The Comptroller and Auditor-General (CAG) of India has assessed that the Tamil Nadu government, during 2023-24, showed improvement only in one out of three targets fixed in the area of fiscal indicators.
The progress recorded by the State was in the outstanding liability-Gross State Domestic Product (GSDP) ratio. Against a target of 29.1%, the figure was lowered to 28% in the year.
Elimination of revenue deficit by 2025-26, achievement of fiscal deficit (FD)-Gross State Domestic Product (GSDP) ratio at 3% by March 31, 2025, and bringing down debt-GSDP ratio to 29.1% were the targets determined for each of the three fiscal parameters: revenue, fiscal and primary deficits, according to the CAG report on the finances of the State government, which was tabled in the Assembly on Friday.
Giving an account of the trends over the five years from 2019-20 to 2023-24, the CAG pointed out that the debt-GSDP ratio increased from 24.35% in 2019-20 to 28.83% in 2021-22, decreased marginally to 28.39% during 2022-23, and stood at 28% in 2023-24. The debt included Off Budget Borrowing (OBB). Despite the fall, the FD-GSDP ratio stood at 3.32% during 2023-24, which was “much higher” than the target fixed under the Tamil Nadu State Fiscal Responsibility and Budget Management Act.
Revenue deficit, as a percentage of the GSDP, went up by 0.15% during 2023-24 over the previous year.
The revenue deficit rose from ₹36,215 crore (2022-23) to ₹45,121 crore (2023-24), about 71.5% higher than Medium Term Fiscal Plan projections, whereas the target was to eliminate it by 2025-26.
Published – October 18, 2025 01:16 am IST
