Tamil Nadu faces revenue deficit and increased borrowing

The Tamil Nadu government borrowed ₹12,044 crore through bond issues in July as expenditure continued to outpace revenue. Between April and July of the current financial year, the state recorded total receipts of ₹89,718 crore against total expenditures of ₹1.23 lakh crore, resulting in a revenue deficit of ₹25,267 crore. Major expenditure drivers included interest payments on existing loans at ₹21,176 crore and pension payments at ₹17,237 crore.

In a separate budgetary development, the state has allocated ₹2,486.49 crore for the Administration of Justice in the revised budget estimate for 2026-27. The allocation aims to strengthen judicial infrastructure and manpower. Currently, the subordinate judiciary faces vacancies, with 207 judicial officer posts unfilled out of a sanctioned strength of 1,403. Additionally, the Madras High Court is operating with 66 judges against an approved strength of 75.