Estimates notwithstanding, T.N. government is hopeful of sticking to fiscal norms

Referring to the savings of about ₹5,710 crore in non-development expenditure, the government is optimistic about achieving the targets, which have, of course, been set in "the absence of new external fiscal challenges

- AJIKUMAR

Estimates fixed by the Tamil Nadu government with respect to various fiscal indicators for 2026-27 have raised questions over whether they are realistic, despite the State undergoing a “severe fiscal stress” arising out of the Goods and Services Tax (GST) rate rationalisation and the Union government's actions.

Be it gross fiscal deficit or the ratio of revenue deficit to the Gross State Domestic Product (GSDP) or interest payment to Revenue Receipts, the estimates are all favourable. This has been done even though the State, after 2022-23, has been increasingly under fiscal strain.