The Government of Tamil Nadu unveiled the 2024–25 budget on Monday, projecting a revenue shortfall of more than Rs 49,000 crore. The government also unveiled fresh initiatives targeted at realizing the “7 grand Tamil dream,” which encompasses social justice and women’s welfare.
Last year, Thangam Thennarasu, the Finance Minister who took over from PTR Palanivel Thiagarajan, unveiled his first budget—an electronic, paperless budget.
Compared to the budget estimates of Rs 92,075 crore, the fiscal deficit in the Revised Estimates 2023–24 is projected to “marginally increase” to Rs 94,060 crore.
Due to a downward revision in the GSDP estimates, the fiscal deficit as a percentage of GSDP increased from 3.25 percent in the Budget Estimates to 3.45 percent in the Revised Estimates 2023–2024. Thennarasu announced several things in the housing, education, and infrastructure sectors.
An estimate of Rs 3,48,289 crore was made for the total revenue expenditure.
In addition to the usual rise in committed expenses for interest payments, pensions, and salary increases, more than Rs 1.46 lakh crore crore has been set aside for transfers and subsidies.
Thennarasu explained, “The primary reason for this increase is that more money was spent this year than last in order to fund the first full year of the women’s rights program, Kalaignar Magalir Urimai Thogai Thittam, which pays Rs 1000 per month.”
“The government is implementing the glide path of fiscal consolidation in accordance with the recommendations of the 15th Finance Commission, and has lowered it from 3.46 percent in 2022–2023 to 3.45 percent in 2023–2024 and 3.44 percent in 2024–2025. This was accomplished in spite of the consequences of natural disasters (floods) and after TANGEDCO received an unprecedented allocation of budgetary resources.”
According to Thennarasu, the Budget Estimates for 2024–25 projected a fiscal deficit of Rs. 1,08,690 crore, or 3.44% of the gross state product.
The Budget shows the government’s commitment to upholding responsible financial management principles while addressing a range of challenges, the speaker said.
According to the Budget Estimates 2024–25, the State’s Own Tax Revenue is expected to reach Rs. 1,95,173 crore, an increase of 14.71 percent over the Revised Estimates 2023–24.
This comprises state excise taxes of Rs. 12,247 crore, motor vehicle taxes of Rs. 11,560 crore, stamps and registration taxes of Rs. 23,370 crore, and commercial taxes of Rs. 1,43,381 crore.
The State’s Own Non-Tax Revenue has been expected to generate a total of Rs 30,728 crore in the Budget Estimates 2024–25, assuming consistent levels of collection.
The full termination of GST compensation dues in the upcoming year is the reason for the lower Grants-in-Aid in the Budget Estimates 2024–25 compared to the Revised Estimates 2023–24. The anticipated amount of grants-in-aid is Rs 23,354 crore.
The estimates set for Share in Central Taxes for the year 2024–25 are Rs. 49,755 crore, based on the allocation made in the Union Budget 2024–25.” He had earlier made several announcements pertaining to different industries.
Among them was the housing project called “Kalaignarin Kanavu Illam,” which bore the name of the late chief minister and DMK patriarch, M Karunanidhi. The plan calls for building 8 lakh concrete homes throughout the state to eradicate huts from TN by 2030. For the project, the government set aside Rs 3,500 crore.
According to the government, the budget aims to realize the “seven grand Tamil dreams.”
These included social justice, the welfare of the marginalized, educating Tamil youth to be global achievers, a knowledge-based economy, a sustainable future, and the preservation of Tamil language and culture.
Thennarasu announced, among other things, the allocation of a budget of Rs 300 crore for roads and other civic amenities for areas adjacent to city corporations.
According to him, the state’s welfare programs have significantly reduced poverty. According to the NITI Aayog, the percentage of people in Tamil Nadu living below the poverty line was only 2.2%, he concluded
