CHENNAI: Speaker JCD Prabhakar on Tuesday announced that the revised budget for the 2026-27 financial year would be presented in the Assembly on August 5, followed by the agriculture budget the day after. Addressing the media at the secretariat, Prabhakar said the first budget of the TVK government, to be presented by Finance Minister N Marie Wilson, would meet the expectations of the people who voted for the party, and added he would advice the government to telecast entire proceedings live.
Former finance minister Thangam Thennarasu, on February 18, had presented the interim budget for this fiscal, which stated the State’s Own Tax Revenue (SOTR) for 2025-26 fell short of the target by `14,355 crore. Against the projected collection of `2,20,895 crore, the revised estimate stood at `2,06,540 crore.
The shortfall was mainly attributed to lower-than-expected GST collections, which form the largest share of the state’s tax revenue. Despite the setback, the interim budget had projected an 11% increase in SOTR to `2,29,579 crore in 2026-27.
The interim budget had estimated the state’s total revenue receipts at `3.44 lakh crore and expenditure at `3.93 lakh crore, resulting in a projected revenue deficit of `48,686 crore. However, the white paper released last month revised the estimated revenue deficit sharply to `90,500 crore.
The projected state’s total revenue receipts comprise `2.29 lakh crore from its own tax revenue, `27,704 crore from its own non-tax revenue, `24,762 crore in grants-in-aid from the union government, and `62,531 crore as its share of central taxes.
According to sources, to strengthen its revenue base, the TVK government is focusing on reforms in the mining sector, which generated annual revenue of `4,433 crore. The proposed measures include revising taxes on mineral-bearing lands. The government is also seeking to increase revenue collections through reforms in Tasmac, commercial taxes, registration and motor vehicles departments.
The government has already announced several welfare initiatives, including 200 units of free electricity for consumers using up to 500 units, waiver of crop loans up to `75,000 irrespective of landholding size, and the provision of a one-gram gold ring for every child born in government hospitals.
Besides, the TNEB group currently carries outstanding debt of `2.47 lakh crore. The decision to postpone annual tariff revisions could further complicate the government’s plans to reform the power sector and improve its financial health.
Similarly, the state transport undertakings have accumulated outstanding liabilities of `61,642 crore. The implementation of the Special Public Distribution System (PDS), under which tur dal and cooking oil are supplied through cooperative outlets, has also contributed to financial pressures, with the outstanding liabilities of the Tamil Nadu Civil Supplies Corporation (TNCSC) reaching approximately `28,000 crore.
ON MLA’s ARREST
Replying to questions on the arrest of Vilathikulam MLA GV Markandayan, the speaker cited Rule 291 of the Assembly Rules, clarifying his permission is required only if a legislator is to be arrested or served with a court notice on the Assembly premises