PMK Shadow Economic Survey

Notes

• Shadow Economic Survey highlights a 13% shortfall in State’s Own Tax Revenue (SOTR) against projections.
• Major SOTR components including GST, stamp duty, registration charges, and motor vehicle tax failed to meet targets.
• State economy grew by 10.83% in 2024-25, yet this growth did not translate into proportional revenue increases.
• Non-tax revenue for 2025-26 was 17.31% below budget estimates and lower than the previous year.
• Revenue expenditure has risen sharply while capital expenditure remained stagnant, limiting public infrastructure creation.
• Revenue deficit is projected to widen due to welfare schemes, including farm loan waivers and electricity subsidies.
• Total state debt is projected to reach ₹16.70 lakh crore by the end of the current year.
• Interest payment burden for 2026-27 is estimated at ₹80,000 crore for the state and ₹48,875 crore for PSUs.
• Policy suggestions include increasing SOTR to 7% of GSDP over five years and raising annual economic growth to 12%-13%.
• Recommendations for fiscal federalism include increasing the Centre’s shareable tax pool to 50% and merging cesses/surcharges into the divisible pool.

Part of a longer story

This is day 5 of 13 in Tamil Nadu public finance and SPSU fiscal health, which has been running since 23 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

• Tamil Nadu Budget Session Before
• TVK-led Tamil Nadu government budget and administration After
• The whole story 13 entries