The Tamilaga Vettri Kazhagam (TVK)-led regime is looking at mobilising resources without increasing taxes and user/consumption charges. It is in the process of identifying areas for resource mobilisation.
While the ruling party, in its manifesto, has promised several welfare measures and freebies to people, it is also conscious of the fiscal position in which the government finds itself in. As per the unaudited provisional figures available with the office of Comptroller and Auditor General (C&AG), revenue deficit (revenue expenditure exceeding revenue receipts) for 2025-26 stood at about ₹ 66,383 crore, representing around 22.8% of the total revenue receipts for the year.
As regards fiscal deficit (FD), the figure is ₹ 1,20,574 crore, accounting for 3.42% of Gross State Domestic Product (GSDP) against the ideal figure of 3%. FD refers to the gap between total expenditure (revenue and capital expenditure including net loans and advances) and total receipts (revenue receipts and capital receipts).
It is in this context that the new government is mulling measures to enhance its receipts. At the same time, those in charge of public finances are under pressure from certain sections of the government which are pushing for a crop loan waiver, as promised in the TVK’s manifesto, which states that farmers owning up to five acres of land are to be given a full waiver and for those having more than five acres, a 50% waiver.
As part of the steps to improve its revenue, the government is planning to plug loopholes in mining of natural resources. For example, with regard to quarrying or mining of river sand, instances of under billing are reported to be rampant, resulting in a substantial loss of revenue to the exchequer.
In respect of prohibition and excise, the authorities are conscious of gaps in implementation of the end-to-end computerisation project of the Tamil Nadu State Marketing Corporation Limited (TASMAC), and want to ensure a demand-driven retail sale of liquor products instead of products pushed by vested interests. As it has been brought to the attention of the government that in the name of carrying out the direction of Chief Minister C. Joseph Vijay with regard to the closure of TASMAC retail shops, field officials have done it indiscriminately.
Another area is the system of licensing in respect of ethanol, which is a plant-based fuel. This fuel helps save foreign exchange by reducing crude oil import. The present administration is receptive to the idea of liberalising the system of licensing. However, it is not for methanol, which was said to be the main reason for causing several hooch tragedies, including one in Kallakurichi in June 2024.
In respect of electricity, the administration is planning to tighten the system of procurement of power and materials such as coal and transformers. As per an estimate, the government can save ₹ 10,000 crore annually if rules are followed scrupulously.
The government expects all planning bodies across the State to emulate the Chennai Metropolitan Development Authority (CMDA)’s recent circular on streamlining the processes for planning permission.
A former policy maker suggests that the system of issuing completion certificates be scrapped, as there is no such arrangement in many States. Likewise, the government needs to take a re-look at Sections 37-A and 37-B, under which it gives permission to industrial units, commercial establishments and public trusts for keeping excess lands. A positive list of reasons can be prepared to liberalise the operation of the sections.
A former Additional Director General of Police says that the government should make hassle-free the process of obtaining documents such as community certificates, legal heir certificates and pattas, which have a direct bearing on the common man. The Chief Minister should be a hands-on person, supervising regularly and closely how the public grievance redressal mechanism operates, he advises.
Published – May 24, 2026 05:30 am IST
