Tamil Nadu State Budget 2017-18 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2017-18
Tamil Nadu State Budget 2017-18 Budget at a Glance
Total Receipts
Rs 1.68 lakh crore
+12.0%
Total Expenditure
Rs 2.08 lakh crore
+11.8%
Fiscal Deficit
2.7%
Rs 38,000 crore
Capital Expenditure
Rs 28,000 crore
+16.7%
Tax Revenue
Rs 1.08 lakh crore
+12.5%
Interest Payments
Rs 20,500 crore
10% of expenditure
Tamil Nadu Revenue Receipts 2017-18
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2017-18
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Tamil Nadu 2017-18
The fiscal deficit for Tamil Nadu in 2017-18 is 2.7% of GSDP (Rs 38,000 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 20,500 crore consume 9.9% of total expenditure.
Tamil Nadu State Budget 2017-18 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.94 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.68 lakh crore | 86.6% |
| a. Own Tax Revenue | Rs 1.08 lakh crore | 55.7% |
| b. Non-Tax Revenue | Rs 60,000 crore | 30.9% |
| B. Total Expenditure | Rs 2.08 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.8 lakh crore | 86.5% |
| 2. Capital Expenditure | Rs 28,000 crore | 13.5% |
| of which: Interest Payments | Rs 20,500 crore | 9.9% |
| C. Fiscal Deficit | Rs 38,000 crore | 2.7% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2017-18 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 2,08,000 crore in 2017-18 actuals โ crossing the Rs 2 lakh crore mark for the first time, up 11.8% year-on-year
- Fiscal deficit of Rs 38,000 crore, or 2.7% of GSDP of Rs 14,30,000 crore โ beating the budgeted Rs 41,977 crore (2.79%) and returning within FRBM norms after the UDAY-inflated 2016-17
- Revenue receipts of Rs 1,68,000 crore outperformed the Rs 1,59,363 crore budget estimate in the first year of GST, aided by assured five-year compensation on a 2015-16 base
- Capital expenditure of Rs 28,000 crore, up 16.7% year-on-year and almost exactly on the Rs 27,789 crore budget estimate
- The budget openly projected a revenue deficit of Rs 15,930 crore, confirming the structural gap opened by the loan waiver, free power and UDAY interest costs
- Outstanding debt was projected at Rs 3,14,366 crore by 31 March 2018 โ 20.90% of GSDP including the absorbed TANGEDCO debt โ with interest consuming 16.30% of revenue receipts
- Subsidies and grants absorbed Rs 72,616 crore in the budget estimates, including Rs 5,500 crore of food subsidy and Rs 8,538 crore of power subsidy within a Rs 16,998 crore energy allocation
- School education was allocated Rs 26,932 crore, higher education Rs 3,680 crore, and the health department Rs 10,158 crore
- GST launched on 1 July 2017 โ the biggest indirect-tax transition for a manufacturing state, replacing the commercial-tax regime that was Tamil Nadu's largest revenue source
- A committee of officials on Seventh Pay Commission-linked pay revision was constituted; pension provisioning alone stood at Rs 20,577 crore before the revision's impact
- Chennai Metro expanded: the 9-km Washermanpet-Wimco Nagar extension progressed at Rs 3,770 crore, with the 107.5-km Phase-II entering the JICA funding pipeline
- The 2015 Global Investors Meet's Rs 2.42 lakh crore of MoUs moved to implementation, and Rs 75 crore was provided for a second GIM
- Drought carry-over from 2016-17 kept relief spending live, including the Rs 615 crore sanction and a 50% jump in MGNREGS person-days eligibility to 150 days
Compare Tamil Nadu Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.86 lakh crore | Rs 2.08 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.5 lakh crore | Rs 1.68 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 24,000 crore | Rs 28,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.8% | 2.7% |
| Own Tax Revenue | โ | โ | โ | Rs 96,000 crore | Rs 1.08 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Tamil Nadu State Budget 2017-18
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