Tamil Nadu raises revenue estimates, anticipates higher central funds

The Tamil Nadu government has raised its total revenue receipts (TRR) estimate for the current fiscal year, anticipating increased funds from the Union government. The revised TRR now stands at ₹3,50,027 crore, an increase of ₹5,452 crore over the original budget estimate of ₹3,44,575 crore. This marks a departure from previous years, where revised estimates often fell short of initial projections.

Boost from New Rural Job Scheme

The upward revision is largely attributed to the State’s participation in the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB G RAM-G), a newly launched rural employment scheme. Tamil Nadu is set to receive ₹7,586 crore under this Centrally Sponsored Scheme (CSS), though it will also bear a 40% contribution amounting to ₹5,057 crore. Additionally, the State is owed ₹3,461 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which VB G RAM-G replaces. Together, these factors explain the ₹9,790 crore rise in the CSS allocation.

Addressing Budget Credibility Gaps

This revision contrasts with past trends highlighted in a White Paper by the ruling Tamilaga Vettri Kazhagam (TVK) government, which pointed to revenue shortfalls and budget credibility gaps under previous administrations. The maiden budget of the current regime appears to have reversed this trend, at least in the case of TRR.

Additional Resource Mobilisation Measures

Finance Minister N. Marie Wilson, in his Budget speech, outlined several measures aimed at generating approximately ₹15,000 crore in additional resources. These include levying an additional privilege fee on liquor manufacturers and leveraging technology through initiatives like ‘faceless assessment’ under the Goods and Services Tax, ‘faceless registration’ in the Registration Department, and computerised monitoring of mining activities.

While the revised estimates signal optimism, the actual inflow of funds and the effectiveness of resource mobilisation efforts will be closely watched in the months ahead.

Source: The Hindu