Speech of Dr.

Palanivel Thiaga Rajan, Minister for

Finance and Human Resources Management,
Government of Tamil Nadu, presenting the
Budget Estimates for the year 2023-24 to the
Legislative Assembly on 20th March 2023.

Hon‟ble Speaker,

I rise to present to this August House the Budget

Estimates for the year 2023-24. I commence my address
by recalling the immortal words of Saint Thiruvalluvar,
which eloquently captures the people-oriented leadership
of our Hon‟ble Chief Minister, who is strongly committed
to the well-being and welfare of the people of Tamil Nadu
and is guiding the State with utmost feeling of
responsibility and care, amidst various difficulties:

க ொடையளி கெங்க ொல் குடிகயொம்பல் நொன்கும்

உடையொனொம் கேந்தர்க் க ொளி

(குறள் – 390)

Bounty, mercy, justice and love for the

subjects,Who has all these is a light among
rulers

(Kural–390)
 2

2. In the last budget, the thrust was on social

welfare and inclusive economic development by designing
various schemes, even as this Government worked
towards fiscal consolidation and administrative reforms.
I present the budget speech today with the deep
satisfaction that we have taken enormous strides towards
fulfilling our vision. For the last two years, our Dravidian
model of governance, inspired by the century old
Dravidian Movement has been marching forward with the
vision of ensuring social justice in all walks of life. I pay
my respects and homage to our political forerunners who
have always guided us in this path.

3. Tamil Nadu is a beacon for the entire Country

for pursuing the principles of social justice, women
empowerment, inclusive growth and rationalism, made
possible by the fact that, we continue to follow the
footsteps of the Justice Party that had planted the seeds
of social reforms a century ago. The Dravidian movement
led by the triumvirate of its political stalwarts Thanthai
Periyar, Perarignar Anna and Muthamizharignar
Kalaignar, has emblazoned the idea of self-respect into
the body politic of Tamil society. It is this principle of
self-respect which has made us the foremost State in
advocating state autonomy, linguistic rights and true
federalism. Our Hon‟ble Chief Minister, who also has
travelled along the same ideological path, is now the
 3

bulwark and life breath of these ideals, which are the

lynchpins of Tamil society.

4. At the outset, I thank the Hon‟ble

Chief Minister for his constant guidance and unstinting
support. Only due to the confidence that he has reposed
in me and the inspiration that he constantly provides, we
have been able to embark upon widespread and
pathbreaking reforms to promote the welfare of the
people. In the last budget, we laid out our broad focus
areas as follows:

(i) enhancing economic growth,

(ii) strengthening the social safety net,

(iii) creating large number of job opportunities for

youth,

(iv) improving livelihood of women through

education,

(v) socio-economic development of the

marginalized,

(vi) elimination of poverty through inclusive

growth,
 4

(vii) data-driven governance to ensure that full

benefits of Government schemes reach the
people, and

(viii) promoting environmental sustainability and

inter-generational equity.

We have achieved significant results in each of

these areas during the current year.

5. Even as we rightly celebrate our

accomplishments, we are bracing for challenging times
ahead, due to unprecedented inflation, the continuing
war in Ukraine and volatility in the Global Economy and
Financial Markets. We have outperformed by growing
faster than the national average in the previous year and
by significantly lowering the Revenue Deficit and Fiscal
Deficit when compared to that of the Union Government.
This is a testimony to the quality of leadership and deft
financial management by our Hon‟ble Chief Minister.

6. Notwithstanding the several massive welfare

schemes that are being implemented during the last two
years, owing to the unprecedented and difficult
reforms undertaken, we have reduced the annual
revenue deficit of around Rs.62,000 crore which
we inherited on assuming office, to around
Rs.30,000 crore in the Revised Estimates of the
 5

current year. It is noteworthy that this is approximately

Rs.5,000 crore lower than the level of the pre-COVID
year of 2019-20. In accordance with the mandate of the
Fiscal Responsibility Act of achieving Zero-revenue
deficit, the State will adopt a smooth glide path without
compromising on our welfare initiatives and
developmental priorities.

7. The main reason for the fiscal stress faced by

the Government at the time of assuming office was the
fall in tax revenue in the previous years. The State‟s own
tax revenues which were at a healthy 8 per cent of the
Gross State Domestic Product (GSDP) during 2006-11
have witnessed a precipitous fall in the last 10 years and
reached 5.58 per cent in 2020-21. This is much lower
when compared to other large States such as
Maharashtra and Karnataka. Though the Tax-GSDP ratio
has increased to 6.11 per cent in the current year due to
the efforts of this Government in the last two years,
concerted action is needed to raise it further to find
financial resources for welfare schemes.

8. The Hon‟ble Chief Minister adroitly handled

the second wave of Covid, major floods in Chennai and
severe financial stress. In spite of these constraints, he
was able to fulfill the promises to the people and has
several achievements to his credit. He has urged us to
 6

strive to fulfill the expectations of the people in the

coming years and I have prepared this budget keeping
these instructions in mind. With these introductory
remarks, let me now proceed to sector-wise view of the
Budget 2023-24.

Tamil Development and Culture

9. To honour the legacy of Tamil martyrs

Thiruvalargal Thalamuthu and Natarajan, who
sacrificed their lives to protect Tamil in the struggle
against Hindi imposition, a memorial will be
established at Chennai.

10. In order to propagate the ideals of Annal

Ambedkar, the father of the Indian Constitution and the
architect of a progressive and egalitarian India, the
Government will provide a grant of Rs.5 crore to
translate his works into Tamil language.

11. To give an impetus to the growth of Tamil as

a global language by promoting its usage in the
technology sector, an „International Conference on
Tamil Computing‟ will be held with the participation of
renowned experts from across the world. This will greatly
encourage development of software in Tamil language.

12. With a view to celebrating the glory of Tamils

who have conquered many lands overseas, efforts will
 7

be taken to promote and support sea cruises that

will connect places of significance in Tamil culture.
These cruises will showcase the rich history, literature,
art, culture, handicrafts and cuisine of Tamil people and
will spread the State‟s glory across the seven seas.

13. The Government has been providing free

bus pass to elderly Tamil scholars in recognition of
their invaluable contribution to our language. In the
coming year, the Government will extend this benefit
to 591 more Tamil scholars.

14. To enable the younger generation to imbibe

and appreciate our celebrated art heritage, the
Government will expand the widely popular
Chennai Sangamam cultural programme to 8 major
cities in the coming year. It will provide a platform to
nurture folk art and artists and celebrate the shared
cultural ethos of the Tamil people. An amount of
Rs.11 crore is provided in this Budget for this purpose.

15. To preserve folk arts and to ensure that these

traditions continue to flourish in the future, 25 part time
folk art training centres will be set up across the State.

16. The Cholas are one of the greatest dynasties

who conquered seas and the lands beyond, and ruled
vast stretches of India and South East Asia for many
 8

centuries. Tamil art, music, architecture, sculpture, crafts

and dance reached their pinnacle during the Chola period
and their glory spread far and wide. To highlight the
contribution of the Cholas who ruled the world,
and to preserve artefacts and relics of that age,
a „Grand Chola Museum‟ will be set up in
Thanjavur.

Welfare of Sri Lankan Tamils

17. The Hon‟ble Chief Minister intervened on

humanitarian grounds to send essential commodities to
help the people affected by the severe economic crisis in
Sri Lanka. After securing the consent of the Union
Government, 40,000 MT of rice, 500 MT of milk powder
and 102 MT of medical supplies, worth Rs.197 crore have
been sent in three ships.

18. We have been continually requesting the

Union Government to grant Indian citizenship to
Sri Lankan Tamils residing in India. Pending this request,
this Government had announced that 7,469 houses will
be constructed in the rehabilitation camps for Sri Lankan
Tamils, with the objective of providing safe and quality
accommodation. In the first phase, 3,510 houses were
taken up for construction at a cost of Rs.176 crore and
the works are underway. In the second phase, the
Government will sanction Rs.223 crore towards
 9

construction of the remaining 3,959 houses in the

coming financial year.

Welfare of Ex-Servicemen

19. Recognizing the valour and supreme sacrifice

made by security forces in guarding our nation, the
ex-gratia that is being offered by the State Government
to the next of kin of armed forces personnel hailing from
Tamil Nadu who are killed in war/ war-like operations will
be doubled from Rs.20 lakh to Rs.40 lakh. Further, the
monetary grants that are offered to gallantry
awards/distinguished service medal winners in armed
forces hailing from Tamil Nadu will be enhanced four
times.

Health and Family Welfare

20. Ensuring quality education and medical

facilities to all is the fundamental objective of this
Government. It is in pursuance of this goal that the
Government is implementing pioneering schemes like
Makkalai Thedi Maruthuvam and Innuyir Kappom,
besides taking several initiatives to strengthen the public
health infrastructure in the State. The Government is
implementing the novel Makkalai Thedi Maruthuvam
scheme, where non-communicable diseases are
identified and addressed at an early stage. This
Government which is deeply concerned about the welfare
 10

of workers, who are the bedrock of our economy,

will launch a new initiative to address the issue of
non-communicable diseases among workers in factories
and in unorganised sectors like construction. The
Makkalai Thedi Maruthuvam scheme will be
expanded to 711 factories covering 8.35 lakh
workers in the first phase. Health checkup camps
will be held in these factories with specific emphasis on
non-communicable diseases like high blood pressure and
diabetes. Migrant labourers will also benefit under this
scheme.

21. Under the Chief Minister‟s Comprehensive

Health Insurance Scheme, insurance coverage of
Rs.5 lakh is being given per year per family. During the
current year, so far, 11.82 lakh patients have availed
treatment worth Rs.993 crore, which is the highest since
the inception of the scheme.

22. The 1,000 bedded Kalaignar Memorial

Multi Super Speciality Hospital in the premises of
King Institute of Preventive Medicine and Research
Centre, Guindy will be inaugurated this year.
New speciality hospital buildings are being constructed in
three Government medical college hospitals at Madurai,
Coimbatore and Kilpauk at a total cost of Rs.1,020 crore
and they will be put to use shortly.
 11

23. New buildings will be constructed at a cost of

Rs.110 crore in the Mahatma Gandhi Memorial Hospital,
which caters to the medical needs of people in
Tiruchirappalli and its surrounding districts. In order to
fulfil the medical needs of people in North Chennai, a new
multi-speciality block, nurses training school and
hostel will be constructed in Stanley Hospital at a cost of
Rs.147 crore.

