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Thangam Thennarasu, who changed PTR Palanivel Thiagarajan because the state’s Finance Minister final 12 months, introduced his maiden paperless, e-budget which he mentioned was aimed toward reaching the ‘Tamil dream’ by means of seven aims – social justice, welfare of the marginalized, remodeling younger Tamils as international achievers, information primarily based financial system, equality targeted on welfare of girls, sustainable inexperienced future and Tamil language and tradition.
“The income expenditure is estimated at Rs. 3,48,288.72 crore in Funds Estimates 2024-25 which reveals a rise of 9.70 per cent over revised estimates for 2023-24,” he mentioned. “The income expenditure is estimated to be Rs. 3,59,949.99 crore in 2025-26 and Rs. 3,89,005.49 crore in 2026-27.”
In his speech, the state’s FM hit out on the Centre when he mentioned that the Union authorities was stifling the state by exercising arbitrary and discriminatory management over Tamil Nadu’s funds.
“The imposition of stringent circumstances on the borrowing ceiling by the Union Authorities has unduly restricted the flexibility of the State to lift sources to fund its improvement initiatives,” he mentioned.
Additional, he added that the ‘inordinate delay’ by the Union Authorities in approving the Chennai Metro Rail Undertaking has pressured Tamil Nadu to incur the whole venture expenditure so removed from its budgetary sources, leading to an expenditure of Rs 9,000 crore within the present 12 months.”Additional, the termination of GST compensation regime since 30.06.2022 has prompted a income shortfall of roughly Rs 20,000 crore each year. Beneath these difficult circumstances, the Funds for the 12 months 2023-24 had been introduced in March final 12 months,” he defined.Thennarasu added that through the present 12 months, this example was additional aggravated by the onslaught of dual disasters, which prompted a extreme pressure on the state funds.
“Whereas unanticipated expenditure to offer crucial money reduction help and to undertake non permanent and everlasting restoration works has been incurred, there has additionally been a big dip within the income collections,” he mentioned. “Regardless of a number of requests, the Union Authorities has not supplied any assist to the State from the Nationwide Catastrophe Response Fund.”
As per the Funds, Tamil Nadu’s fiscal deficit is estimated at Rs 1,08,690 crore for 2024-25, which is 3.44 per cent of the GSDP. According to the suggestions of the fifteenth Finance Fee, the FM mentioned the Authorities is following the ‘glide path’ of fiscal consolidation and has lowered it from 3.46 per cent in 2022-23 to three.45 per cent in 2023-24 to three.44 per cent in 2024-25.
The fiscal glide path represents the route taken by the Finance Ministry and the federal government to fulfill their self-set fiscal targets, essential to forestall antagonistic results of uncontrolled finances deficits on long-term financial progress.
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