Tamil Nadu's DMK government recently unveiled a seven 'grand Tamil dreams' in its 2024–25 budget, highlighting social justice and fiscal prudence. Central to the budget was "Kalaignarin Kanavu Illam," a housing scheme aimed at constructing 0.8 million concrete houses by 2030, with a budget of INR 3,500 crore. Despite revenue constraints, the state plans to reduce its deficit marginally and maintain fiscal discipline. Following the Fifteenth Finance Commission's recommendations, Tamil Nadu will adopt a fiscal consolidation strategy, gradually reducing the deficit. Despite challenges, the state anticipates revenue growth and increased expenditures, with debt projected to remain stable relative to GSDP. Overall, Tamil Nadu's budget underscores its commitment to inclusive growth and citizen well-being.
Tamil Nadu's Dravida Munnetra Kazhagam (DMK) government revealed seven 'grand Tamil dreams' in its 2024–25 budget, emphasising social justice, women's welfare, and fiscal prudence. The centrepiece of the budget is "Kalaignarin Kanavu Illam," a housing scheme named after the late DMK patriarch and former Chief Minister M. Karunanidhi. This initiative aims to construct 0.8 million concrete houses by 2030, intending to eliminate hut dwellings across the state, with a budget allocation of INR 3,500 crore.
In the initial stage, the construction of one lakh new houses will commence, each priced at INR 3.5 lakh in the upcoming year. The budgetary focus extends beyond housing, aiming to address various sectors such as social welfare, youth empowerment, a knowledge-based economy, women-centric equality, sustainable development, and the preservation of Tamil language and culture. Despite facing revenue constraints, Tamil Nadu aims to reduce its revenue deficit marginally to 1.56% and maintain its fiscal deficit at 3.44% in FY25.
Following the recommendations of the Fifteenth Finance Commission, Tamil Nadu has adopted a fiscal consolidation strategy, gradually reducing the fiscal deficit from 3.46% in 2022–23 to 3.44% in 2024–25. Despite encountering challenges such as disaster impacts and increased allocations to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) within its budgetary resources, the state remains committed to prudent financial management.
Despite these challenges, Tamil Nadu anticipates total revenue receipts of INR 2.99 trillion in FY25, reflecting a 10% increase over the revised estimates of FY24. In terms of expenditure, the state expects a 10% rise in revenue expenditure to INR 3.48 trillion and a 20% increase in capital expenditure to INR 0.59 trillion (INR 59,414 crore) in FY25. Despite these significant expenditures, Tamil Nadu's debt and liabilities are projected to remain around 28% of its Gross State Domestic Product (GSDP) in the fiscal year 2024–25.
Overall, Tamil Nadu's budget for 2024–25 reflects a comprehensive approach to addressing the diverse needs of its population while ensuring fiscal sustainability. By prioritising social welfare, economic development, and cultural preservation, the state aims to foster inclusive growth and enhance the well-being of its citizens.
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