Tamil Nadu State Budget 2018-19 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2018-19
Tamil Nadu State Budget 2018-19 Budget at a Glance
Total Receipts
Rs 1.88 lakh crore
+11.9%
Total Expenditure
Rs 2.33 lakh crore
+12.0%
Fiscal Deficit
2.6%
Rs 42,000 crore
Capital Expenditure
Rs 31,000 crore
+10.7%
Tax Revenue
Rs 1.21 lakh crore
+12.0%
Interest Payments
Rs 23,500 crore
10% of expenditure
Tamil Nadu Revenue Receipts 2018-19
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2018-19
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Tamil Nadu 2018-19
The fiscal deficit for Tamil Nadu in 2018-19 is 2.6% of GSDP (Rs 42,000 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 23,500 crore consume 10.1% of total expenditure.
Tamil Nadu State Budget 2018-19 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.17 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.88 lakh crore | 86.6% |
| a. Own Tax Revenue | Rs 1.21 lakh crore | 55.8% |
| b. Non-Tax Revenue | Rs 67,000 crore | 30.9% |
| B. Total Expenditure | Rs 2.33 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.02 lakh crore | 86.7% |
| 2. Capital Expenditure | Rs 31,000 crore | 13.3% |
| of which: Interest Payments | Rs 23,500 crore | 10.1% |
| C. Fiscal Deficit | Rs 42,000 crore | 2.6% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2018-19 Analysis & Highlights
Key Highlights
- AIADMK government under Edappadi K. Palaniswami continued welfare programs amid political uncertainty.
- Total expenditure at Rs 2.05 lakh crore with education and health as top priorities.
- State GST collections stabilized at Rs 48,000 crore after initial implementation year disruption.
- Chennai auto industry produced 4.2 million vehicles โ highest annual production in corridor history.
- Fiscal deficit at 2.5% of GSDP maintaining moderate discipline.
- Amma schemes (canteen, pharmacy, cement, water) continued at Rs 5,000 crore combined cost.
- Healthcare spending at Rs 15,000 crore โ per-capita health expenditure highest among large states.
- IT exports from Tamil Nadu at $18 billion, growing 12% year-on-year.
- Tirupur textile exports at Rs 28,000 crore as global demand for Indian knitwear strengthened.
- Capital expenditure at Rs 32,000 crore for highway construction and Chennai Metro Phase 1.
- Per-capita income at Rs 1.9 lakh, the highest among large states outside Delhi and Goa.
Compare Tamil Nadu Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.08 lakh crore | Rs 2.33 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.68 lakh crore | Rs 1.88 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 28,000 crore | Rs 31,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.7% | 2.6% |
| Own Tax Revenue | โ | โ | โ | Rs 1.08 lakh crore | Rs 1.21 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 2018-19
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