Chennai, March 14: Tamil Nadu Finance Minister Thangam Thenarasu presented the Medium-Term Fiscal Plan (MTFP) for 2025-26, outlining the state’s borrowing and fiscal projections.

According to the budget estimates, the Tamil Nadu government plans to borrow Rs 1,62,096.76 crore in 2025-26 while repaying Rs 55,844.53 crore in existing debt.

By March 31, 2026 the state’s total outstanding debt is expected to reach Rs 9,29,959.3 crore, with the Debt-to-Gross State Domestic Product (GSDP) ratio pegged at 26.07 per cent.

As per the budget estimates for 2025-26, Tamil Nadu’s total revenue expenditure is projected at Rs 3,73,204 crore, while total revenue receipts are expected to be Rs 3,31,569 crore.

Revenue expenditure includes spending on salaries, pensions, subsidies, grants, and interest payments, whereas revenue receipts come from tax and non-tax sources, grants from the Centre, and Tamil Nadu’s share of central taxes.

The budget has allocated Rs 57,231 crore for capital expenditure, which refers to investments in fixed assets such as civic infrastructure, buildings, and public sector undertakings.

According to the revised estimates for 2024-25, Tamil Nadu’s fiscal deficit stands at 3.26 per cent of the GSDP. For 2025-26, it is projected to be 3 per cent of the GSDP, as per the budget estimates.

Highlighting Tamil Nadu’s economic performance, Finance Minister Thenarasu said that the state remains a key driver of growth, fueled by its strong manufacturing base, expansion in the services sector, and sustained public and private investments.

The minister also emphasised Tamil Nadu’s emergence as a leader in electronics and Electric Vehicle (EV) manufacturing, attracting major investments.

Electronics exports from the state surged from $1.66 billion in 2021-22 to $5.37 billion in 2023-24, with projections to surpass $12 billion in 2024-25. Among the sectoral allocations, the highest amount, Rs 55,261 crore, was allocated for education, followed by urban and rural development.

Key budget announcements include Rs 2,000 crore for a scheme to provide high-tech devices to 20 lakh college students over two years, Rs 1,051 crore for the reconstruction of dilapidated tenements, Rs 88 crore for climate-resilient sponge parks and Rs 400 crore for riverside development projects.

Thenarasu delivered one of the longest budget speeches, spanning over two hours and 30 minutes, in the Assembly Hall at Fort St. George in Chennai. This is the last full-fledged budget of the DMK government before the upcoming Tamil Nadu Assembly elections, scheduled for next year.

--IANS

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