24. The first Government Siddha Medical College

in the State was established in Palayamkottai in 1964.
At present, there are 100 undergraduate and
60 post-graduate students in this institute. Further,
treatment is also being provided to nearly 1,000 patients
on a daily basis. The Government will undertake works to
improve the infrastructure of the college and hospital at a
cost of Rs.40 crore. Rs.18,661 crore has been allotted
towards Health and Family Welfare Department in the
Budget.

School Education

25. Due to the various initiatives launched by this

Government in the last two years, the student enrolment
in Government schools has increased significantly.
Therefore, the Government had launched the
„Perasiriyar Anbazhagan School Development
Scheme‟ to modernize and upgrade physical
 12

infrastructure at an outlay of Rs.7,000 crore over a

period of five yeaRs.During the current year, works to
the tune of Rs.2,000 crore have been taken up. In the
upcoming financial year, the Government will
construct classrooms, laboratories and toilets at a
cost of Rs.1,500 crore.

26. The „Ennum Ezhuthum‟ Programme aims

at achieving Universal Foundational Literacy and
Numeracy for students in classes 1 – 3 by 2025. Owing
to the positive response received, this programme will
be expanded to classes 4 and 5 with an outlay of
Rs.110 crore in the upcoming financial year.

27. The goal of social justice can be fulfilled only

when knowledge is made widespread and accessible to
people in the remotest of places. With this objective,
moving beyond Chennai, book fairs were conducted in all
districts and five literature festivals were successfully
conducted during the current year. This great initiative
will continue next year also, at a cost Rs.10 crore.
The Government successfully organized the first edition
of the Chennai International Book Fair in January 2023
with participation from 24 countries. An unprecedented
number of 355 MoUs were signed between publishers
from Tamil Nadu and various countries paving way for
 13

knowledge and copyright exchange. This international

book fair will also be conducted next year.

28. Educational institutions play a vital role in

establishing social justice, equality and equity in all walks
of life. Therefore, the Government has been taking
multiple initiatives in the last two years to improve the
quality of education through schemes such as
Ennum Ezhuthum, Schools of Excellence, Hi-tech Labs,
Model Schools, and Perasiriyar Anbazhagan School
Development Scheme. It is essential that the benefits of
these programmes reach all students. Requests have
been received to operate and maintain Adi Dravidar
Welfare Schools through the School Education
department in the State High-Level Vigilance and
Monitoring Committee meetings held under the
chairmanship of the Hon'ble Chief Minister on 19.8.21
and 12.4.22. To achieve the goal of social justice in the
field of education, to improve the quality of schools
functioning under various departments and to ensure
that all students are provided quality education,
all schools functioning under various departments
like Adi-Dravidar and Tribal Welfare, Backward
Class, Most Backward Class & Denotified
Communities, Hindu Religious & Charitable
Endowments and Forest will be brought under the
School Education department. It will be ensured that
 14

the service conditions and benefits of teachers and staff

presently working in these schools are protected.

29. The Government is using data based

governance to remove various shortcomings in the
implementation of schemes. In order to reduce the
unnecessary delay in the disbursement of scholarships by
various departments and to ensure that scholarship
amount reaches eligible students in a timely manner,
directly to their bank accounts, an integrated scholarship
portal will be created.

30. An iconic eight-storeyed library in two lakh

square feet, with all modern amenties is being
constructed in Madurai, the seat of Tamil Sangam. This
library will cater to all sections of the society including
children, students, researchers, youth who are preparing
for competitive exams, homemakers, senior citizens and
the differently abled. The library will feature special
facilities including children‟s section with colourful books,
separate area with internet facility for those writing
competitive exams, braille books for the visually
impaired, air conditioned meeting halls, art gallery to
exhibit the cultural heritage of Southern Tamil Nadu and
an exquisite repository of the writings and speeches of
Muthamizharignar Kalaignar.
 15

31. In the first phase, this library will house

3.50 lakh books in Tamil and English relating to various
subjects like literature, culture, science, engineering, law
and medicine. This modern temple of knowledge in
Southern Tamil Nadu will be named Kalaignar
Centenary Library to mark the commencement of
centenary celebrations of Muthamizharignar Kalaignar, in
recognition of his immense contribution to the Tamil
society. This library will welcome its first readers in June
this year. Rs.40,299 crore has been allocated towards
School Education Department in the Budget.

Higher Education and Skill Development

32. The Government is cognizant of the fact that

human resource is the greatest wealth of the State and
has been investing heavily in its development. We
recognise that a highly skilled workforce is a unique
competitive advantage to attract investments into the
State. Therefore, to create a workforce suited for the
rapidly changing industrial ecosystems, a scheme is
underway to transform 71 Government ITIs to Centres of
Excellence at a cost of Rs.2,877 crore. The works will be
completed and students will be enrolled in new courses in
the coming academic year itself.

33. In the next phase, the Government will

launch a programme in the coming year to transform and
 16

modernize the Government Polytechnic colleges into

„Centres of Excellence‟ in accordance with the Industry
4.0 standards in collaboration with industry partners.
The programme will focus on infrastructure
modernization, industry relevant course content creation,
capacity building of faculty members and employment
opportunities for the students. 54 Government
polytechnics will be upgraded as „Centres of
Excellence‟ at a total cost of Rs.2,783 crore under
this scheme.

34. The Government proposes to establish a

world class skill centre named “Tamil Nadu World
Innovation and Skill Training Hub” (TN-WISH) at
Ambattur at a cost of Rs.120 crore with the objective
of providing skill training to trainers in ITIs and
polytechnics and to create a highly skilled workforce.
The hub will provide training in advanced technologies
such as Mechatronics, Internet of Things, Advanced
Automobile Technology, Precision Engineering and
Advanced Welding.

35. The Hon‟ble Chief Minister had launched the

visionary programme “Naan Mudhalvan” last year to
train 10 lakh students and youth in industry relevant
skills and thus generate job opportunities for them.
This programme is being implemented in all engineering
 17

and arts and science colleges in collaboration with

industry partneRs.Academic curriculum has been revised
to include industry relevant courses to improve
employability of students. Currently, about 12.7 lakh
students from engineering and arts and science colleges
are being trained under this programme. 12,582
engineering faculty and 7,797 arts & science faculty have
also been trained. Rs.50 crore has been provided for this
scheme in the budget.

36. To scale up skill training infrastructure in a

massive way, factories will be used as Skill Development
Centres. Industries will be incentivized to provide
on-the-job-training to youth in factories. In this Budget,
an amount of Rs.25 crore has been allocated
for this „Factory Skill Schools‟ programme.
A state-of-the-art Skill Development Centre will be
established, at an estimated cost of Rs.80 crore, in
SIPCOT Industrial Park, Shoolagiri in Krishnagiri district,
which is emerging as the third largest industrial cluster in
the State.

37. The Perunthalaivar Kamarajar College

Development Scheme was launched last year with an
outlay of Rs.1,000 crore for improving infrastructure and
basic amenities in Government colleges over a period of
five yeaRs.In the current year, works such as
 18

construction of new classrooms and additional

laboratories have been taken up in 26 Government
polytechnic colleges and 55 Government arts and science
colleges. These works will be carried out in the
coming financial year also at an estimated cost of
Rs.200 crore.

38. It is seen that the number of students from

Tamil Nadu clearing the Civil Services Examinations has
been on the decline in the last few years. With the
objective of reversing this trend, Tamil Nadu Skill
Development Corporation (TNSDC) will implement a
scheme in co-ordination with Anna Staff Administrative
College to help civil services aspirants to access
better coaching facilities and materials. Every year 1,000
civil services aspirants will be short listed through
a screening test. Each aspirant will be provided
Rs.7,500 per month for 10 months to prepare for
the preliminary examination. Those students
who clear the preliminary examination will be
provided a lumpsum amount of Rs.25,000.
For this programme, an amount of Rs.10 crore has been
allocated to TNSDC in the Budget Estimates 2023-24.
In aggregate, an allocation of Rs.6,967 crore
has been made to the Higher Education Department in
this Budget.
 19

Youth Welfare and Sports

39. With the realization that tomorrow‟s society is

the responsibility of today‟s youth, this Government is
committed to making the youth strong and vibrant. With
the successful conduct of International Chess Olympiad in
Chennai and the competitions for Chief Minister‟s Trophy
being held across the State, the sports sector has been
given a new impetus. As the next step, the Government
through the Chennai Metropolitan Development
Agency will set up a state-of-the-art Global
Sports City in Chennai which will promote the
development of sports and emerge as a favoured
destination for leading sports events. For this purpose, a
detailed project report will be prepared by engaging
international experts.

40. The Government will undertake a

comprehensive renovation of the iconic Jawaharlal
Nehru Outdoor Stadium, Chennai and equip it with
modern sports facilities at an estimated cost of
Rs.25 crore.

Adi-Dravidar and Tribal Welfare

41. This Government, which is founded on the

principles of social justice and equitable growth, attaches
highest priority to the development of Adi-Dravidars and
Tribals. With the objective of increasing the Gross
 20

Enrolment Ratio of Adi Dravidar and Tribal students in

higher education and providing them safe and quality
accommodation, four new hostels will be constructed
with modern facilities in Madurai, Coimbatore,
Tiruchirappalli and Nilgiris at an estimated total
cost of Rs.100 crore. These hostels will be maintained
and managed by engaging professional agencies.

42. It has been a long pending demand to enact

a legislation to ensure effective implementation of the
Scheduled Castes and Tribal Sub Plan. Heeding to this
request, the Government will bring a new legislation
to ensure adequate allocation of funds and
effective implementation of the Scheduled Castes
and Tribal Sub Plans. The draft bill will be introduced in
the next session of the Assembly after due consultation
with stakeholdeRs.

43. The practice of manual cleaning of sewers

and septic tanks is a blot on humanity. In order to
completely prevent deaths due to manual cleaning of
sewers and septic tanks, a new scheme has been
recently launched by this Government. By transforming
sanitary workers into entrepreneurs and facilitating them
to procure modern machinery, this scheme will enable
them to undertake these works in a safe manner and
generate income. In this scheme, priority will be given to
 21

families of sanitary workers who died during manual

cleaning and to persons currently engaged in sanitary
work, on the basis of their willingness. In the first phase,
the scheme will be implemented in the Chennai
Metropolitan area. Based on this pilot exercise, the
scheme will be expanded to the entire State.

44. It is seen that the share of persons from

Scheduled Caste and Scheduled Tribe communities who
avail various entrepreneurship promotion subsidies from
the Government is very low. In order to promote
economic development of SC/ST entrepreneurs, a
new scheme called „Annal Ambedkar Business
Champions Scheme‟ will be launched in the coming
financial year. The new scheme will provide 35 per cent
capital subsidy and offer 6 per cent interest subvention
for loans to procure machineries and equipment.
A sum of Rs.100 crore is allocated for this scheme in the
Budget Estimates 2023-24.

