Tamil Nadu projects revenue deficit of over ₹78,000 crore for 2025‑26

The Tamil Nadu government’s provisional financial statement for 2025‑26 shows revenue falling far short of targets. Tax collections are projected at ₹1,92,493 crore, about 13 % below the expected ₹2,20,895 crore, with all major tax heads—sales and service tax, GST, stamp duty and motor vehicle tax—underperforming. Non‑tax revenue is estimated at ₹23,830 crore, 29 % below the forecast of ₹28,819 crore.

Total revenue of ₹2,91,219 crore is ₹40,340 crore (12.17 %) less than the anticipated ₹3,31,569 crore, while total expenditures are projected to exceed ₹4 trillion, pushing the fiscal gap to ₹41,635 crore. The report warns that the shortfall could nearly double to around ₹78,000 crore if current trends continue, with deficits expected to persist into 2026‑27. Additional pressures include a ₹6,000 crore loan waiver, a rise in free electricity allocation, and the closure of 717 liquor outlets, all of which will further strain the budget.