Tamil Nadu Finance Minister Thangam Thennarasu presented the State budget for the fiscal 2025-26 in the State legislature today. Establishing a ‘Global city’ near Chennai, improving transport infrastructure, a focus on archaeological excavations, rural housing and more were announced as part of the budget.
The budget has a total disbursement outlay of ₹4,39,293 crores, excluding public debt, with total receipts being ₹3,32,330 crores. Here is a look at where the money comes from, and where it is to be spent.
Gross State Domestic Product
For 2025-26, Gross State Domestic Product (GSDP) is estimated to be ₹35,67,818 crores. The GSDP is estimated to grow 14.5% in 2025-26, marginally up from the 14.49% growth rate registered in the revised estimates of 2024-25.
Fiscal Deficit
Fiscal deficit is estimated at ₹1,06,963 crores for 2025-26, highest since 2021-22. However, fiscal deficit as a percentage of GSDP is expected to fall to 3% in 2025-26, from 3.26% in 2024-25. Fiscal deficit is the difference between total receipts and total expenditures laid out in the budget.
Revenue deficit
Revenue expenditure for 2025-26 was estimated to be ₹3,31,568 crores, and revenue expenditure ₹3,73,203 crores. This puts the revenue deficit at ₹41,635 crores, or 1.17% of the Gross State Domestic Product.
Revenue expenditure is money spent on salaries, operation and maintenance, subsidies and grants, pensions and retirement benefits and interest payments. Revenue receipts is the money the State gets from taxes and non-tax revenue sources, grants-in-aid from the Centre and its share in Central taxes.
Major allocations
Among major sectoral allocations, ₹55,261 crores were allocated to education, followed by Urban Development and Rural Development.
A scheme to provide high-tech devices to 20 lakh college students in two years was announced for ₹2,000 crores. Schemes for reconstruction of dilapidated tenements (₹1,051 crores), climate resilient sponge parks (₹88 crores), and riverside development works (₹400 crores) were among some key schemes under urban development.
Published – March 14, 2025 04:19 pm IST
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