Tamil Nadu's revenue deficit ratio significantly improved

Tamil Nadu's Finance Minister, Thangam Thennarasu, reported a significant improvement in the state's revenue deficit during an Assembly session. He noted that the revenue deficit to Gross State Domestic Product (GSDP) ratio has dropped from 3.28% in 2020-21 to 1.17% in the upcoming 2025-26 budget. This change is attributed to the effective financial management by the DMK-led government. During the discussion, AIADMK MLA C. Vijayabaskar raised concerns about the growing outstanding debt and the efforts to reduce the revenue deficit. Thennarasu replied that the revenue deficit was previously lower at 1% in 2016-17 but rose to 3.28% during the AIADMK administration. Leader of the Opposition, Edappadi K. Palaniswami, argued that the deficit increase in 2020-21 stemmed from the economic impact of COVID-19 lockdowns, which affected businesses and tax revenues. Thennarasu agreed, saying the DMK government inherited similar challenges when it took office in 2021. He emphasized the resilience of Tamil Nadu’s economy despite global economic difficulties, crediting the government’s financial management. Additionally, Vijayabaskar alleged that the cards of about 400,000 beneficiaries under the Chief Minister’s Health Insurance Scheme were deactivated. He also criticized the government for not establishing new medical colleges in the state. In response, Health Minister Ma. Subramanian stated that the DMK government has initiated infrastructure development for 11 new medical colleges recently.