45. To revive the Welfare Board for Puthirai

Vannars, Rs.10 crore will be provided to undertake
livelihood development and welfare activities.

46. A new scheme named „Iyothee Thass

Pandithar Habitation Development Scheme‟ will be
launched to ensure basic amenities in Adi Dravidar
habitations in both urban and rural areas and to bring
 22

about comprehensive socio-economic development.

The scheme will be implemented at a cost of
Rs.1,000 crore over a period of 5 yeaRs.

47. A sum of Rs.3,513 crore has been allocated

to the Adi Dravidar and Tribal Welfare Department in this
Budget.

Welfare of Differently Abled

48. It is well known that it was Muthamizharignar

Kalaignar who coined the term „Differently Abled‟. Given
the importance of this department, it is directly looked
after and works are closely monitored by the Hon‟ble
Chief Minister. RIGHTS project is being implemented at a
cost of Rs.1,763 crore with financial assistance from
World Bank. The main objective of this project is to
create an inclusive society by promoting accessibility
through creation of barrier-free structures and
employment opportunities through vocational training.
The project will be implemented in 15 districts in
2023-24. At the divisional level, 39 One Stop social care
service centres will be established to provide services
including disability assessment, certification and early
intervention. Further, 150 neighbourhood centres
manned by volunteers will be set up to provide treatment
at home and assistance in availing benefits under various
welfare schemes.
 23

49. For the benefit of the 6.84 lakh differently

abled persons across the State, the Hon‟ble Chief Minister
has already issued orders to increase the pension from
Rs.1,000 to Rs.1,500 and the maintenance allowance
from Rs.1,500 to Rs.2,000 for severely affected persons
with disabilities. Towards this, a sum of Rs.1,444 crore
has been allotted in the Budget.

50. The State Government is providing guarantee

and interest subsidy for the development of enterprises
of differently abled persons. Through these initiatives,
Tamil Nadu has facilitated loan assistance to 11,155
differently abled persons to the tune of Rs.50 crore
through National Handicapped Finance Development
Corporation this year, placing Tamil Nadu in the first
place in the Country.

51. The Government is developing a

comprehensive database of differently abled persons to
ensure effective delivery of benefits under Government
schemes. In the first phase, a database of 9,08,000
persons who are benefitting from various welfare
schemes has been created.
 24

Welfare of Backward Class, Most Backward class

and Denotified Communities

52. The Government has been taking various

steps to improve the functioning of Backward Class and
Most Backward Class hostels by upgrading infrastructure,
and providing nutritious food. In the last two years,
works for the construction of 9 hostels at a cost of
Rs.36.25 crore are being implemented. Further, based on
the requirements of students, fifteen school hostels have
been upgraded as college hostels.

53. In the Budget Estimates, a sum of

Rs.252 crore has been allocated towards Pre-Matric and
Post-Matric scholarship schemes. An amount of
Rs.305 crore has been earmarked towards distribution of
bicycles to students. A sum of Rs.1,580 crore
has been allocated to the Backward Class, Most Backward
Class, Denotified Communities and Minorities
Department.

Women and Children

54. Following the ancient Tamil tradition, many

leaders of the Tamil society have introduced pioneering
schemes to eradicate poverty and promote the
educational development of students. In 1920,
Sir Pitti Theagarayar, the then chairman of the Chennai
 25

Municipal Corporation introduced mid-day meal

programme in Chennai for the first time in the Country.
During Perunthalaivar Kamarajar‟s tenure as the Chief
Minister, the mid-day meal scheme was expanded at the
state level, marking a transformational change in the
history of education in Tamil Nadu. This was followed by
further efforts to eliminate hunger including the
Nutritious Meal Programme by Puratchi Thalaivar MGR
and the scheme to provide eggs along with nutritious
meals by Muthamizharignar Kalaignar.

55. At this juncture, it has come to light that

some children studying in Government schools are
suffering from stunted growth and malnutrition.
Recognizing that students may be unable to concentrate
on studies as they come hungry to schools without eating
breakfast, the Hon‟ble Chief Minister launched the
„Chief Minister‟s Breakfast Scheme‟ last year, which
is the landmark scheme of this Dravidian Model
Government founded on social justice. This historic
scheme was inaugurated on September 15, the birth
anniversary of Perarignar Anna.

56. The Chief Minister‟s Breakfast Scheme is

being implemented in 1937 Government Primary Schools
and it is benefitting 1,48,315 students studying from
Class I to Class V. Out of the 1,543 Elementary schools,
 26

where the scheme was implemented in the first phase,

the attendance of students has increased in 1,319
schools. The attendance has increased by 10per cent in
624 schools, 20per cent in 462 schools and 30per cent in
193 schools. In Tiruppathur, Perambalur, Ariyalur and
Tiruvarur districts, attendance of students has increased
in all the schools where the Breakfast scheme was
implemented. To translate the noble vision of the
Hon‟ble Chief Minister that we will make any sacrifice to
ensure that no child remains hungry while learning and
to make learning joyful and education universal,
the Chief Minister‟s Breakfast Scheme will be
expanded to cover all the 30,122 Government
primary schools in the State from the coming
academic year. Rs.500 crore is allotted for this
scheme in this Budget which will benefit 18 lakh
students studying from Class I to Class V.

57. Educated women are essential for a

prosperous and self-sufficient society. Well aware of this,
Muthamizharignar Kalaignar introduced the Moovalur
Ramamirtham Ammaiyar Marriage Assistance Scheme in
1989 to promote women's education. Realizing that
many girls from poor families in Tamil Nadu are
unable to continue higher education after completing
12th standard, this Government has redesigned the
scheme as Moovalur Ramamirtham Ammaiyar Pudhumai
 27

Penn Scheme, under which all girl students studying from

6th to 12th standard in Government schools are provided
Rs.1000 rupees per month for their higher education.
At present, 2.20 lakh girl students are benefitting under
this scheme every month. Compared to the year
2021-22, 29 per cent more girls have entered colleges
this year, which is an addition of 20,477 girl students.
The fact that the many girls who did not pursue higher
education after completing their schooling have now
enrolled in colleges is a testimony to the success of this
scheme.

58. The self-help group movement, that was

pioneered by Muthamizharignar Kalaignar in the country
in 1989 at Dharmapuri, has today blossomed into a
massive people‟s movement. This Government is
undertaking several measures for capacity building and
livelihood development of women self-help groups. In the
current year, so far, women self-help groups have
received bank loans of around Rs.24,712 crore. In the
coming financial year, a target of Rs 30,000 crore has
been set for credit linkage to SHGs.

59. Women entrepreneurs continue to face

difficulties in accessing adequate, timely credit and
marketing of products. To address these challenges, the
Government will establish an exclusive „Start-up
 28

Mission‟ for women. This mission will facilitate women

entrepreneurs in all aspects of their business.

Co-operation, Food and Consumer Protection

60. Since 2021-22, a total of 213 godowns have

been constructed with a storage capacity of 2.86 lakh MT
at a combined cost of Rs.238 crore to augment storage
capacity and minimize losses. Further, 12 godowns with a
storage capacity of 28,000 MT are being constructed at a
total cost of Rs.54 crore.

61. To meet the liabilities of the important

poll promises fulfilled by this Government, a sum of
Rs.2,393 crore for the waiver of agricultural loans, a sum
of Rs.1,000 crore for the waiver of jewel loans and a sum
of Rs.600 crore for waiving self-help group loans,
totalling an amount of Rs.3,993 crore has been allotted
in the Budget.

62. The Government will frame a comprehensive

long-term plan to carry out structural reforms in Tamil
Nadu Civil Supplies Corporation to improve efficiency in
operations and fiscal sustainability. An amount of
Rs.10,500 crore has been provided in this Budget
towards Food Subsidy in the Public Distribution System.
An allocation of Rs.16,262 crore has been made to the
 29

Co-operation, Food and Consumer Protection Department

in this Budget.

Water Resources

63. The Government is taking several efforts to

restore and rejuvenate the water bodies. Under
Tamil Nadu Irrigated Agriculture Modernisation Project,
the Government has sanctioned rehabilitation works in
341 tanks, 67 anicuts and 11 canals at an estimated cost
of Rs.462 crore. Further, repair, renovation and
restoration works are being undertaken in 309 tanks at
an estimated cost of Rs.258 crore.

64. Long term flood mitigation works are being

undertaken at a cost of Rs.184 crore in the districts of
Chennai, Tiruvallur, Kanchipuram and Cuddalore.
Of these, 9 works have been completed and 2 works are
in progress. In the current year, 12 flood mitigation
works have been undertaken in Chennai, Kanchipuram,
Chengalpattu and Thiruvallur districts at a total cost of
Rs.434 crore.

Animal Husbandry

65. The Tamil Nadu Animal Welfare Board, under

the chairmanship of the Hon'ble Chief Minister, has been
restructured to promote the welfare of animals in the
State. In order to control the burgeoning street dog
 30

population, it is necessary to set up Animal Breeding

Control Centres. To strengthen and improve the
effectiveness of the Animal Welfare Board, an amount of
Rs.10 crore has been provided in the Budget.
This fund will be used to carry out animal breeding
control activities, provide training to local Government
employees and implement animal welfare activities.

Welfare of Fishermen

66. This Government is empathetic to the welfare

and special needs of fisher folk and has increased the
special allowance during lean months to Rs.6,000 from
Rs.5,000. An allocation of Rs.389 crore has been made to
benefit 4.3 lakh beneficiaries for implementing the
fishermen welfare schemes such as Lean period
assistance, Ban period relief assistance and Savings
cum Relief schemes.

67. Coral reefs provide shelter and food to

fish and increase the probability of survival of fingerlings.
To improve the livelihood of country craft fishermen,
217 units of artificial reefs will be established at a
cost of Rs.79 crore in the 3 Palk Bay districts and
200 units will be set up at a cost of Rs.64 crore in other
districts.
 31

Environment, Climate Change and Forests

68. Due to increasing vagaries of climate change

and pressure caused by the burgeoning population, the
coastal ecosystem and the livelihood of coastal
population are likely to be severely affected in the near
future. The Government will implement the „Tamil Nadu
Coastal Restoration Mission‟ with the objective of
preventing sea erosion, reducing marine pollution and
conserving marine biodiversity. The mission will be
implemented with World Bank assistance at an
estimated cost of Rs.2,000 crore in the next
5 years.

