Tamil Nadu Finance Minister Thangam Thennarasu is all set to present the state budget for the financial year 2024-25 on Monday. The budget’s theme is ‘Crossing obstacles and marching towards growth’ and it is being presented just days before the announcement of the 2024 general elections. The ruling DMK government under Chief Minister M.K. Stalin has been focused on implementing populist schemes, and it remains to be seen whether this budget will be well-received by the public.
The ‘Kalaignar Magalir Urimai Thittam’, which grants Rs 1,000 per month to more than 1.5 crore women heads of families, is a flagship social welfare program implemented by the DMK government. The state budget will need to address measures to raise funds for such recurring expenditures as well as focus on revenue augmentation to meet the expenditure for various schemes.
Tamil Nadu Governor R.N. Ravi has highlighted the state’s fiscal challenges in his customary address, pointing out the impact of flood-related disasters and constraints on resource mobilization following the implementation of GST. Despite measures such as an increase in excise duty on liquor and changes in the registration charges of flats, the state is likely to fall short of its revenue targets due to the impact of the floods and destruction caused in many southern districts.
The State’s Own Tax Revenue (SOTR), which accounts for a significant portion of Tamil Nadu’s total revenue, is a key concern as the state aims to meet its budget estimates. With the upcoming general elections, the presentation of the state budget holds significant importance as it will reflect the government’s priorities and fiscal approach in the lead up to the polls.
In conclusion, the presentation of the state budget for the financial year 2024-25 comes at a crucial time for the ruling DMK government in Tamil Nadu. The measures outlined in the budget to address revenue challenges and fund populist schemes will be closely scrutinized, especially as the state prepares for the announcement of the 2024 general elections. The outcome of the budget presentation will undoubtedly have an impact on the government’s standing and public perception as it navigates through a challenging fiscal landscape.
