TAMILNADU: BUDGET 2008 – 2009

STATE BUDGET ANALYSIS

PART I: STATE FINANCES

Macro-economy
With a Gross State Domestic Product (GSDP) of Rs. 223,528 crores (current prices) in 2006-07, Tamil Nadu ranks fifth among major states of India, behind Maharashtra (Rs. 432,413 crores), Uttar Pradesh (Rs. 279,762 crores), West Bengal (Rs. 236,044 crores), and Andhra Pradesh (Rs. 236,034 crores), and almost the size of Gujarat (Rs. 247,681 crores). When measured in constant prices also, Tamil Nadu’s rank is 5. Tables 1 and 2 give the GSDP (current prices) and GSDP (constant prices) for key states, respectively. If projections are made based on average growth rates prevailing over the last five years, then Gujarat could be placed just ahead of Tamil Nadu.

Table 1: Gross state domestic product (current prices)

(Rs.crore)

Source: National Income Statistics, CSO; Estimates by BIU

Table 2: Gross state domestic product (constant prices)

(Rs.crore)

Source: National Income Statistics, CSO; Estimates by BIU

In terms of per capita net state domestic product (PCNSDP) current prices, Tamil Nadu ranks 12th in the country (Rs. 29,958), behind Haryana, Maharashtra and Punjab among major states. Among southern states, Tamil Nadu is just behind Kerala, but higher than the other three states. Estimates of GSDP growth as well as population growth reveal that Gujarat could lead in per capita NSDP over the next two years (Table 3).

Table 3: Per capita net state domestic product (current prices)

(Rs.)

Source: National Income Statistics, CSO; Estimates by BIU

Revenue receipts
In terms of quantum of revenue receipts at Rs. 51,236 crores (budget 2008-09 estimates), Tamil Nadu stands behind Maharashtra (Rs. 79,911 crores) and Andhra Pradesh (Rs. 70,927 crores). The state has shown a marginal revenue surplus, unlike Karnataka and Kerala, which has been a traditionally revenue deficit state. (Table 4)

Table 4: Revenue receipts/ expenditure and deficit position
(budget estimates 2008-09)

(Rs.crore)

Source: State Budget documents