennai.
- Tirupur textile exports reached Rs 18,000 crore despite Madras High Court ordering closure of 700 polluting dyeing units.
- Karunanidhi launched Kalaignar Veedu housing scheme targeting 6 lakh houses for BPL families.
- State industrial policy offered 30% capital subsidy for investments in backward southern districts.
- Leather goods exports grew 15% to Rs 8,500 crore as Italian luxury brands increased Tamil Nadu sourcing.
- Power deficit narrowed to 10% as private thermal plants at Tuticorin and Cuddalore came online.
- Per-capita income crossed Rs 40,000, confirming Tamil Nadu's lead among large southern states.
Compare Tamil Nadu Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 46,500 crore | Rs 52,500 crore |
| Revenue Receipts | â | â | â | Rs 37,000 crore | Rs 42,500 crore |
| Capital Expenditure | â | â | â | Rs 9,000 crore | Rs 10,500 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 2.0% | 1.5% |
| Own Tax Revenue | â | â | â | Rs 22,200 crore | Rs 25,500 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Tamil Nadu State Budget 2007-08
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