On March 20, 2023, the Finance Minister of Tamil Nadu (TN) Palanivel Thiaga Rajan presented the TN state budget for 2023-2024-(FY24). he stated that due to the reform initiatives in TN, the annual revenue deficit is reduced from about Rs 62,000 crore to Rs 30,000 crore in Revised Estimates of FY23.
i.The revenue expenditure is estimated at Rs 3,08,055.68 crore for FY24 and the capital expenditure will be Rs 44,365.59 crore.
ii.The revenue deficit for 2023-24 is estimated at Rs 37,540.45 crore.
iii.Fiscal deficit for FY24 is estimated at Rs 92,075 crore, which is 3.25% of the Gross State Domestic Product (GSDP) and within the XV Finance Commission limit of 3.5% of GSDP.
iv.The nominal growth assumed for FY24 is too optimistic at 14% , which has resulted in the State’s own tax revenue (SOTR) growth being budgeted at 19%.
- SOTR for FY24 is estimated at Rs 1,81,182.22 crore.
v.The TN government plans to borrow Rs 1,43,197.93 crore in FY24, as per the Medium Term Fiscal Plan (MTFP) and make a repayment of Rs 51,331.79 crore.
vi.In the year 2023-24, the Net Borrowings are projected at Rs.91,866.14 crore, including Rs.82,625.96 crore of Net Open Market Borrowings and
Rs.9,240.18 crore from other sources. The outstanding debt as on March 31, 2024 will be Rs 7,26,028.83 crore and the Debt-GSDP ratio will be 25.63 %. this is well within the 29.1 % for 2023-24 limit set by the 15th Finance Commission.
vii.The Total Revenue Receipts are projected to be Rs.2,45,659.67 crore in the Revised Estimates, which is 6.16 % higher than the Rs.2,31,407.28 crore estimated in Budget Estimates 2022-23. for 2023-24, the Total Revenue Receipts are projected at Rs.2,70,515.23 crore, which is 10.12% higher than the Revised Estimates.
viii.TN 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.
ix.The Grants-in-Aid from the Union Government is estimated at
Rs.27,444.64 crore which includes Rs.4,572.82 crore that is expected as arrears in GST Compensation in 2023-24.
Allocations and Proposals for FY24:
Tamil Development and Culture
i.Rs 5 crore allocated to translate Dr BR (Bhimrao Ramji) Ambedkar’s works into Tamil
ii.An “International Conference on Tamil Computing‟ will be held with the participation of renowned experts from across the world to promote the growth of Tamil as a global language by promoting its usage in the technology sector.
School Education and Higher Education:
i.Rs.40,299 crore has been allocated towards School Education Department
ii.Rs 1,500 crore assigned for constructing classrooms, laboratories and toilets in schools.
iiiAn iconic eight-storeyed library in 2 lakh square feet, with all modern amenties is being constructed in Madurai, the seat of Tamil Sangam. This library will be named “Kalaignar Centenary Library” to mark the centenary celebrations of Muthamizharignar Kalaignar.
iv.The TN government had launched the “Perasiriyar Anbazhagan School Development Scheme” to modernize and upgrade physical infrastructure at an outlay of Rs.7,000 crore over a period of five years. During the current year, works to the tune of Rs.2,000 crore have been taken up. In the
upcoming financial year, the Government will construct classrooms, laboratories and toilets at a cost of Rs.1,500 crore.
v.Tamil Nadu Skill Development Corporation (TNSDC)will implement a scheme to provide civil services aspirants with better facilities and materials. For this programme, an amount of Rs 10 crore has been allocated to TNSDC in the Budget Estimates FY24.
- Every year 1,000 civil services aspirants will be short-listed through a screening test. Each aspirant will be provided Rs 7,500 per month for 10 months to prepare for the preliminary examination. Those students who clear the preliminary examination will be provided a lumpsum amount of Rs 25,000.
i.Under the “Tourism Destination Development Scheme”, Rs.75 crore has been sanctioned for infrastructure development at various tourist locations across the State.
ii.Projects to upgrade amenities at Pitchavaram, Poompuhar and Hogenakkal have been sanctioned at an estimated cost of Rs.55 crore.
Youth Welfare and Sports
It is proposed to set up a State-of-the-art hi tech Global Sports City by Chennai Metropolitan Development Authority (CMDA) in Chennai to promote the development of sports and emerge as a favoured destination for leading sports events.
Adi-Dravidar and Tribal Welfare
i.An allocation of Rs 100 crore for ‘Annal Ambedkar Business Champions Scheme’ providing 35% capital subsidy and offer 6% interest subvention for loans to procure machineries and equipment for SC (Scheduled Caste), ST (Scheduled Tribes) entrepreneurs.
ii.An allocation of Rs 1000 crores for a new scheme called ‘Iyothee Thass Pandithar Habitation Development Scheme’ to ensure basic amenities in Adi Dravidar habitations in both urban and rural areas for a comprehensive socio-economic development over a period of five years.
