Fiscal Strategy and Economic Growth

The Budget for Tamil Nadu for the financial year 2024-25, presented by Minister Thangam Thenarasu, emphasizes a strong fiscal strategy aimed at economic growth and social welfare. With a projected nominal GSDP growth of 15.89% for 2024-25, the budget outlines Tamil Nadu’s path towards becoming a trillion-dollar economy by focusing on infrastructure, welfare schemes, education, and healthcare.

Revenue and Expenditure

The total revenue receipts, including Central Transfers, are estimated at Rs.2,99,009.98 crore, marking a modest increase over the previous year. The State’s Own Tax Revenue is pegged at Rs.1,95,172.99 crore, indicating healthy growth. Meanwhile, revenue expenditure is expected to rise to Rs.3,48,288.72 crore, with significant allocations for salaries, pensions, and welfare schemes.

The budget allocates Rs.47,681.30 crore for capital expenditure, focusing on infrastructure projects like Chennai Metro Rail, water supply schemes, and road development. An emphasis on green energy, with plans to lead in renewable sources by 2030, underlines the state’s commitment to sustainable development.

A substantial part of the budget is dedicated to improving education and healthcare services. Initiatives like the Naan Mudalvan programme, expansion of Chennai Metro Rail, and the establishment of new healthcare facilities aim to boost Tamil Nadu’s social infrastructure.

The budget includes significant allocations for welfare schemes such as the Kalaignar Magalir Urimai Thogai, providing Rs.1,000 per month to women heads of households, and the Chief Minister’s Breakfast Scheme for schoolchildren, among others.

Acknowledging the challenges of disaster management and climate change, the budget proposes setting up a Tamil Nadu Endangered Species Conservation Fund and the TN-SHORE initiative for coastal restoration, highlighting the state’s proactive measures in environmental conservation.

Efforts to augment revenue include optimization of commercial taxes, with an estimated collection of Rs.1,43,381 crore, showcasing the administration’s focus on improving collection efficiency without imposing undue burden on the populace.

Despite challenges, the fiscal deficit is contained at 3.44% of GSDP, in line with fiscal consolidation goals. The state’s debt management strategy ensures sustainability, with outstanding debt expected to be within permissible limits relative to GSDP.

Modernization initiatives such as the Smart Kavalar app for enhancing police services, and the introduction of the e-procurement portal for transparency in government procurement, reflect the government’s commitment to efficient and accountable governance.

The budget outlines forward-looking initiatives like the creation of a Space Industrial and Propellant Park, fostering startups through the Global Startup Summit, and upgrading IT infrastructure, positioning Tamil Nadu on the global map of innovation and development.

The Complete Speech can be accessed at: https://cms.tn.gov.in/sites/default/files/documents/budget_speech_e_2024_2025.pdf