69. A contiguous stretch of protected forests is

essential to protect endangered wildlife. The Government
will notify a new wildlife sanctuary „Thanthai Periyar
Wildlife Sanctuary‟, with an extent of 80,567 hectares
in the forest areas of Anthiyur and Gobichettipalayam
Taluks in Erode district to link the Nilgiris Biosphere
Reserve with Cauvery South Wildlife Sanctuary. This will
be the 18th wildlife sanctuary in the State.

70. Tamil Nadu is located in the Central Asian

Flyway and hosts a large number of migratory birds
every year. In order to promote conservation of birds,
encourage research in the field of ornithology and create
awareness about the role of birds in nature, the
 32

Government shall set up an „International Bird Centre‟

at Marakkanam at an estimated cost of Rs.25 crore.

71. Recognizing the importance of women‟s role

in tackling climate change, the Government will launch
the „Climate Warriors‟, a climate literacy programme, led
by women Self Help Groups in the State. In the first
phase, 500 SHGs will lead this green campaign to spread
awareness on environment and climate change.
The SHGs will be provided with electric autos at a cost of
Rs.20 crore towards this purpose. In the Budget,
Rs.1,248 crore has been allocated to the Environment,
Climate Change and Forests Department.

Rural Development

72. To upgrade 10,000 km rural roads over the

next two years for ensuring better connectivity in rural
areas and furthering economic development in villages,
the Government launched the Mudhalvarin Graama
Saalaigal Membattu Thittam this year. Under this
scheme, important link roads and bus plying roads will be
upgraded. In the upcoming financial year, works for
5,145 km of roads will be undertaken at an
estimated cost of Rs.2,000 crore.

73. Restoration of 6,618 water bodies has been

taken up in rural areas in the last two years at a cost of
 33

Rs.638 crore. Further, 10,000 water bodies in rural

areas consisting of minor irrigation tanks, ponds
and ooranies will be renovated in the next
two years at a cost of Rs.800 crore.

74. An online portal has been created to help

citizens pay House Tax, Professional Tax and Water
charges to Village Panchayats. Further, the Building Plan
and layout approval will also be made online.

75. Under the Mahatma Gandhi National Rural

Employment Guarantee Scheme in the current year,
30.87 crore person days have been generated so far at
an expenditure of Rs.10,914 crore. For 2023-24,
35 crore person days have been planned to be
generated under the scheme. An allocation of
Rs.22,562 crore has been made to the Rural
Development and Panchayat Raj Department in these
Budget Estimates.

Urban Development

76. The Government has been undertaking

projects for improving water supply, upgrading sewage
management infrastructure, rejuvenating water bodies
and creating green urban spaces under the AMRUT 2.0
scheme. So far, projects worth Rs.9,378 crore have been
sanctioned under the scheme, of which Rs.5,960 crore
 34

will be met by the State Government and local bodies.

Towards this scheme, Rs.612 crore has been allotted in
the Budget Estimates.

77. To ensure drinking water supply to the

people, the Government has undertaken 103 combined
water supply schemes under the Jal Jeevan Mission at a
cost of Rs.15,734 crore, of which the State will meet
54 per cent of the expenditure. Further, the Phase II of
Hogenakkal Combined Water Supply Scheme at a
cost of Rs.7,145 crore will be posed for external
funding assistance. In the coming financial year,
Rs.6,600 crore has been earmarked for implementation
of the Jal Jeevan Mission.

78. During the World Classical Tamil Conference

in 2010, Muthamizharignar Kalaignar announced setting
up of the Semmozhi Poonga in Coimbatore. The scheme,
which had been languishing for long, was revived
by the Hon‟ble Chief Minister who announced that the
world class „Semmozhi Poonga‟ will be set up in
Coimbatore in two phases. In the first phase, a
detailed project report has been prepared for
development of a botanical garden and other facilities
spanning 45 acres at a total cost of Rs.172 crore and
the works are expected to commence shortly.
 35

For this purpose, an amount of Rs.43 crore has been

allocated in these Budget Estimates.

79. As part of its endeavour to realize the goal of

Singara Chennai, the Government is committed to clean
and restore waterways including Adyar and Cooum. As
the first phase of these initiatives, the restoration of
Adyar river for a length of 44 km. will be taken up.
The project will include river cleaning activities such as
prevention of sewage from entering the river and
construction of Sewage Treatment Plants (STPs).
Further, attractive recreational facilities such as aesthetic
parks, green walkways, open air gymnasium and quality
cafeteria will dot the banks of Adyar river. This project
will be implemented at an estimated cost of
Rs.1,500 crore through PPP mode.

80. While upgrading the urban local bodies,

adjoining sub-urban areas were added and there is a felt
need to improve earthen roads in these areas. In the
last two years, out of the 4,540 km of earthen roads,
1,633 km have been taken up for improvement by the
Local Bodies. In the coming year, 1,424 km of earthen
roads will be upgraded at a total cost of Rs.1,211 crore.

81. The Government has been taking efforts to

improve the operation and maintenance of public toilets
in urban areas. As a pilot project, construction of new
 36

public and community toilets, refurbishing of existing

toilets and operation and maintenance have been taken
up through PPP mode in Greater Chennai Corporation at
a cost of Rs.430 crore. Based on the success of this
project, this will be further expanded to other
Corporations in the State.

82. The Government has been taking several

initiatives to create vibrant public spaces in the city.
CMDA will develop 30 acres of land in Island
Grounds with modern urban amenities such as urban
plaza, exhibition pavilions, landscaping, open air theatre
and food courts at a cost of Rs.50 crore.

83. To improve the quality of living in the

resettlement habitations constructed by Tamil Nadu
Urban Habitat Development Board, sports cum
recreation centres will be developed. These centres
will contain sports facilities, modern gymnasium,
multi-purpose community hall to conduct vocational
training and a library. Four such centres will be
developed in the coming year at Kannagi Nagar,
Perumbakkam, Navalur and Athipattu at a cost of
Rs.20 crore.

84. Coimbatore and Madurai are the largest

cities in Tamil Nadu after Chennai. It is imperative that a
Comprehensive Development Plan be prepared for
 37

the integrated, holistic and planned development of these

two cities and their suburban areas with the active
participation of stakeholders. These plans, “Ezhilmigu
Kovai” and “Ma-Madurai” will aim to develop highly
livable urban agglomerations with green parks, clean
streets, clean drinking water, safe mobility, industrial
estates and quality housing among others.
For preparation of these plans, Rs.1 crore each will be
provided.

85. An allocation of Rs.24,476 crore has been

made for Municipal Administration and Water Supply
Department and an allocation of Rs.13,969 crore has
been made to the Housing and Urban Development
Department in the Budget Estimates.

Flood Management

86. The Government‟s proactive planning and

execution of flood prevention works were appreciated by
all during the recent heavy rains. Completion of flood
mitigation works worth Rs.1,355 crore on a war footing
greatly reduced the impact of floods. To further control
the impact of floods and heavy rains in future by
strengthening infrastructure, works for flood mitigation
and desilting waterways to the tune of Rs.320 crore
will be undertaken in the coming year.
 38

Balanced Growth

87. Though Tamil Nadu has achieved high levels

of growth and development, there are still some blocks
which are backward in terms of socio-economic
indicators. To ensure growth and development in these
blocks in a time-bound and targeted manner through
convergence of schemes, the Government will launch a
new „Focus Blocks Programme‟. Under this scheme,
the most backward 50 blocks in the State, including
those in hilly regions, will be identified and
projects to the tune of Rs.5 crore will be taken up
in each block.

88. Chennai is one of the fastest growing cities in

the Country and ranks high in the „Ease of Living Index‟
published by various agencies. However, there are some
pockets in the city, particularly in the North Chennai
region, which are deficient in infrastructure and basic
amenities. To ensure balanced and equitable
development of the city, the Government will
implement the „Vada Chennai Valarchi Thittam‟
at a cost of Rs.1,000 crore over the next three
years. Under this scheme, action will be taken to identify
and address the infrastructure deficit and gaps in
development. The scheme will be implemented by
converging the funds of Chennai Metropolitan
Development Agency with the ongoing schemes.
 39

Highways

89. The Government accords high priority to

develop road infrastructure to propel economic growth in
the State. Under the Chief Minister‟s Road Development
Programme, widening of 148 km of roads to four lanes at
a cost of Rs.1,407 crore and 524 km to two lanes at a
cost of Rs.803 crore have been taken up.

90. A four-lane elevated flyover on

Anna Salai from Teynampet to Saidapet will be
taken up for construction at an estimated cost of
Rs.621 crore in the coming year. The flyover
constructed over the Chennai Metro Rail tunnels, in
consultation with international engineering experts, will
be a modern engineering marvel. On completion, it will
improve road safety and ease out traffic congestion in
several major junctions.

91. To ensure all-weather connectivity,

particularly during monsoon and floods, construction of
High-level bridges in lieu of 215 causeways has been
taken up at a cost of Rs.996 crore.

92. Allocations of Rs.1,847 crore towards

Chennai Peripheral Ring Road Project, Rs.1,500 crore for
the Chennai-Kanniyakumari Industrial Corridor Project
 40

and Rs.645 crore towards Tamil Nadu Road Sector

Project-II have been made in the Budget Estimates.

93. In the Budget Estimates, Rs.19,465 crore has

been allocated to the Highways and Minor Ports
Department.

Transport

94. Though the existing bus depots in the city are

located in prime locations, their full potential for
development remains untapped. It is proposed to
develop these bus depots as modern transit junctions to
improve passenger experience. In the first phase, bus
depots at Vadapalani, Thiruvanmiyur and
Vyasarpadi will be developed with an investment of
Rs.1,600 crore. In the second phase, three more bus
depots at Tambaram, Tiruvottriyur and Saidapet will be
upgraded with an investment of Rs.1,347 crore.

95. There is a need to continuously renew the

fleet of buses to provide quality and comfortable
transport services to the people. The Government will
procure 1,000 new buses and renovate 500 old
buses at a cost of Rs.500 crore.

96. In the Budget Estimates, allocation of

Rs.2,800 crore as subsidies towards free bus travel for
women, Rs.1,500 crore as subsidy for student concession
 41

in bus fare and Rs.2,000 crore as diesel subsidy has been

made.

97. Compared to many other States, the share of

Railways in the modal mix of the transportation system in
our State is very low. Addressing this situation, the
Government will create a Special Purpose Vehicle,
collaborating with Indian Railways, through TIDCO to
identify and undertake new railways projects in the
State.

98. An allocation of Rs.8,056 crore has been

made to the Transport Department in the Budget
Estimates.

