TN close FY24 with a debt of Rs 7.26 trillion, to borrow Rs 1.43 trillion

CHENNAI: The Tamil Nadu government plans to borrow Rs 1,43,197.93 crore next fiscal, as per the Medium Term Fiscal Plan (MTFP) presented by the state's Finance Minister Palanivel Thiaga Rajan along with the FY24 budget.

As per the MTFP, the state government plans to borrow the amount during 2023-24 and make a repayment of Rs 51,331.79 crore.

"As a result, the outstanding debt as on March 31, 2024 will be Rs 7,26,028.83 crore. This constitutes 25.63 per cent of GSDP (gross state domestic product) in 2023-24," the MTFP said.

The total revenue receipts of the state including the central transfers estimated to be Rs 2,70,515.23 crore in Budget Estimates 2023-24 as against the Revised Estimates of Rs 2,45,659.68 crore in 2022-23.

The State's Own Tax Revenue (SOTR) for next fiscal is estimated at Rs 1,81,182.22 (Rs 1,51,870.61 crore as per revised estimates for 2022-23, said MTFP.

The State's Own Non-Tax Revenue has been estimated at Rs 20,223.51 crore in the Budget Estimates for 2023-24.

Tamil Nadu's share in central taxes is estimated at Rs 41,664.86 crore in budget estimates 2023-24 as against Rs 38,731.24 crore in the revised estimates 2022-23.

According to MTFP, the grants-in-aid from the Central government for FY24 is estimated at Rs 27,444.64 crore and the reduction is due to the stoppage of GST Compensation from June 30, 2022 onwards.

"This has resulted in a shortfall of around Rs 20,000 crore per annum. Further, from the current year onwards, funds for several centrally sponsored schemes are being directly released to the bank accounts of implementing agencies and local bodies or beneficiaries (in the case of scholarships), without being received into the Consolidated Fund of the State," the MTFP notes.

The revenue expenditure is estimated at Rs 3,08,055.68 crore for 2023-24 and the capital expenditure will be Rs 44,365.59 crore.

The revenue deficit for 2023-24 is estimated at Rs 37,540.45 crore.