Where Tamil Nadu's money comes from, and where it goes.
The state's 2021-22 and 2025-26 Budget Estimates, side by side.
Total spending in the 2025-26 budget
₹4.30 lakh cr
up +42% from ₹3.03 lakh cr in 2021-22, in nominal rupees (not inflation-adjusted). Revenue spending plus capital outlay, the basis comparable across both budgets.
If you quote one thing
From the 2021-22 to the 2025-26 budget, planned spending rose about +42% nominally, ₹3.03 lakh cr to ₹4.30 lakh cr. Over four years of inflation the real rise is much smaller; this is a nominal change between two Budget Estimates.
Revenue raised
₹3.32 lakh cr
+64% vs 2021-22 (nominal)
Capital outlay
₹57,231 cr
+36% vs 2021-22 (nominal)
Fiscal deficit
3%
of GSDP, budgeted (was 4.33% in 2021-22)
Outstanding debt
26.1%
of GSDP, end 2025-26 (was 27.1%)
Read these carefully
Read the four notes below before quoting any single change between the two budgets.
- Nominal rupees. Every figure is in current prices, not adjusted for inflation. Consumer prices rose materially over these four years, so part of each increase is price, not real growth.
- Estimates, not actuals. These are Budget Estimates as presented to the Assembly. The 2021-22 audited actuals (shown separately) came in different from what was budgeted.
- Totals are framed differently. The 2021-22 budget counts gross borrowings and debt repayment in its totals; the 2025-26 budget leads with figures net of debt repayment. Do not subtract the two years' total expenditure directly. The comparable spine is the revenue account, capital outlay and deficit ratios.
- Different GSDP base. Each deficit and debt ratio is measured against that budget's own projected GSDP (2021-22: ₹21.36 lakh cr; 2025-26: ₹35.68 lakh cr). These are different vintages and not strictly comparable.
Follow the money
Where every rupee comes from, and where it goes.
The 2025-26 budget in one flow: sources on the left, plus what is borrowed to cover the gap, out to spending. Borrowing is hatched, never solid, so it never reads as revenue.
Money in
- Own tax ₹2.21L cr
- Borrowed ₹1.05L cr
- Central transfers ₹81,856 cr
- Non-tax ₹28,819 cr
Inside own tax (the biggest source)
- State GST ₹93,620 cr
- Sales tax/VAT ₹70,310 cr
- State excise ₹26,110 cr
- Vehicle tax ₹13,441 cr
- Stamps & reg ₹12,944 cr
- Other own-tax ₹4,470 cr
- Revenue raised ₹3.32L cr
- Borrowed ₹1.05L cr
Money out
- Committed & other ₹2.04L cr
- Other sectors ₹1.08L cr
- Education ₹57,783 cr
- Welfare & nutrition ₹38,096 cr
- Transport ₹27,971 cr
Resources: revenue receipts ₹3.32 lakh cr plus net borrowings ₹1.05 lakh cr = ₹4.37 lakh cr. The ten sectors total ₹2.32 lakh cr (about 53% of resources); the rest (₹2.04 lakh cr) is the committed core (salaries, interest, pensions) and unitemised heads, which overlap. Own tax drills into its full PRS sub-split; four spending sectors drill into the PRS Table-4 callouts (the rest go into a labelled "Other (not itemised)" residual so children sum exactly to the parent). About one rupee in four spent is borrowed. All figures nominal, Budget Estimates.
Tamil Nadu 2025-26 budget, where the money comes from and where it goes. All figures Budget Estimates, nominal rupees crore.
Money in
- State's own tax revenue: ₹2.21 lakh cr made up of State GST ₹93,620 cr, Sales tax / VAT ₹70,310 cr, State excise ₹26,110 cr, Stamps & registration ₹12,944 cr, Motor vehicles tax ₹13,441 cr, Electricity tax & duty ₹4,222 cr, Land revenue ₹235 cr.
- State's own non-tax revenue: ₹28,819 cr .
- Share in central taxes: ₹58,022 cr .
- Grants-in-aid from the Centre: ₹23,834 cr .
- Borrowings (capital receipts): ₹1.05 lakh cr .
- Total revenue receipts ₹3.32 lakh cr; total resources including borrowing ₹4.37 lakh cr.
Money out (selected major sectors)
- Education, sports, art & culture: ₹57,783 cr.
- Social welfare & nutrition: ₹38,096 cr.
- Transport (incl. roads & bridges): ₹27,971 cr.
- Agriculture & allied: ₹23,964 cr.
- Health & family welfare: ₹21,348 cr.
- Energy: ₹20,354 cr.
- Rural development & local bodies: ₹13,132 cr.
- Police: ₹12,714 cr.
- Irrigation & flood control: ₹8,888 cr.
- Urban development: ₹7,936 cr.
