Chennai: Presenting the Tamil Nadu Budget in the Assembly, Finance Minister Maria Wilson said the state’s financial position would need at least two years to return to a stable path. She outlined key estimates for 2026-27, including total revenue of ₹3,50,027 crore and a revenue deficit of ₹55,775 crore.
The Budget, the first for the government led by Chief Minister Vijay after it assumed office on May 10, also projected the state’s own tax revenue to grow by 9.78%. Total tax revenue was estimated at ₹2,54,575 crore, while central grants were pegged at ₹24,762 crore for the year.
On employment schemes, the minister said Tamil Nadu expects ₹7,586 crore as the Centre’s 60% share under the newly introduced “Viksit Bharat” rural job assurance and livelihood programme. She also said the Centre is yet to release ₹3,461 crore in pending dues related to the earlier national rural employment scheme, and that total grants-in-aid from the Centre are estimated at ₹32,922 crore in the current budget.
Wilson said the interim budget had placed the revenue deficit at ₹48,696 crore, but this was understated due to overestimation of receipts and underestimation of revenue expenditure. In revised estimates, the deficit is now projected at ₹55,775 crore, while the state’s outstanding debt stands at ₹10,98,768 crore, including ₹9,523 crore borrowed for Chennai Metro Rail Phase II.
She said the government has begun plugging leakages on both the revenue and expenditure sides, claiming ₹1,500 crore has already been generated through such efforts. The government expects savings by reducing wasteful spending in procurement and contracts, and said its initiatives could help mobilise an additional ₹15,000 crore, which it believes will help reduce deficits and enable higher capital spending in the coming years.