Metro Rail

99. Works of Phase-II of the Chennai Metro Rail

Project for a length of 119 km in three corridors at a total
cost of Rs.63,246 crore are in progress. The first stretch
of elevated corridor from Poonamallee Depot to
Kodambakkam Powerhouse section is expected to be
ready for commissioning by December, 2025. A sum of
Rs.10,000 crore has been allotted towards Chennai Metro
Rail Project in this Budget.

100. Coimbatore City, known as the Manchester of

South India, is one of the fastest growing Tier-II cities in
India. It is home to a plethora of economic activities such
 42

as textiles, trade, commerce, technology, medical

facilities and manufacturing and is an embodiment of
entrepreneurial spirit. Keeping in view of the future
growth potential of the City, the Government has
decided to implement the Metro Rail project in
Coimbatore city. The Metro Rail project will be
implemented along Avinashi Road and
Sathyamangalam Road at an estimated cost of
Rs.9,000 crore.

101. To transform the ever lively and vibrant

Madurai as an engine of development for the southern
region, the Metro Rail project will be implemented
in the city at an estimated cost of Rs.8,500 crore.
Constructed underground through the central
parts of the town, the Metro Rail will connect
Thirumangalam to Othakadai. After obtaining
approval from Union Government, the Metro Rail projects
in these two cities will be implemented with funding from
external agencies.

Energy

102. With the objective of fulfilling the increasing

demand for power in the State, the Government intends
to double the installed capacity for power generation in
the State by adding 33,000 MW by 2030, giving high
priority to development of renewable energy sources. The
 43

present contribution of green energy to the State grid at

20.88 per cent is proposed to be increased to 50 per cent
by 2030 through additional capacity creation.

103. With solar energy potential of 20 GW,

onshore wind energy potential of 70 GW and offshore
wind energy potential of 30 GW, Tamil Nadu has
immense renewable energy resources and opportunities.
To transform Tamil Nadu into a green power house with
more than 50 per cent of power generation from
renewable sources by the year 2030, the Government
will create a dedicated Special Purpose Vehicle. Further, a
new policy on repowering windmills in the State will be
evolved.

104. Pumped storage hydroelectric projects will be

established under PPP mode to meet the peak hour
power demand in the State. The 500 MW pumped
hydroelectric storage project being constructed at
Kundah will be operational by 2024-25. Further,
15 more projects will be established under the PPP
mode with a total capacity of 14,500 MW at an
estimated cost of Rs.77,000 crore by 2030. The
Government will bring out a comprehensive policy to
promote investment in pumped hydroelectric
storage in the State. Further, on-going thermal
 44

power projects of 4100 MW will be completed

expeditiously.

105. To automate fetching of metered data, a

smart metering system will be installed with prepaid
functionality for all paid consumer connections under the
RDSS scheme.

106. As a result of the structural and systemic

reforms undertaken by the Government, the fiscal
position of TANGEDCO has improved slightly and
it is expected that the loss of TANGEDCO will be
reduced to Rs.7,825 crore in 2022-23 from Rs.11,955
crore in 2021-22. An allocation of Rs.14,063 crore
has been provided in the Budget Estimates
towards various subsidies provided to TANGEDCO.

Handloom and Textiles

107. This Government accords high priority to the

welfare of handloom and powerloom weavers. The free
electricity units have been increased from 200 to
300 units benefitting 76,356 handloom weavers.
Similarly, free electricity units have been increased from
750 to 1000 units, benefitting 1.64 lakh powerloom
weavers. The Hon‟ble Chief Minister had announced that
a new Textile Park will be established in the Western
region. Accordingly, this park will be established in
 45

Salem at a cost of around Rs.880 crore in an area

of 119 acres, with funding from Union and State
Governments and participation of private sector.

108. Acquisition of 1,052 acres of land for setting

up the Mega Textile Park at a cost of Rs.1,800 crore in
Virudhunagar district has been completed by SIPCOT.
This park which is being established with the support of
the Union Government will provide employment to
2 lakh persons and the works are expected to commence
shortly.

109. To upgrade the standard of handloom

products, use latest technologies and create market
linkages, the Government will establish
10 Mini Handloom Parks at a total outlay
of Rs.20 crore.

110. Further, a new Textile Policy will be

released with a focus on holistic development of the
entire value chain, latest design development and textile
machinery manufacturing.

Micro, Small and Medium Enterprises (MSMEs)

111. Registration and formalization of MSMEs is

vital for these enterprises to avail benefits of various
Government schemes. The Government will launch a
special drive to identify and register these enterprises in
 46

the State. This initiative would also lead to the creation

of a comprehensive database of all industries in the
State, including large industries. A sum of Rs.5 crore is
provided for conducting the survey.

112. Tamil Nadu has one of the largest number of

business incubators in the country. With a view to
supporting business incubators who propose to specialise
in areas like climate tech, rural tech, agri tech and
marine tech, StartupTN will assist them in raising funds
from various sources to set up Centres of Excellence and
will also bear up to 40 per cent of the cost of such
upgradation. A separate vertical will be created in
StartupTN to further the incubator eco-system in the
State.

113. In the current year, under the New

Entrepreneur cum Enterprise Development Scheme
(NEEDS), sanction has been given for subsidies worth
Rs.144 crore. I am happy to inform this house that this is
a new milestone in the implementation of the scheme so
far. Tamil Nadu is the only State which has mandated
that all Public Sector Enterprises be registered with the
Trade Receivables Discounting System (TReDS) Platform
assuring timely bill payment to Micro, Small and Medium
Enterprises.
 47

114. An allocation of Rs.1,509 crore has been

made to the Micro, Small and Medium Enterprises
Department in the Budget Estimates.

Industries

115. Tamil Nadu has been attracting substantial

investments in the last two years. Since May 2021,
221 Memoranda of Understanding (MoU) have
been inked for investment commitments worth
Rs.2,70,020 crore with employment opportunities for
3,89,651 persons.

116. To consolidate the benefits from these

investments, guided by the vision to steer Tamil Nadu
towards a one trillion-dollar economy by 2030, the next
Global Investors Meet (GIM) will be organized
in Chennai on 10th and 11th January 2024. This will
be a platform that will showcase the investment friendly
climate prevailing in the State and also its immense
strengths and attractiveness as an investment
destination. It will also facilitate our industries, MSMEs
and Startups to connect with the global markets and
investors. An allocation of Rs.100 crore has been made
for the Global Investors Meet.

117. This Government is committed to ensuring

balanced industrialisation of all parts of the State. Among
 48

the MoUs signed recently, 85 projects will be set up in

industrially backward districts with an investment
commitment of Rs.1,44,028 crore and employment
potential for 2,14,478 persons.

118. This Government has announced 10 new

sector-specific policies for planned industrial development
in the following sectors :-

(i) Fintech

(ii) Research and Development

(iii) Life Sciences

(iv) Export Promotion

(v) Aerospace and Defence Industries

(vi) Footwear and Leather Products

(vii) Electric Vehicles

(viii) Logistics

(ix) City Gas Distribution

(x) Ethanol Blending

119. Tamil Nadu, especially Chennai –

Sriperumbudur Corridor, occupies the pole position in
automobile manufacturing in the entire Country.
Tamil Nadu remains the forerunner in production of
 49

electric vehicles, which are rapidly emerging as an

alternative to the fossil fuel-based vehicles. I am proud
to inform this August House that 46 per cent of the
electric two-wheelers sold last year in India were
manufactured in Tamil Nadu. The largest electric
two-wheeler manufacturing factory in the world is
established in the State. The recently launched Electric
Vehicle Policy will ensure that Tamil Nadu remains as the
leader in manufacturing of all types of automobiles.

120. Apart from attracting substantial industrial

investments, the State is committed to creating more
employment opportunities, particularly for women. The
Government is according high priority to labour-intensive
sectors like non-leather footwear which is ideally suited
for this purpose. Two factories manufacturing non-leather
footwear are already in operation in Bargur and Cheyyar.
Hon‟ble Chief Minister recently laid the foundation stone
of two more industries, one at Tindivanam with
employment potential for 5,400 women and another at
Perambalur with employment potential for 31,600
women. Further, two industries are proposed to be
established in Ranipet and Kallakurichi districts
with employment potential for 32000 women.
To provide further fillip to this sector, Government has
unveiled the Footwear and Leather Policy and a
memorandum of understanding has been signed by
 50

Guidance Tamil Nadu with Taiwan Footwear

Manufacturers Association.

121. The Government has recently launched the

Ethanol Blending Policy with the objective of promoting
ethanol production in the State. The policy aims to
increase the income of farmers and improve financial
health of sugar mills. The policy will facilitate in attracting
investments of Rs.5,000 crore for ethanol production.

122. New industrial parks will be developed in

Virudhunagar, Vellore, Kallakurichi, and Coimbatore at an
estimated cost of Rs.410 crore for providing employment
opportunities to nearly 22,000 persons. Further, an
industrial housing facility will be established in the
SIPCOT Industrial Park in Gangaikondan at an estimated
cost of Rs.50 crore to accommodate 1,500 employees.

123. An allocation of Rs.3,268 crore has been

made to the Industries Department in this Budget.

Information Technology

124. The Government is committed to provide all

services digitally to citizens in an easy and transparent
manner without human interface and will launch the
„Simple Gov‟ initiative to achieve this end. As part of this
initiative, digitisation of various services and internal
processes of Government departments are being taken
 51

up expeditiously. To ensure compliance with standards

and time-bound development of software, an
e-Governance fund of Rs.100 crore will be created. The
fund will be utilized to finance key e-Governance
initiatives of Government departments.

125. To establish better connectivity and provide

various digital services at an affordable cost, the
Government will set up a “Unified Digital
Infrastructure”, that will create high speed optical fibre
network from the State Headquarters to all districts. This
project will be implemented at an estimated cost of
Rs.400 crore. This will not only facilitate delivery of
tele-medicine, education, agriculture extension and other
services to far flung villages of the State but also will
ensure uninterrupted internet facilities.

126. In this internet age, information is the basis

for power and productivity. To establish social justice and
an inclusive society, it is vital that information and
opportunities are made accessible to all. Hence, in the
first phase, it is proposed to provide free Wi-fi zones
in popular public places in the cities of Chennai,
Tambaram, Avadi, Coimbatore, Madurai,
Tiruchirappalli and Salem.

127. To promote Tamil Nadu as a global hub for

IT/ITeS and to meet the increasing demand for quality
 52

office space, the Government will establish

“Tamil Nadu Tech City (TNTech city)” at Chennai,
Coimbatore and Hosur. To facilitate functioning of
IT/ITeS, GCC, FinTech and Startups, the TN Tech city will
house centre of excellence, innovation plaza, convention
centres, recreation facilities and other necessary
infrastructure.

