Chennai, Feb 20 (KNN) Tamil Nadu is bracing for a significant surge in its revenue deficit, with projections indicating an increase to Rs 49,279 crore for the fiscal year 2024-25, compared to the revised estimates of Rs 44,907 crore for the preceding year.

The state government, led by Chief Minister Stalin, revealed that the revised estimate for 2023-24 also surpassed the budget estimates for the same period, initially set at Rs 37,540 crore.

Thangam Thennarasu, who took over as the state's Finance Minister last year, introduced his inaugural paperless e-budget, outlining the state's aspirations aligned with the 'Tamil dream' through seven key objectives.

These objectives encompass social justice, the welfare of marginalised communities, empowering young Tamils on a global scale, fostering a knowledge-based economy, prioritising gender equality and women's welfare, promoting a sustainable green future, and preserving Tamil language and culture.

Thennarasu elaborated on the fiscal aspects, stating, “The revenue expenditure is estimated at Rs. 3,48,288.72 crore in Budget Estimates 2024-25, which shows an increase of 9.70 percent over revised estimates for 2023-24.” He further projected revenue expenditures of Rs. 3,59,949.99 crore in 2025-26 and Rs. 3,89,005.49 crore in 2026-27.

During his speech, the state's Finance Minister criticised the central government, accusing it of imposing arbitrary and discriminatory controls over Tamil Nadu's finances. He highlighted challenges such as stringent borrowing conditions and delays in crucial projects like the Chennai Metro Rail.

Thennarasu also lamented the termination of GST compensation and the lack of support from the National Disaster Response Fund, exacerbating the state's financial strain.

Despite these obstacles, Tamil Nadu aims to maintain fiscal discipline, with the fiscal deficit estimated at Rs 1,08,690 crore for 2024-25, representing 3.44 per cent of the GSDP. The Finance Minister emphasised the government's adherence to the fiscal glide path, aligning with the recommendations of the 15th Finance Commission, to ensure sustainable economic growth and stability.

(KNN Bureau)