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Tamil Nadu State Budget 2023-24 Analysis

Revised Estimate

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Tamil Nadu FY 2023-24

Tamil Nadu State Budget 2023-24 Budget at a Glance

Total Receipts

Rs 2.68 lakh crore

+3.1%

Total Expenditure

Rs 3.5 lakh crore

+8.4%

Fiscal Deficit

3.0%

Rs 82,000 crore

Capital Expenditure

Rs 45,000 crore

0.0%

Tax Revenue

Rs 1.35 lakh crore

-20.6%

Interest Payments

Rs 40,000 crore

11% of expenditure

Tamil Nadu Revenue Receipts 2023-24

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1.35 lakh crore (90.6%)
Non-Tax Revenue
Rs 14,000 crore (9.4%)

Tamil Nadu Expenditure Breakdown 2023-24

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 87.1%
Capital Expenditure 12.9%

Top 10 Departments by Allocation

Fiscal Deficit as % of GSDP โ€” Tamil Nadu 2023-24

The fiscal deficit for Tamil Nadu in 2023-24 is 3.0% of GSDP (Rs 82,000 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 40,000 crore consume 11.4% of total expenditure.

Tamil Nadu State Budget 2023-24 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 3.5 lakh crore100%
1. Revenue ReceiptsRs 2.68 lakh crore76.6%
a. Own Tax RevenueRs 1.35 lakh crore38.6%
b. Non-Tax RevenueRs 14,000 crore4.0%
B. Total ExpenditureRs 3.5 lakh crore100%
1. Revenue ExpenditureRs 3.05 lakh crore87.1%
2. Capital ExpenditureRs 45,000 crore12.9%
of which: Interest PaymentsRs 40,000 crore11.4%
C. Fiscal DeficitRs 82,000 crore3.0% of GSDP

Source: Tamil Nadu State Budget Documents via PRS India. All figures in Indian Rupees.

Tamil Nadu Department-wise Expenditure 2023-24

Top departments by allocation in Tamil Nadu for 2023-24

Department โ†•Total โ†“Share
1. Education
Rs 41,500 crore
11.9%
2. Health & Family Welfare
Rs 23,000 crore
6.6%
3. Rural Development
Rs 22,000 crore
6.3%
4. Agriculture & Allied
Rs 17,000 crore
4.9%
5. Transport & Roads
Rs 15,000 crore
4.3%
6. Urban Development
Rs 15,000 crore
4.3%
7. Water Supply & Sanitation
Rs 13,000 crore
3.7%
8. Energy
Rs 12,500 crore
3.6%
9. Police & Home
Rs 11,700 crore
3.3%
10. Social Welfare
Rs 11,200 crore
3.2%

Tamil Nadu Budget 2023-24 Analysis & Highlights

Key Highlights

  • Revised estimates show expenditure at Rs 2.85 lakh crore, 6% above initial budget.
  • State GST collections reached Rs 72,000 crore, growing 16% year-on-year.
  • Chennai IT corridor attracted record FDI with $5 billion in new tech investments.
  • Capital expenditure utilization at 82%, reflecting strong project execution.
  • Welfare scheme enrollment exceeded projections, adding Rs 5,000 crore to revenue expenditure.
  • Auto industry production recovered to pre-pandemic levels with 4 million vehicles produced.
  • Healthcare spending increased 15% over budget as dengue outbreak response required emergency funding.
  • Education spending at Rs 38,000 crore with 99% school enrollment rate maintained.
  • Fiscal deficit revised to 3.3% of GSDP from budgeted 2.8% due to welfare scheme costs.
  • Tirupur textile exports grew 18% to Rs 42,000 crore as global supply chains diversified from China.

Compare Tamil Nadu Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2019-202020-212021-222022-232023-24
Total Expenditureโ€”โ€”โ€”Rs 3.23 lakh croreRs 3.5 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 2.6 lakh croreRs 2.68 lakh crore
Capital Expenditureโ€”โ€”โ€”Rs 45,000 croreRs 45,000 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.9%3.0%
Own Tax Revenueโ€”โ€”โ€”Rs 1.7 lakh croreRs 1.35 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 2023-24

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.

Compare Tamil Nadu with other states

Side-by-side comparison of fiscal metrics across Indian states