- Committed core and other heads not split by sector: about ₹2.04 lakh cr. The ten sectors above are a selected major-head view, not an exhaustive split of spending, and overlap the committed core (salaries, interest, pensions).
A decade in view
Ten years, the headline arc.
Three budgets across a decade: planned to raise, planned to spend, planned gap to borrow. Headline figures only, all on the same Budget Estimate basis.
Fiscal deficit planned, % of GSDP
Each ratio is on that budget's own projected GSDP (different vintages, not strictly comparable).
Revenue raised (planned)
₹1.48 lakh cr → ₹3.32 lakh cr
+124% nominal, 2016-17 → 2025-26
Revenue spending (planned)
₹1.64 lakh cr → ₹3.73 lakh cr
+128% nominal, 2016-17 → 2025-26
Fiscal deficit band
2.96% → 4.33% → 3%
of GSDP, planned; a pandemic-era bulge, then back toward ~3%
The budget roughly doubled in nominal terms. Planned revenue rose from ₹1.48 lakh cr in 2016-17 to ₹3.32 lakh cr in 2025-26 (+124%), with spending in step. This is current prices; after years of inflation the real rise is much smaller.
The planned fiscal deficit traces the cycle: about 2.96% of GSDP in 2016-17, a pandemic-era bulge to 4.33% in 2021-22, then back toward the ~3% statutory band at 3% in 2025-26. Read the shape, not the decimals: each ratio uses a different GSDP vintage.
Headline view only. There is no 2016-17 sector breakdown: the official Demands for Grants detail and PRS's 2016-17 transcription have no citable source, so it is left blank, not guessed. Budgets are plans, not outcomes.
What actually happened in 2016-17 (CAG-audited actuals)
Audited actuals (CAG, State Finances Audit Report 2018-19): revenue receipts ₹1,40,231 cr, revenue expenditure ₹1,53,195 cr, on a GSDP of ₹13,02,639 cr. The audited fiscal deficit was ₹56,170 cr (4.31% of GSDP), but about ₹22,815 cr of that was the one-time UDAY power-sector bailout loan to TANGEDCO; excluding it the underlying deficit was roughly 2.5% of GSDP.
A ten-year view at the headline level only. All three points are Budget Estimates (what was planned), so they are directly comparable; the 2016-17 audited actuals are shown separately as context. There is no 2016-17 sector breakdown here: the official Demands for Grants detail and PRS's 2016-17 transcription are not available from a citable source, so it is left blank rather than guessed. All figures are nominal (current prices); each fiscal-deficit ratio is measured on that budget's own projected GSDP, which are different vintages and not strictly comparable.
Sources, in detail
How the money is raised.
Each revenue source on its own, 2021-22 vs 2025-26.
Biggest shift
Own tax revenue up +74%, led by State GST nearly doubling (nominal).
How each source changed since 2021-22
2025-26 (solid) over 2021-22 (lighter), same scale.
State's own tax revenue
Taxes the state levies and collects itself.
₹2.21 lakh cr₹1.27 lakh cr2021-22 → 2025-26 +74%
State's own non-tax revenue
Interest, dividends, fees and user charges.
₹28,819 cr₹14,139 cr2021-22 → 2025-26 +104%
Share in central taxes
Tamil Nadu's Finance-Commission share of central tax collections.
₹58,022 cr₹27,148 cr2021-22 → 2025-26 +114%
Grants-in-aid from the Centre
Conditional and unconditional transfers from the union government.
₹23,834 cr₹34,564 cr2021-22 → 2025-26 -31%
Borrowings (capital receipts)
Net market and other borrowings that finance the fiscal deficit.
₹1.05 lakh cr₹1.18 lakh cr2021-22 → 2025-26 -11%
2025-26 budget2021-22 budget (same scale)n/a = not comparable across the two budgets
Inside the tax rupee
State GST overtook sales-tax/VAT as the biggest own-tax head.
State GST
The state's share of Goods & Services Tax.
₹93,620 cr₹42,300 cr2021-22 → 2025-26 +121%
Sales tax / VAT
Mostly VAT on petroleum products plus residual pre-GST sales tax.
₹70,310 cr₹53,798 cr2021-22 → 2025-26 +31%
State excise
Duty on liquor and alcohol.
₹26,110 cr₹8,770 cr2021-22 → 2025-26 +198%
Stamps & registration
Stamp duty and property registration fees.
₹12,944 cr₹13,253 cr2021-22 → 2025-26 -2%
Motor vehicles tax
Tax on vehicles.
₹13,441 cr₹6,582 cr2021-22 → 2025-26 +104%
Electricity tax & duty
Taxes and duties on electricity.
₹4,222 cr₹1,355 cr2021-22 → 2025-26 +212%
Land revenue
Revenue from land.
₹235 crn/a2021-22 → 2025-26 n/ano comparable 2021-22 figure
2025-26 budget2021-22 budget (same scale)n/a = not comparable across the two budgets
Spending, in detail
How each programme changed.