128. In the year 2000, Muthamizharignar

Kalaignar ushered the IT revolution in the State by
setting up the first TIDEL Park. To promote growth of IT
and ITeS sectors in Tier II cities of the State, the
Government is setting up 7 Neo-TIDEL parks across the
State. Further, IT Parks, each with an approximate
built up area of one lakh sq.ft, will be set up at
Erode, Tirunelveli and Chengalpattu. These parks will
provide employment opportunities for 4,000 persons.

Tourism

129. The tourism sector in Tamil Nadu has been a

major contributor to the economic growth of the State.
Tamil Nadu has been ranked first with the highest
domestic tourist volume in the Country during the
current year. Under the „Tourism Destination
Development Scheme‟, a sum of Rs.75 crore has been
sanctioned in the current year towards infrastructure
development at various tourist locations across the State.
 53

Projects to upgrade amenities at Pitchavaram,

Poompuhar and Hogenakkal have been sanctioned at an
estimated cost of Rs.55 crore.

130. To give a fillip to the tourism sector, a

Tourism policy has been formulated in consultation with
stakeholders and will be released soon.

Minorities Welfare

131. The annual grant for repair and renovation

of Mosques and Dargahs has been increased from
Rs.6 crore to Rs.10 crore in the current year. Rs.2 crore
has been sanctioned towards renovation of the famous
Nagore Dargah. Similarly, the grant provided for repair
and renovation of Churches will be increased from
Rs.6 crore to Rs.10 crore. Many heritage shrines
including St. George Church, Madurai, Schwartz Church,
Thanjavur and Christ Church, Salem will be taken up for
renovation.

132. The Government is taking effective measures

to safeguard waqf properties. During the last year,
properties worth Rs.52 crore have been retrieved.
Further, steps are being taken to create a database of
Waqf Board properties.
 54

Hindu Religious & Charitable Endowments

133. The Government has been taking earnest and

continuous efforts to protect and safeguard temples and
their properties. Since this Government assumed
office, it has retrieved 4,491 acres of encroached
Temple lands worth Rs.4,236 crore. A massive
exercise is underway to record the geo-coordinates of
temple lands and prepare a digital land resources
database. So far, this exercise has been completed for
1,08,000 acres.

134. In the current year, renovation works were

completed and consecration ceremony conducted in
574 temples. Master Plan works are being undertaken
in Tiruchendur Temple for Rs.305 crore, Periapalayam
Bhavani Amman Temple for Rs.166 crore and
Rameswaram Ramanathaswamy Temple at an estimated
cost of Rs.146 crore. In the coming financial year,
consecration ceremony will be conducted in 400 temples.
In the coming year, master plan works at a total cost of
Rs.485 crore will be taken up in Palani, Thiruthani and
Samayapuram temples.

Grievance redressal

135. The Government attaches high priority for

immediate and quality redressal of public grievances.
During this year, out of the 17.7 lakh petitions received
 55

under Mudhalvarin Mugavari, 17.3 lakh petitions have

been disposed. A quality monitoring unit has been set up
to receive feedback from applicants, based on which
further action is taken.

136. This Government is committed to bringing

administration closer to people instead of people
approaching Government offices. A new scheme
„Kala Aayvil Muthalamaichar‟ is launched by this
Government in which Hon‟ble Chief Minister personally
visits districts and conducts review meetings and
inspections. In order to ensure that Government
schemes and services reach the last mile, a new
scheme will be launched in all village panchayats
and wards in urban areas. Under this scheme,
outreach camps will be conducted with the participation
of all departments. The entire administrative machinery
will reach out to the people and provide the required
Government services.

Land Administration

137. The Government is focussed on creating a

credible and convenient system of land records which will
be immensely useful to land owners. A seamless software
is being created integrating Revenue, Registration, Town
and Country Planning and CMDA to allow automatic patta
transfer for every plot of an approved layout as soon as
 56

the sale is registered. In this financial year, the land

records pertaining to grama natham will be
computerized, and the end to end process of patta
transfer for natham lands will be made online.

Social Security

138. To ensure social safety net to the

marginalized and disadvantaged, this Government has
taken several measures. Since May 2021, 5,76,725 new
beneficiaries have been sanctioned social security
pensions such as old age pension and widow pension.
In addition to this, one lakh eligible applicants will be
given social security pensions. With this, the total
number of beneficiaries availing social security pensions
will be increased to 35.8 lakhs. A sum of Rs.5,346 crore
has been allocated for social security pensions in this
Budget.

Police

139. Tamil Nadu continues to be a haven of peace,

tranquility and harmony owing to this Government‟s
stellar management of law and order. The Government
has been taking stringent measures to curb the menace
of drug abuse and smuggling. Special operations were
carried out and 13,491 peddlers were arrested and their
bank accounts were frozen.
 57

140. In a move to further increase transparency in

administration, the CCTV system in all police stations
across the State will be upgraded in two phases at a total
cost of Rs.38.25 crore.

141. Recent attempts made by anti-social

elements to create panic among migrant workers by
circulating false videos through social media were
thwarted by the swift and stringent actions taken by the
Government. 11 cases have been filed against these
anti-social elements and arrests have been made. The
strict action taken by the Government is appreciated by
everyone. Further, 4 lakh workers were personally visited
by a team of district administration and police officials,
to counter the fake videos and factual position was
highlighted. Multiple confidence building measures were
taken with the support of Governments of Bihar and
Jharkhand to assure the workers about the safe working
conditions and peaceful ambience in the State.

Welfare of Government Employees

142. This Government is committed towards the

welfare of its employees and pensioners. Old quarters of
Government employees will be rebuilt in a phased
manner. In the upcoming financial year, Rs.100 crore
worth of works will be taken up. Considering the rise in
construction costs, the maximum ceiling for the house
 58

building advance will be increased to Rs.50 lakh from

Rs.40 lakh per employee from the upcoming financial
year.

143. Under the Tamil Nadu Government

Pensioners‟ Family Security Fund Scheme, a sum of
Rs.50,000 is sanctioned to the family members on the
death of a pensioner. Post COVID, the number of claims
under this scheme has increased substantially.
Considering the welfare of the families of pensioners,
this Government had provided a special allocation of
Rs.25 Crore in 2021-22 and Rs.50 crore in 2022-23.
Further, the Government will provide a special allocation
of Rs.25 crore to clear the backlog claims. Government
has provided Rs.25 lakh each to the families of
401 frontline workers, who lost their lives due to COVID
and Rs.100 crore has been disbursed from Chief Minister
Public Relief Fund for this purpose.

Registration

144. Guideline value which was increased on

01-04-2012 was revised downwards uniformly by 33 per
cent with effect from 09-06-2017 and simultaneously,
the registration fee was increased from 1 per cent to
4 per cent for the deeds of sale, gift, exchange and
non-family member settlement. There has been constant
requests from various stakeholders to revise the
 59

guideline value in tune with the market prices and to

reduce registration fee. The Government has constituted
a committee to suggest the revised guideline value. The
survey number-wise revision is expected to take time.
Since, the market value has risen steeply, as an interim
measure, the Government has decided to revise the
guideline value to the rates prevailing till 8-6-2017
and to reduce the registration fee to 2 per cent.
Henceforth, for deeds of sale, gift, exchange, 5 per cent
stamp duty, 2 per cent transfer duty and 2 per cent
registration fee will be applicable. For non-family
settlements, 7 per cent stamp duty and 2 per cent
registration fee will be applicable. This measure will
greatly benefit the poor and middle class especially those
who avail bank loan to buy homes.

Magalir Urimai Thogai

145. This Dravidian Model Government has

planned and taken many initiatives to promote equality
of women, who form half of the population. The Dravida
Munnetra Kazhagam Governments have always
implemented schemes to improve the status of women in
education, governance, positions of responsibility,
economy and society at large. From giving equal rights in
property and reservation in local bodies then, to free bus
travel scheme for women now, we have always taken
care to protect the rights of women and promote their
 60

welfare. On the same lines, we had promised in the

Election Manifesto that Rs.1,000 will be given every
month to women heads of households. We not only
follow the maxim: “we do what we say – we say what
we will do”, but in addition we have also implemented
many schemes which we have not promised. The
Hon‟ble Members of this House are aware of this.
Schemes such as Makkalai Thedi Maruthuvam, Pudhumai
Penn and Naan Mudhalvan did not find place in the
Election Manifesto. The Hon‟ble Chief Minister
who has implemented such innovative schemes
has been impressing upon us that the promise to provide
„Magalir Urimai Thogai‟ should also be implemented.
Based on this, I am very happy to announce that
Rs.1,000 per month will be provided to women
heads of eligible households from the upcoming
financial year. Women heads of families who have been
affected adversely by the steep increase in cooking gas
price by the Union Government and the overall price rise,
will be greatly benefited by this scheme. The month of
September has a special significance to the Dravidian
movement. The scheme will be launched by the
Hon‟ble Chief Minister on 15th September, the birth
anniversary of Perarignar Anna, the great son of
Tamil Nadu and a brilliant scholar. It is also
noteworthy that the scheme is being launched in the
centenary year of Muthamizharignar Kalaignar.
 61

The operational guidelines outlining the eligibility to avail

the benefits under this scheme will be evolved and
released soon. Rs.7,000 crore has been allotted in
the Budget for this scheme which will be a game
changer in the socio-economic life of women of the State.
 62

Part - B

Finances of the State Government

Hon‟ble Speaker,

146. Having highlighted the major reforms and

initiatives of this Government, I turn now to the
aggregate fiscal position of the State.

147. In order to arrest the declining trend of

State‟s Own Tax Revenue as a percentage of GSDP,
the Government has been undertaking several resource
mobilization measures including rationalization of rates
and improvement in collection efficiency. As a result, the
State‟s Own Tax Revenue is estimated to increase to
Rs.1,51,870.61 crore in the Revised Estimates, as
compared to Rs.1,42,799.93 crore in the Budget
Estimates 2022-23. In the coming year, it is estimated
that the State‟s Own Tax Revenue will further increase to
Rs.1,81,182.22 crore, which is a growth of 19.30 per
cent over the Revised Estimates. The State‟s Own Non-
Tax Revenue is estimated at Rs.15,309.40 crore in the
Revised Estimates, similar to the projections in Budget
Estimates 2022-23. In the coming year, it is estimated at
Rs.20,223.51 crore, which is an increase of 32.10 per
cent over the Revised Estimates.
 63

148. The Share of Central taxes is estimated at

Rs.38,731.24 crore in Revised Estimates and at
Rs.41,664.86 crore in this Budget, in line with the
projections in the Union Budget. While there is an
increase, it continues to be far less than what should
have been devolved to the states but for the
indiscriminate levy of cesses and surcharges by the Union
Government. The Grants-in-Aid from the Union
Government is estimated at Rs.39,748.42 crore in the
Revised Estimates (including the payment of GST
Compensation arrears of Rs.16,214.83 crore) and at
Rs.27,444.64 crore in this Budget, which includes a sum
of Rs.4,572.82 crore that is expected as arrears in GST
Compensation in the coming year.

