Tamil Nadu State Budget 2021-22 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2021-22
Tamil Nadu State Budget 2021-22 Budget at a Glance
Total Receipts
Rs 2.22 lakh crore
+32.1%
Total Expenditure
Rs 2.78 lakh crore
+17.8%
Fiscal Deficit
2.9%
Rs 55,000 crore
Capital Expenditure
Rs 38,000 crore
+35.7%
Tax Revenue
Rs 1.45 lakh crore
+42.2%
Interest Payments
Rs 31,000 crore
11% of expenditure
Tamil Nadu Revenue Receipts 2021-22
Own tax revenue vs non-tax revenue breakdown
Tamil Nadu Expenditure Breakdown 2021-22
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Tamil Nadu 2021-22
The fiscal deficit for Tamil Nadu in 2021-22 is 2.9% of GSDP (Rs 55,000 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 31,000 crore consume 11.2% of total expenditure.
Tamil Nadu State Budget 2021-22 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.58 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.22 lakh crore | 86.0% |
| a. Own Tax Revenue | Rs 1.45 lakh crore | 56.2% |
| b. Non-Tax Revenue | Rs 77,000 crore | 29.8% |
| B. Total Expenditure | Rs 2.78 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.4 lakh crore | 86.3% |
| 2. Capital Expenditure | Rs 38,000 crore | 13.7% |
| of which: Interest Payments | Rs 31,000 crore | 11.2% |
| C. Fiscal Deficit | Rs 55,000 crore | 2.9% of GSDP |
Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.
Tamil Nadu Budget 2021-22 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 2,78,000 crore in 2021-22 actuals โ up 13.5% over 2019-20 โ in the first fiscal year of the state government that took office in May 2021
- Fiscal deficit of Rs 55,000 crore, just 2.9% of GSDP of Rs 19,10,000 crore โ a dramatic outperformance of the revised budget's Rs 92,529.43 crore (4.33%) projection as revenues rebounded
- Revenue receipts surged to Rs 2,22,000 crore, up 15.6% over 2019-20's Rs 1,92,000 crore, on post-pandemic GST buoyancy and own-tax recovery
- Capital expenditure of Rs 38,000 crore rose 26.7% over 2019-20 โ the strongest capex acceleration in a decade โ against a revised-estimate capital outlay of Rs 42,180.97 crore
- A revised budget presented on 13 August 2021 by Finance Minister Palanivel Thiaga Rajan replaced the February interim budget and raised the revenue-deficit estimate from Rs 41,417.30 crore to Rs 58,692.68 crore
- A White Paper on state finances (August 2021) documented the tax-to-GSDP ratio's fall from 8.48% in 2006-07 to 5.46% in 2020-21 โ roughly Rs 65,000 crore a year in foregone revenue
- The Rs 9,370.11 crore COVID relief package โ Rs 4,000 in cash to all 2.1 crore rice cardholders plus grocery kits โ was among the year's largest state pandemic interventions
- The effective tax on petrol was cut by Rs 3 per litre from August 2021, at an estimated revenue cost of Rs 1,160 crore a year
- Free bus travel for women, persons with disabilities and third-gender persons on town buses was funded with a Rs 703 crore subsidy, alongside Rs 750 crore of diesel subsidy to transport corporations
- Power-sector subsidies โ free farm power, domestic subsidy and TANGEDCO loss takeover โ absorbed Rs 19,872.77 crore in the revised estimates
- Committed expenditure budgeted at Rs 1,33,773 crore โ salaries Rs 63,919 crore, pensions Rs 28,251 crore, interest Rs 41,603 crore โ equal to about two-thirds of budgeted revenue receipts
- The Rs 12,110 crore cooperative crop loan waiver announced in February 2021 carried into implementation through the year
- PRS projected outstanding liabilities at 27.1% of GSDP by end-2021-22, after the pandemic year's revised fiscal deficit of 4.99% (Rs 96,890 crore) in 2020-21
Compare Tamil Nadu Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.36 lakh crore | Rs 2.78 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.68 lakh crore | Rs 2.22 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 28,000 crore | Rs 38,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.6% | 2.9% |
| Own Tax Revenue | โ | โ | โ | Rs 1.02 lakh crore | Rs 1.45 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 2021-22
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