Tamil Nadu Finance Minister to Present FY 2024-25 Budget Today
Tamil Nadu Finance Minister Thangam Thennarasu is set to present the state budget for the financial year 2024-25 today. Titled 'Crossing obstacles and marching towards growth,' the budget is being unveiled just ahead of the 2024 general elections. With the ruling DMK government focusing on securing all 39 seats in the parliamentary elections, the budget's reception will be closely watched.
Under Chief Minister M.K. Stalin, the DMK government has introduced several populist schemes since coming to power in 2021. The flagship social welfare program, 'Kalaignar Magalir Urimai Thittam,' providing Rs 1,000 per month to over 1.5 crore women heads of families, is a key focus. The budget is expected to outline measures to generate funds for such recurring expenditures.
A significant aspect of the budget will be revenue augmentation to meet the expenditure for various schemes. The state has faced fiscal stress due to flood-related disasters, and resource mobilization has been constrained after the implementation of GST, as highlighted by Tamil Nadu Governor R.N. Ravi in his address on February 12.
The State's Own Tax Revenue (SOTR), constituting 78.9% of Tamil Nadu's total revenue, was projected at Rs 1,81,182 crore in 2023-24. The state has implemented measures such as increasing excise duty on liquor and changes in the registration charges of flats to boost revenue.
However, challenges remain, with the impact of floods leading to revenue shortfalls. The budget will play a crucial role in addressing these challenges and outlining the financial priorities for the state.
