Tamil Nadu State Budget 2019-20 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2019-20
Tamil Nadu State Budget 2019-20 Budget at a Glance
Total Receipts
Rs 1.92 lakh crore
+2.1%
Total Expenditure
Rs 2.45 lakh crore
+5.2%
Fiscal Deficit
3.1%
Rs 52,000 crore
Capital Expenditure
Rs 30,000 crore
-3.2%
Tax Revenue
Rs 1.22 lakh crore
+0.8%
Interest Payments
Rs 26,000 crore
11% of expenditure
Tamil Nadu Revenue Receipts 2019-20
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2019-20
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Tamil Nadu 2019-20
The fiscal deficit for Tamil Nadu in 2019-20 is 3.1% of GSDP (Rs 52,000 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 26,000 crore consume 10.6% of total expenditure.
Tamil Nadu State Budget 2019-20 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.2 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.92 lakh crore | 87.3% |
| a. Own Tax Revenue | Rs 1.22 lakh crore | 55.5% |
| b. Non-Tax Revenue | Rs 70,000 crore | 31.8% |
| B. Total Expenditure | Rs 2.45 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.15 lakh crore | 87.8% |
| 2. Capital Expenditure | Rs 30,000 crore | 12.2% |
| of which: Interest Payments | Rs 26,000 crore | 10.6% |
| C. Fiscal Deficit | Rs 52,000 crore | 3.1% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2019-20 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 2,45,000 crore in 2019-20 actuals fell well short of the Rs 2,64,556 crore budget estimate as the slowdown, and then COVID-19's March 2020 arrival, forced compression
- Fiscal deficit widened to Rs 52,000 crore โ 3.1% of GSDP of Rs 16,88,000 crore โ breaching the 3% FRBM ceiling against a budgeted 2.56% (Rs 44,176 crore)
- Revenue receipts of Rs 1,92,000 crore landed almost exactly on the revised estimate of Rs 1,91,861 crore, but 3% below the Rs 1,97,721 crore originally budgeted
- Capital outlay of Rs 30,000 crore tracked the budgeted Rs 31,251 crore, but grew just 7% over two years โ near-stagnation in real terms
- The budget presented on 8 February 2019 had targeted a revenue deficit of Rs 14,315 crore (0.83% of GSDP), down from 1.21% the previous year โ a consolidation the slowdown erased
- GST-linked revenues were budgeted at Rs 64,023 crore โ 32% of receipts โ with SGST at Rs 48,157 crore assuming 16.4% growth; GST compensation reached Rs 9,000 crore in the revised estimates, 61% above budget
- Committed expenditure of Rs 1,20,256 crore on salaries, pensions and interest consumed over 60% of revenue receipts, with total debt servicing of Rs 50,052 crore taking 19% of the budget
- Education was allocated Rs 35,777 crore โ Rs 28,758 crore for schools โ while health received Rs 12,398 crore including Rs 1,363 crore for insurance cover
- Agriculture's Rs 15,247 crore allocation included Rs 4,302 crore for free farm power; energy received Rs 9,771 crore, of which Rs 4,563 crore serviced UDAY-legacy TANGEDCO debt
- Transport allocation jumped 21% to Rs 12,223 crore, backing a Rs 5,890 crore programme to procure 12,000 BS-VI and 2,000 electric buses
- Urban housing got Rs 4,648 crore for 38,000 tenements, and a new accident life insurance scheme was seeded with a Rs 250 crore premium provision
- Outstanding liabilities stood at about 23% of GSDP per PRS analysis of the budget โ above the 20% benchmark recommended by the FRBM Review Committee
- The final week of the fiscal year brought the nationwide COVID-19 lockdown from 24 March 2020, foreclosing year-end collections and setting up 2020-21's revenue collapse
Compare Tamil Nadu Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.33 lakh crore | Rs 2.45 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.88 lakh crore | Rs 1.92 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 31,000 crore | Rs 30,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.6% | 3.1% |
| Own Tax Revenue | โ | โ | โ | Rs 1.21 lakh crore | Rs 1.22 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 2019-20
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.
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Compare Tamil Nadu with other states
Side-by-side comparison of fiscal metrics across Indian states