Tamil Nadu State Budget 2009-10 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2009-10
Tamil Nadu State Budget 2009-10 Budget at a Glance
Total Receipts
Rs 58,000 crore
+20.8%
Total Expenditure
Rs 78,000 crore
+22.8%
Fiscal Deficit
3.3%
Rs 17,490 crore
Capital Expenditure
Rs 16,000 crore
+28.0%
Tax Revenue
Rs 34,800 crore
+20.8%
Interest Payments
Rs 8,490 crore
11% of expenditure
Tamil Nadu Revenue Receipts 2009-10
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2009-10
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Tamil Nadu 2009-10
The fiscal deficit for Tamil Nadu in 2009-10 is 3.3% of GSDP (Rs 17,490 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 8,490 crore consume 10.9% of total expenditure.
Tamil Nadu State Budget 2009-10 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 69,000 crore | 100% |
| 1. Revenue Receipts | Rs 58,000 crore | 84.1% |
| a. Own Tax Revenue | Rs 34,800 crore | 50.4% |
| b. Non-Tax Revenue | Rs 9,280 crore | 13.4% |
| B. Total Expenditure | Rs 78,000 crore | 100% |
| 1. Revenue Expenditure | Rs 62,000 crore | 79.5% |
| 2. Capital Expenditure | Rs 16,000 crore | 20.5% |
| of which: Interest Payments | Rs 8,490 crore | 10.9% |
| C. Fiscal Deficit | Rs 17,490 crore | 3.3% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2009-10 Analysis & Highlights
Key Highlights
- Global financial crisis hit Chennai auto corridor with 20% production decline.
- State VAT collections grew only 4% to Rs 18,000 crore amid manufacturing slowdown.
- IT sector in Chennai faced hiring freeze; export growth halted at $5 billion.
- Fiscal deficit at 3.0% of GSDP as revenues fell and welfare spending continued.
- DMK government maintained welfare programs despite fiscal pressure.
- Agriculture contracted 2% following poor northeast monsoon in Cauvery delta.
- Auto industry shed 50,000 temporary workers during the downturn.
- Capital expenditure fell to Rs 9,000 crore as fiscal space compressed.
- Tirupur textile exports declined 12% as global retail demand collapsed.
- Per-capita income at Rs 62,000 despite economic slowdown.
Compare Tamil Nadu Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 63,500 crore | Rs 78,000 crore |
| Revenue Receipts | â | â | â | Rs 48,000 crore | Rs 58,000 crore |
| Capital Expenditure | â | â | â | Rs 12,500 crore | Rs 16,000 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 3.0% | 3.3% |
| Own Tax Revenue | â | â | â | Rs 28,800 crore | Rs 34,800 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Tamil Nadu State Budget 2009-10
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