149. Despite multiple representations from the

States, the Union Government has refused to extend
the original GST Compensation period (of Guaranteed
14 per cent Year-over-Year growth) beyond the 5 years
that expired on June 30th, 2022 and hence States will be
deprived of a vital source of Revenue from now on.

150. It should be noted that, excluding the

settlement of GST Compensation arrears, the total funds
received from the Union Government (the aggregate of
both Share in Taxes and Grants-in-Aid) annually have
dropped by roughly 1per cent of GSDP when compared to
 64

2014-15, which translates to a reduction of about

Rs.24,840 crore in 2022-2023 & Rs.28,327 crore in
2023-2024.

151. In aggregate, the Total Revenue Receipts are

projected to be Rs.2,45,659.67 crore in the Revised
Estimates, which is higher by 6.16 per cent over the
Rs.2,31,407.28 crore estimated in Budget Estimates
2022-23. In the coming year, the Total Revenue Receipts
are projected at Rs.2,70,515.23 crore, which is an
increase of 10.12 per cent over the Revised Estimates.

152. On the expenditure front, the total Revenue

Expenditure is estimated to reduce to Rs.2,76,135.68
crore in the Revised Estimates as compared to
Rs.2,84,188.45 crore in the Budget Estimates 2022-23,
on account of prudent fiscal management. The
Government has ensured adequate allocation towards its
developmental needs, as evidenced by the increase in
estimates for subsidies and transfers to Rs.1,18,841.01
crore in the Revised Estimates against Rs.1,13,643.10
crore in the Budget Estimates 2022-23. In the coming
year, the total Revenue Expenditure is expected to be
Rs.3,08,055.68 crore.

153. As a result of the decline in Total Revenue

Expenditure and the projected increase in Revenue
Receipts, the Revenue Deficit is estimated to be
 65

Rs.30,476.01 crore in the Revised Estimates, compared

to Rs.52,781.17 crore in the Budget Estimates 2022-23.
This is a reduction of around Rs.31,850 crore in the last
two years, which is an unprecedented feat.

154. Since the year 2015-16, when the

Revenue Deficit breached the 1per cent GSDP mark
for the first time, the finances have deteriorated
continuously with Revenue Deficit increasing in
leaps and bounds to reach 3.28per cent in 2020-21.
This Government, through reforms of
unprecedented scale and scope, has not only
managed to arrest, but actually reverse the
declining trend by bringing down Revenue Deficit
by record levels to 1.23 per cent of the GSDP, close
to the ratio of 2015-16.

155. In the coming year, despite the inclusion of

an amount of Rs. 7,000 crore for Magalir Urimai Thogai
scheme, one of the biggest cash transfer schemes
implemented by any State Government in the history of
this country, the Revenue Deficit of the state has been
contained at 1.32 per cent of the GSDP much below the
levels of 2017-18. In the Budget Estimates 2023-24,
the Revenue Deficit is estimated at Rs.37,540.45 crore.
 66

156. In this Budget, the Government has given a

further push to the capital expenditure in the State. An
allocation of Rs.44,365.59 crore has been provided for
capital expenditure, which is an increase of 15.69 per
cent over the Revised Estimates. The total capital outlay
of the State including Net Loans and Advances is
estimated at Rs.54,534.46 crore in the Budget.

157. The Fiscal Deficit has been estimated at

Rs.74,524.64 crore in the Revised Estimates, which is
3.00 per cent of the GSDP. This is a reduction of around
Rs.15,589.07 crores as compared to the Budget
Estimates 2022-23. The Government has managed to
achieve the golden target of containing Fiscal Deficit at
3per cent of the GSDP, as required by the Tamil Nadu
Fiscal Responsibility Act (2003). This has been a
herculean task given the Fiscal Deficit of 4.61 percent
that was inherited by this Government while assuming
office. For the coming year, the Fiscal Deficit is estimated
at Rs. 92,074.91 crore, which is 3.25 per cent of the
GSDP.

158. It should be noted that for the first time since

this Government assumed office, the budget calls for
borrowings up to the full limit allowed by the Fifteenth
Finance Commission for the year (3per cent of GSDP) as
well as the additional 0.25per cent of GSDP that Tamil
 67

Nadu is likely to qualify for with respect to Power Sector

Reforms.

159. I am duty-bound to note that we face 3

structural problems that have increased since 2014, that
we must correct as soon as possible:

a. State‟s Own Revenues are still at roughly

7 per cent of GSDP, far below the almost
10 per cent level of 2006 – 2007, and this
leads to repeated Revenue Deficits. We must
find a way to raise revenues (as a
percentage of GSDP) to eliminate the
Revenue Deficit and create a surplus for
more progressive schemes and investments

b. We must use data to ensure that the State‟s

revenue spending is targeted and does not
lead to inflation, which is a hidden tax on the
common person

c. We must improve our ability for discretionary

spending by reducing the proportion of
non-discretionary spending which currently
takes up almost 85per cent of the State‟s
Own Revenue.

160. In the year 2023-24, the Net Borrowings

are projected at Rs.91,866.14 crore, including
 68

Rs.82,625.96 crore of Net Open Market Borrowings and

Rs.9,240.18 crore from other sources. Therefore, on
31.03.2024, the Total Outstanding Debt will be
Rs.7,26,028.83 crore and the Debt-GSDP ratio will be
25.63 per cent. This is well within the 29.1 per cent for
2023-24 limit set by the Fifteenth Finance Commission.

161. The Medium-Term Fiscal Plan projects that

we will soon achieve the targets set in the Tamil Nadu
Fiscal Responsibility Act, 2003. The Medium-Term Fiscal
Plan may be taken as having been read as part of the
Speech.

162. The stellar performance exhibited by the

Government in the last two years in ensuring fiscal
consolidation and debt sustainability has now allowed the
state the much-needed fiscal space to embark on a path
of expansion, high growth and development. In order to
fulfill the promises to the people of Tamil Nadu and to
usher the State in the path of one trillion-dollar economy,
the Government will maximize the resource envelope by
focusing on improvement in revenue receipts and optimal
utilization of the fiscal space.

163. Hon‟ble Speaker, this is the second full

Budget presented by this Government, after it assumed
office less than two years ago. The consistent
improvement of the fiscal situation over the last two
 69

years stands in stark contrast to the continuous decline

experienced by our state since 2014. As indicated in the
Medium-Term Fiscal Plan, we are well on our way to
becoming a Revenue-neutral State again, which will form
the ideal condition for investment and growth.

164. But the true measure of the great

improvement in governance under the leadership of the
Hon‟ble Chief Minister is that we have achieved this
improvement despite rapidly-increasing interest costs,
and the increasingly stringent barriers imposed upon our
fiscal administration by the Union Government.

165. In parallel to these fiscal improvements, the

Hon‟ble Chief Minister constantly urges us to fulfil the
promises made to the people and to ensure that schemes
are designed keeping in mind that people from all walks
of society, especially women and the marginalised,
should be able to access opportunities and support. I
wish to point out that this Government has announced
new projects and schemes involving Expenditure of over
One lakh crore rupees since assuming office on May 7th,
2021.

166. As a result, the people of Tamil Nadu have

great confidence and expectations in this government. In
fact, we believe that people‟s expectations have further
increased as a result of the prudent, effective
 70

administrative measures undertaken by this Government

in the last two years, and the several innovative schemes
it has introduced. We have prepared this Budget trying to
largely fulfil the objectives of the Hon‟ble Chief Minister
and the expectations of the people.

167. I would like to express my heartfelt gratitude

to the Economic Advisory Council to the Hon'ble Chief
Minister, consisting of internationally acclaimed experts,
for taking out their time and offering their invaluable
advice in the preparation of this Budget. Informed by
their sound suggestions, the Government will continue to
take all necessary measures for the growth and
development of the State.

168. At this juncture, I wish to convey my

gratitude and appreciation to Thiru. N. Muruganandam,
IAS, Additional Chief Secretary, Finance Department and
all officials of the Finance Department who have worked
tirelessly for the preparation of this Budget.

169. “ Kayal ezhudhiya imaya nettriyin

Ayal ezhudhiya puliyum villum”

The famous lines from the Silappathikaram above,

refer to the greatness of the famous Pandya, Chola and
Chera kings, and note that they wielded suzerainty and
left their mark on the brow of the Himalayas, as well as
 71

the world. Following the legacy of these great Tamil

Empires, this Government continues to achieve in a
manner that sets an example for the entire nation, and is
making indelible imprints in the hearts of the people. I
promise that this Government under the Hon‟ble Chief
Minister will fulfil its historic duty to the Tamil society
with the fullest support of the people of the State. Once
again, I express my heartfelt gratitude to the Hon‟ble
Chief Minister who constantly gave me guidance, advice
and encouragement.

170. Hon‟ble Speaker, I commend the Budget

Estimates for the year 2023-2024 for the approval of this
August House.

ேொழ் தமிழ்
கேல் தமிழ்நொடு

Dr. Palanivel Thiaga Rajan

Minister for Finance and Human
Resources Management

Chennai,
20th March 2023,
Subakirudhu, Panguni-6
Thiruvalluvar Aandu 2054
 72

APPENDIX

MEDIUM TERM FISCAL PLAN

The State Government is required to place a

Medium Term Fiscal Plan (MTFP) before the Legislative
Assembly along with the Budget in accordance with
Section 3(1) of the Tamil Nadu Fiscal Responsibility Act,
2003 (TNFRA). As per Section 3(2) of the said Act, the
MTFP shall set forth a multi-year rolling target for the
prescribed fiscal indicators like Revenue Deficit, Fiscal
Deficit and Debt to GSDP ratio, specifying the underlying
assumptions made to arrive at those projections.
Complying with the said provisions under the Tamil Nadu
Fiscal Responsibility Act, 2003, a Medium-Term Fiscal
Plan for the period from 2023-24 to 2025-26 is hereby
placed before the Legislative Assembly.

