Tamil Nadu’s debts cannot be reduced and will only increase each year, the State’s Finance Secretary M.A. Siddique said in Chennai on Wednesday (August 5, 2026).

“The State’s finances were in a bad shape until three months ago. We have taken significant action over the last three months,” he added. Tamil Nadu’s total receipts are estimated at ₹3,50,766 crore, while total expenditure is projected at ₹4,72,585 crore, resulting in a revenue deficit of ₹55,775 crore. According to Mr. Siddique, the rate of income growth must outpace the rate at which debt rises.

During his Budget speech on Wednesday, Finance Minister N. Marie Wilson pointed out that the government has already taken action towards the mobilisation of nearly ₹15,000 crore through various measures. “Around ₹2,000 crore has already come in,” the Finance Secretary said. “Efforts have been taken particularly on the liquor side. We have achieved about ₹1,500 crore. Action is being taken on the stamps and duties registration side to review the anomalies in areas like guideline value. The outcome of all of this will be seen over the next few months,” he noted.

“We have worked a lot on the commercial taxes and GST fronts. There is a need to gain confidence among taxpayers. We expect GST (Goods and Services Tax) revenue growth of around 12%,” Mr. Siddique said. The VAT (Value Added Tax) and Excise collections (from alcohol) is expected to rise to ₹55,962 crore in 2026-27 from ₹51,000 crore last year.

To a query on why the State is spending on gold coins and gold rings when the debts are so high, the Finance Secretary said: “We need social, human, and physical capital.” He also said that these are not dole-outs but schemes that empower people, especially women. He added that the TVK-led government has not cut down on any welfare schemes.

Published - August 06, 2026 11:46 am IST