Tamil Nadu’s expectation of higher Central funds pushes up total revenue receipts

The Tamil Nadu government’s expectation of more funds from the Union government has revised upwards the estimated amount of total revenue receipts (TRR) for the current year. 

In the past three out of five years, the budget estimates for the TRR were pushed down at the time of arriving at the revised estimates. On the contrary, this time, the TRR figure is higher by ₹5,452 crore over the budget estimate’s figure. Compared to ₹3,44,575 crore provided at the time of the presentation of the budget figure earlier this year, the State government has calculated that the TRR will be ₹3,50,027 crore.

The increase in funds will be an outcome of the State government’s participation in the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB G RAM-G), according to a perusal of the revised budget documents for 2026-27. This is being reflected in the Centrally Sponsored Schemes (CSS), which will see a rise of about ₹9,790 crore. As the new rural job guarantee scheme requires a contribution of 40% by the State government, there will be an outgo of ₹5,057 crore from the State’s kitty, even as there will be an inflow of ₹7,586 crore. In addition, an amount of ₹3,461 crore is due to the State under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the precursor to VB G RAM-G. These explain the increase in the revised amount under the head of the CSS.

The White Paper, presented by the Tamilaga Vettri Kazhagam (TVK)-led regime in June, spoke of budget credibility gap and revenue receipts falling short of projections in the past. On the contrary, the maiden budget of the current regime presents a contrasting picture, at least with regard to the TRR. 

At the time of filing of this report, Additional Chief Secretary (Finance) M.A. Siddique had not responded to The Hindu’s query on the matter, though he stated that the increase in the CSS figure was due to VB G RAM-G.

However, in his Budget speech, Finance Minister N. Marie Wilson referred to various measures being taken by his government for additional resource mobilisation, as a result of which approximately ₹15,000 crore is expected. The measures include the levy of additional privilege fee on liquor manufacturers and leveraging Information Technology through ‘faceless assessment’ under the Goods and Services Tax, ‘faceless registration’ in the Registration Department, and end-to-end computerisation in monitoring mining activity.