Objectives

This MTFP outlines the fiscal roadmap, aimed at

fiscal consolidation and debt sustainability, which will be
achieved by adherence to the following fiscal norms
outlined by the Fifteenth Finance Commission:

 Fiscal Deficit to Gross State Domestic Product

(GSDP) within 3 per cent from 2023-24 onwards.

 An additional borrowing of 0.5 per cent of GSDP for

a period of four years from 2021-22 to 2024-25 on
fulfillment of Power Sector Reforms.
 73

 Outstanding Debt to GSDP within 29.1 per cent in

2023-24, 28.9 per cent in 2024-25 and 28.7 per
cent in 2025-26.

Economic scenario

The Indian Economy has recovered to an extent

from the pandemic-induced shock. The growth for the
current year is estimated at 7 percent in constant terms.
However, amidst a grim outlook with global uncertainties
caused by the war in Ukraine, high inflation and fears of
recession, the growth of the Indian economy for 2023-24
is pegged at 6.5%.

In comparison, Tamil Nadu is estimated to have

grown at around 14 per cent is nominal terms in 2022-
23. This has been enabled by proactive initiatives taken
by the Government to attract investment, generate
employment and carry out policy initiatives for
comprehensive and sustainable growth. For the year
2023-24, it is projected that the nominal GSDP growth of
the State will be sustained at the level of 14%, as
projected for 2022-23. In the subsequent years, the
nominal GSDP growth is estimated at 13% and 12% for
2024-25 and 2025-26 respectively.

I. Revenue Receipts

The Total Revenue Receipts of the State

Government, including the Central Transfers, are
 74

estimated to be Rs.2,70,515.23 crore in Budget

Estimates 2023-24 as against the Revised Estimates of
Rs.2,45,659.68 crore in 2022-23. The estimates for
2024-25 is estimated to be Rs.3,11,239.07 crore and
Rs.3,59,395.72 crore in 2025-26 which indicates a
growth of 15.05 per cent and 15.47 per cent respectively.
The important components are discussed below:

1. State‟s Own Tax Revenue

The State‟s Own Tax Revenue (SOTR) is estimated

to be Rs.1,51,870.61 crore in the Revised Estimates
2022-23. It is estimated to increase to Rs.1,81,182.22
crore in the Budget Estimates for 2023-24. The SOTR is
estimated to be Rs.2,13,795.02 crore in 2024-25 and
Rs.2,50,140.17 crore in 2025-26. The growth rates of
State‟s Own Tax Revenue are estimated to be 18 per cent
in 2024-25 and 17 per cent in 2025-26 based on present
trends in tax collection and economic outlook.

2. Non-Tax Revenue

The State‟s Own Non-Tax Revenue has been

estimated at Rs. 20,223.51 crore in the Budget Estimates
for 2023-24. This shows an increase of 32.10 per cent
compared to Revised Estimates 2022-23. Based on
various resource augmentation measures and
improvements in collection efficiency being undertaken
by the Government, the Non-Tax Revenue is estimated to
 75

grow at 18 per cent in 2024-25 and 17 per cent in

2025-26.

3. Share in Central Taxes

Tamil Nadu‟s share in Central Taxes is estimated at

Rs.41,664.86 crore in Budget Estimates 2023-24 as
against Rs.38,731.24 crore in the Revised Estimates
2022-23. This is based on the estimates in the Union
Budget 2023-24. Tamil Nadu‟s share of the Central Taxes
collected is estimated to be Rs. 48,331.24 crore in 2024-
25 and Rs. 55,580.92 crore in 2025-26 by assuming a
growth rate of 16 percent in 2024-25 and 15 per cent in
2025 -26.

4. Grants-in-Aid from the Union Government

The Grants-in-Aid from the Government of India

have been estimated at Rs.27,444.64 crore in the Budget
Estimates 2023-24. The substantial reduction is owing to
the stoppage of GST Compensation from 30.06.2022
onwards. This has resulted in a shortfall of around
Rs.20,000 crores per annum. Further, from the current
year onwards, funds for several centrally sponsored
schemes are being directly released to the bank accounts
of implementing agencies and local bodies or
beneficiaries (in the case of scholarships), without being
received into the Consolidated Fund of the State. For the
financial years of 2024-25 and 2025-26, Grants-in-Aid
 76

has been projected at Rs.25,249.07 crore and

Rs.25,754.05 crore respectively.

II. Revenue Expenditure

The Revenue expenditure is estimated at

Rs.3,08,055.68 crore in Budget Estimates 2023-24 which
shows an increase of 11.56 per cent over Revised
Estimates 2022-23. The Revenue expenditure is
estimated to be Rs.3,29,822.18 crore in 2024-25 and
Rs.3,58,177.64 crore in 2025-26.

The important components are discussed below:

The expenditure on account of Salaries is a

committed expenditure and has been estimated to
be Rs.77,240.31 crore in the Budget Estimates
2023-24. This shows an increase of 14.14 per cent
over the Revised Estimates 2022-23. The
expenditure under Salaries is expected to be
Rs.84,964.34 crore in 2024-25 and Rs.94,460.78
crore in 2025-26 based on hike in Dearness
allowance and anticipated new recruitments.
The Non-wage Operations and Maintenance is
estimated to be Rs.16,272.49 crore in the Budget
Estimates 2023-24. This expenditure has been
estimated at Rs.17,574.29 crore in 2024-25 and
Rs.20,331.72 crore in 2025-26.
The expenditure outlay on account of committed
expenditure on Pensions and Retirement benefits is
estimated to be Rs.36,973.02 crore in Budget
Estimates 2023-24. Considering the trends in
 77

retirement, the expenditure under Pension and

Retirement benefits is estimated at Rs.39,930.86
crore in 2024-25 and Rs.45,524.64 in 2025-26.
The expenditure on account of Subsidies and
Transfers is estimated to be at Rs.1,22,088.19
Crore in the Budget Estimates 2023-24. The
expenditure under Subsidies and Transfers is
estimated at Rs.1,25,426.34 crore in 2024-25 and
Rs.1,29,204.59 crore in 2025-26. This takes into
account expenditure for Magalir Urimai Thogai,
increased subsidy to TANGEDCO due to tariff
revision, and increased transport subsidies, among
others.
The interest payments for public debt raised in the
previous years is a committed liability of the
Government, and it continues to increase every
year. The expenditure on account of interest
payments is estimated at Rs.55,431.49 crore in the
Budget Estimates 2023-24. This expenditure has
been projected at Rs.61,876.73 crore in 2024-25
and Rs.68,598.91 crore in 2025-26.

III. Capital Account

In the Budget Estimates for 2023-24, an amount of

Rs.44,365.59 crore has been provided as Capital
Expenditure as against Rs.38,347.39 crore in the Revised
Estimates 2022-23. This shows an increase of 15.69 per
cent. The capital expenditure is estimated to be
Rs.64,683.15 crore in 2024-25 and Rs.90,301.69 crore in
2025-26. This takes into account the increased capital
spending due to sanctions of Combined Water Supply
 78

Schemes under Jal Jeevan Mission and Metro rail projects

in Chennai, Coimbatore and Madurai. This shows the
commitment of the State to constantly improve the
allocation for growth-oriented expenditure while
maintaining fiscal discipline. The net loans and advances
are estimated at Rs.10,168.87 crore in Budget Estimate
2023-24. This is estimated to increase to Rs.12,764.97
crore in 2024-25 and at Rs.18,481.84 crore in 2025-26.

IV. Revenue Deficit and Fiscal Deficit

The Revenue Deficit in the Budget Estimates for

2023-24 is estimated at Rs.37,540.45 crore. In view of
the revenue augmentation measures including
improvement in collection efficiencies and rate
rationalization, the Revenue Deficit is expected to reduce
to Rs.18,583.12 crore in 2024-25 and subsequently lead
to a surplus of Rs.1,218.08 crore in 2025-26. This will
create additional space for capital expenditure in the
State.

The Fifteenth Finance Commission has permitted

the states to maintain the ratio of Fiscal Deficit to GSDP
as 3.0 per cent in 2023-24 and 2024-25. In addition,
it has provided an additional space of 0.5% of GSDP
during 2021-22 to 2024-25 on fulfillment of required
Power Sector Reforms. In the Budget Estimates for 2023-
24, the Fiscal Deficit is estimated at 3.25 per cent of
 79

GSDP. In the forthcoming years, Fiscal Deficit to GSDP

ratio is estimated to be 3.0 per cent in 2024-25 and 3.0
per cent in 2025-26 which is within the norms prescribed
by the Fifteenth Finance Commission.

V. Borrowings

The estimates for receipt and repayment of

borrowings have been finalized on the basis of overall
borrowing ceiling fixed by the Government of India.
The Government plans to borrow a total amount of
Rs.1,43,197.93 crore during 2023-24 and make
repayment of Rs.51,331.79 Crores. As a result, the
outstanding debt as on 31st March 2024 will be
Rs.7,26,028.83 crore. This constitutes 25.63 per cent of
GSDP in 2023-24. The Outstanding Debt as a percentage
of GSDP is expected to be 25.63 per cent in 2024-25 and
25.82 per cent in 2025-26, which are well within the
norms prescribed by the Fifteenth Finance Commission.
Thus, the State aims to maintain debt sustainability as
part of its fiscal consolidation roadmap.

VI. Guarantees

The outstanding guarantees for each year have to

be restricted at a level of 100 per cent of the Total
Revenue Receipts in the preceding year or 10 per cent of
the GSDP, whichever is lower. The outstanding
guarantees as on 31st March, 2022 were 44.33 per cent
 80

of Total Revenue Receipts in the preceding year and

4.22 per cent of GSDP. The outstanding risk weighted
guarantees for each year have to be kept at a level of 75
per cent of the Total Revenue Receipts of the preceding
year or 7.5 per cent of GSDP, whichever is lower. The
outstanding risk weighted guarantees as on 31st March,
2022 stood at 11.18 per cent of Total Revenue Receipts
of the preceding year and 1.06 per cent of GSDP.

Conclusion

In the current economic scenario, Tamil Nadu‟s

growth is higher than that of the national GDP, which is a
positive sign. This growth advantage is expected to
continue in the coming year, though a potential slow-
down in the global economy, as many anticipate, could
reduce all growth rates at the State and National level.

Through steps such as resource augmentation and

improvement in revenue collection efficiency, the State
will attempt to maintain a healthy growth in Revenue
Receipts. With fiscal consolidation as the fundamental
principle, the State will continue to adhere to TNFRA
norms and eliminate its revenue deficit in the coming
years, thereby enabling increasing investment and
expenditure in growth and welfare-oriented areas.

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