CHENNAI: The debt burden of the Tamil Nadu government will burgeon to ₹9,29,959.30 crore by March 31, 2026, according to the budget documents for the year 2025-26. This constitutes 26.07% of the GSDP in 2025-26.
The outstanding debt as a percentage of GSDP is expected to be 25.49% in 2026-27 and 24.85% in 2027-28. “Therefore, the state aims to maintain debt sustainability as part of its fiscal consolidation roadmap,” the budget document said.
The government plans to borrow ₹1,62,096.76 crore during 2025-26 and make a repayment of ₹55,844.53 crore. The finance minister said the revenue deficit for 2025-26 is estimated at ₹41,634.93 crore.
In view of the revenue augmentation measures, including improvement in tax administration and collection efficiency, the revenue deficit is expected to reduce to ₹31,282.23 crore in 2026-27 and subsequently reduce further to ₹18,026.48 crore in 2027–28. This would create additional space for capital expenditure in the state.
The minister said that for 2025-26, the state’s own tax revenue is projected at ₹2,20,895 crore, which includes ₹1,63,930 crore for commercial taxes, ₹26,109 crore for stamps and registration, ₹13,441 crore for motor vehicle taxes, and ₹12,944 crore for state excise.
“Taking into account the growth in the state’s economic activity, the revision of taxes, and improvement in collection efficiency, the state’s own tax revenue is estimated to grow at 14.60% in 2025-26,” he added.