Education is the largest single programme. 2025-26 over 2021-22, same scale.
Biggest mover
Social welfare & nutrition rose the most, lifted by the new Magalir Urimai Thogai women's income-support scheme.
Education, sports, art & culture
Schools, colleges, scholarships and the education department.
₹57,783 cr₹40,208 cr2021-22 → 2025-26 +44%
Social welfare & nutrition
Welfare, nutrition and direct income support schemes.
₹38,096 cr₹24,527 cr2021-22 → 2025-26 +55%
Transport (incl. roads & bridges)
Highways, roads, bridges and transport.
₹27,971 cr₹18,156 cr2021-22 → 2025-26 +54%
Agriculture & allied
Farming, irrigation support, animal husbandry and fisheries.
₹23,964 cr₹23,398 cr2021-22 → 2025-26 +2%
Health & family welfare
Hospitals, primary health and public-health programmes.
₹21,348 cr₹18,632 cr2021-22 → 2025-26 +15%
Energy
Power-sector subsidy and support to the state electricity utility.
₹20,354 cr₹16,020 cr2021-22 → 2025-26 +27%
Rural development & local bodies
Panchayats, rural infrastructure and employment.
₹13,132 cr₹8,964 cr2021-22 → 2025-26 +46%
Police
Police force and internal security.
₹12,714 cr₹8,601 cr2021-22 → 2025-26 +48%
Irrigation & flood control
Water resources, irrigation and flood control.
₹8,888 cr₹5,761 cr2021-22 → 2025-26 +54%
Urban development
Cities, urban local bodies and urban infrastructure.
₹7,936 cr₹8,803 cr2021-22 → 2025-26 -10%
2025-26 budget2021-22 budget (same scale)n/a = not comparable across the two budgets
The committed core
The bills that must be paid first.
Salaries, pensions and interest are committed: hard to cut in any year. They take about 62% of revenue in 2025-26 (₹2.07 lakh cr of ₹3.32 lakh cr), barely moved from 66% in 2021-22. The share did not rise; it grew nearly as fast as revenue. It stays large: roughly three-fifths of revenue is spoken for before any new programme.
Committed share, 2021-22
66%
of revenue receipts (₹1.34 lakh cr)
Committed share, 2025-26
62%
of revenue receipts (₹2.07 lakh cr)
Salaries
Pay of government employees.
₹91,726 cr₹63,919 cr2021-22 → 2025-26 +44%
Interest payments
Interest on the state's outstanding debt.
₹69,114 cr₹41,603 cr2021-22 → 2025-26 +66%
Pensions
Pensions of retired government employees.
₹46,214 cr₹28,251 cr2021-22 → 2025-26 +64%
2025-26 budget2021-22 budget (same scale)n/a = not comparable across the two budgets
Fiscal health
Budgeted consolidation, with a caveat.
On a budgeted basis the deficits narrowed: revenue deficit 2.75% to 1.2% of GSDP, fiscal deficit 4.33% to 3%. The caveat: each ratio uses that budget's own projected GSDP, and these are different vintages, so the percentages are not strictly comparable.
Revenue deficit
2.75% → 1.2%
of GSDP, 2021-22 → 2025-26 (BE)
Fiscal deficit
4.33% → 3%
of GSDP, 2021-22 → 2025-26 (BE)
Outstanding debt
27.1% → 26.1%
of GSDP, 2021-22 → 2025-26 (BE)
Ratios measured on each budget's own projected GSDP: ₹21.36 lakh cr for 2021-22 and ₹35.68 lakh cr for 2025-26 (different vintages, not strictly comparable).
What actually happened in 2021-22 (CAG-audited actuals)
Audited, 2021-22 came in better than budgeted: revenue receipts ₹2.07 lakh cr (vs ₹2.02 lakh cr) and a revenue deficit of just ₹46,538 cr (2.14% of GSDP vs 2.75%). The audited fiscal deficit was about ₹73,739 cr (~3.38% vs 4.33%); that figure is cross-referenced via RBI and the CAG audit report, not a single primary table, so treat it as indicative. Use the actuals for what happened, the budget for what was planned.
Sources & method
Every figure is cited.
Figures are transcribed by PRS Legislative Research from the official Tamil Nadu Annual Financial Statement and Budget documents, and cross-checked against CAG audited Finance Accounts (the audited actuals) and the RBI State Finances study. Nothing here is estimated by tnfacts; gaps are left blank, not guessed. All amounts are nominal (current prices).
More on the tiering and how sources are reconciled: Methodology.
The bottom line
Tamil Nadu's budget grew fast in nominal terms and was planned tighter, while salaries, pensions and interest still claim about three-fifths of every rupee of revenue.
Read the four comparability notes before quoting any change: the two budgets are framed differently, every figure is nominal, and Budget Estimates are not audited actuals.