Tamil Nadu Budget: State’s outstanding debt pegged at ₹10.98 lakh crore in Revised Budget Estimates
Tamil Nadu Finance Minister N. Marie Wilson on Wednesday (August 5, 2026) said the overall outstanding debt of the State is estimated to be ₹10,98,768
Tamil Nadu Finance Minister N. Marie Wilson on Wednesday (August 5, 2026) said the overall outstanding debt of the State is estimated to be ₹10,98,768 crore in the Revised Budget Estimates (RBE) 2026-27 as against ₹10,99,458 crore in the Interim Budget Estimates (IBE) 2026-27. Presenting the Revised Budget for 2026-27 in the Legislative Assembly, Mr. Wilson said the outstanding debt includes Public Debt and the Public Account Liability of the State. “It may be noted that the Public Debt includes an amount of ₹9,523 crore, which should be reflected in the accounts of the Union government after the approval of the Chennai Metro Rail Phase II project as a Central Sector Project,” he said. Tamil Nadu Budget 2026 LIVE updates: Finance Minister Marie Wilson announces one-sovereign gold coin for brides in TVK-led govt.’s maiden Budget The outstanding debt-to-GSDP ratio in the RBE 2026-27 is estimated at 27.01% as compared to 27.03% in the IBE 2026-27. In the RBE 2026-27, State’s Own Tax Revenue (SOTR) is estimated at ₹2,26,740 crore, compared to the IBE 2026-27 projection of ₹2,29,579 crore.
“Aligning with the observations in the White Paper on Fiscal Management regarding past over-estimations, projections have been recalibrated downward in the RBE,” said Mr. Wilson, adding SOTR is projected to expand at a growth rate of 9.78% in 2026-27 over the Revised Estimates (RE) of 2025-26. The State’s Own Non-Tax Revenue is estimated at ₹27,704 crore in the IBE, as compared to ₹26,265 crore in the RE 2025-26. In the RBE 2026-27, State Own Non-Tax Revenue is estimated at ₹27,835 crore. VB-G RAM G scheme The grants-in-aid receivable from the Union government were estimated at ₹24,762 crore in the IBE 2026-27. The Union government has introduced a new scheme, Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), in place of the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS). An amount of ₹7,586 crore has been provided under this scheme with a 60:40 sharing pattern. Further, a sum of ₹3,461 crore that is due to be released to Tamil Nadu under the MGNREGS has also been included in the RBE for 2026-27.
Grants-in-aid from the Centre are now estimated at ₹32,922 crore in the RBE. The share in central taxes was estimated at ₹56,819 crore in the RE 2025-26. The same was estimated at ₹62,531 crore in the IBE 2026-27, based on the Union government’s allocation in its Budget. The same has been retained in the RBE 2026-27. In aggregate, the Total Revenue Receipts, projected at ₹3,09,698 crore in the RE 2025-26 and ₹3,44,575 crore in the IBE 2026-27, have now been estimated at ₹3,50,027 crore in the RBE 2026-27. This is an increase of ₹5,452 crore over the IBE, he said. Expenditure revision On the expenditure front, Total Revenue Expenditure has been revised upward to ₹4,05,802 crore in the RBE 2026-27 from ₹3,93,272 crore in the IBE 2026-27. This increase is attributable to mandatory outlays for new flagship commitments, agricultural crop loan waivers, 200 units of free electricity, and the Thaimaaman Thanga Mothiram scheme. The overall Capital Expenditure, projected at ₹59,562 crore in the IBE 2026-27, is estimated at ₹56,985 crore in the RBE 2026-27.
The BriefWire