Women & Children empowerment:
i.Rs 7,000 crore allocated for providing Rs 1,000 monthly assistance to female heads of households.
- It will be rolled out on September 15, 2023 i.e. the birth anniversary of DMK founder and former chief minister C N Annadurai (Conjeevaram Natarajan Annadurai).
ii.Chief Minister’s Breakfast Scheme, launched in 2022, will be expanded to cover all the 30,122 Government primary schools in the State from the coming
academic year. Rs.500 crore is allotted for this scheme in this Budget which will benefit 18 lakh students studying from Class I to Class V.
iii.An estimated allocation of Rs 2,800 crore is made as subsidies for free bus travel for women, Rs 1,500 crore for student concession in bus fares, and Rs 2,000 crore as diesel subsidy.
i.A substantial allocation of Rs 19,465 crore is made for the Highways and Minor Ports Department.
ii.Rs 9,000 crore allocated for metro rail services in Coimbatore, and Rs 8,500 crore in Madurai.
iii.Rs 500 crore is allocated for the procurement of 1,000 new buses and for refurbishing another 500 buses.
iv.Rs 2,000 crore to lay rural roads covering more than 5,140 km in FY24.
v.Rs 621 crore to develop four-lane elevated flyover on Anna Salai from Teynampet to Saidapet.
The total number of beneficiaries availing social security pensions will be increased to 35.8 lakhs. A sum of Rs.5,346 crore has been allocated for social security pensions.
i.To improve the quality of living in the resettlement habitations constructed by Tamil Nadu Urban Habitat Development Board, sports cum recreation centres will be developed in Kannagi Nagar, Perumbakkam, Navalur and Athipattu at a cost of Rs.20 crore.
ii.The Government will implement the “Vada Chennai Valarchi Thittam‟
at a cost of Rs.1,000 crore over the next three years.
- The scheme will be implemented by converging the funds of Chennai Metropolitan Development Agency with the ongoing schemes.
iii.As part of TN’s endeavour to realize the goal of Singara Chennai, the state government is committed to clean and restore waterways including the Adyar and Cooum in Chennai.
- As the first phase of these initiatives, the restoration of Adyar river for a length of 44 km will be taken up at an estimated cost of Rs 1,500 crore through the public-private partnership (PPP) mode.
The project will include river cleaning activities such as prevention of sewage from entering the river and construction of Sewage Treatment Plants (STPs), along with recreational facilities such as aesthetic parks, green walkways, an open air gymnasium and a cafeteria.
i.Two factories to manufacture non-leather footwear will be set up at Ranipet and Kallakurichi providing employment for 32,000 women.
ii.Rs 77,000 crore allotted for developing a mega power projects to generate 14,500 MW of power by 2030.
iii.Rs 14,000 crore allocated towards subsidy for TANGEDCO (Tamil Nadu Generation and Distribution Corporation Limited).
Setting up of TN’s 18th Wildlife Sanctuary:
A new wildlife sanctuary called the ‘Thanthai Periyar Wildlife Sanctuary’ spread across 80,567 hectares in the forest areas of Anthiyur and Gobichettipalayam will be developed in Erode district. This will be the 18th wildlife sanctuary in the State and will link the Nilgiris Biosphere Reserve with the Cauvery South Wildlife Sanctuary.
i.Four forest ranges in Erode Forest Division viz. Anthiyur, Bargur, Thattakarai and Chennampatti will be covered. These are home to more than 10 tigers, elephants, leopards, wild boars, gaurs and deer.
ii.The sanctuary is located on the western side of Sathyamangalam Tiger Reserve (STR), northern side of Kollegal forest division and eastern side of Cauvery Wildlife Sanctuary in Karnataka and adjacent to Cauvery North and South Wildlife Sanctuaries in Dharmapuri and Krishnagiri.
The Government will implement the “Tamil Nadu Coastal Restoration Mission‟ (Neithal meetpu project) which aims to preventing sea erosion, reducing marine pollution and conserving marine biodiversity, with World Bank assistance at an estimated cost of Rs.2,000 crore in the next 5 years.
About Tamil Nadu (TN):
Chief Minister– Muthuvel Karunanidhi Stalin
Governor– Ravindra Narayana Ravi
Wildlife Sanctuary– Vallanadu Black Buck Sanctuary, Grizzled Giant Squirrel Wildlife Sanctuary
Tiger Reserve– Mudumalai Tiger Reserve; Sathyamangalam Tiger Reserve