EconomyTuesday, 4 August 2026·The Hindu - Tamil Nadu
Tamil Nadu finances in 2026-27: revenue growth, central transfers and SOTR trends
A 2026 Tamil Nadu budget primer tracks GSDP, own revenue, central transfers and the shrinking share of State Own Tax Revenue.
Key highlights
Direct fact
In August 2026, Tamil Nadu’s new government is set to present its first budget, while data in the primer shows State Own Tax Revenue at 5.8% of GSDP in 2024-25, down from 8.3% in 2012-13.
Key specifics
- 2021-22 to 2025-26: Tamil Nadu widened its gap with Gujarat from 8% to 18% in GSDP size.
- 2025-26: Tamil Nadu’s economy rose to about 69% of Maharashtra’s, up from 66% in 2021-22.
- 2024-25: Tamil Nadu’s own revenue grew by around 11%, before slowing to 9% in 2025-26 RE.
- 2023-24 and 2024-25: Central transfers fell, after the GST Compensation Cess ended in 2022-23.
- 2011-12 to 2024-25: Central transfers as a share of GSDP declined from 2.7% to 2.2%.
Exam lens
Economy data interpretation, GSDP comparison, revenue receipts, SOTR and central transfers are the key TNPSC angles; expect a question on which fiscal indicator fell to 5.8% of GSDP in 2024-25.