Need at least two years to fix State’s fiscal: TN FM

Tamil Nadu Finance Minister N Marie Wilson said fiscal position of the State is in the red and noted that the repair has been started. However, he said it would need at least two years to bring the financial administration back to the track of fiscal prudence.

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“We have been handed a treasury box that is overburdened with debt and sub optimal income with leaking holes,” he said in his speech while presenting TVK government’s maiden budget for 2026-2027.

Wilson said since the formation of the TVK government, it has made continuous efforts to plug leakages in both revenue and expenditure side.

The measures have enabled the State Government to create at least Rs.1,500 crore on the revenue side so far, he said.

“We expect large fiscal space creation on the expenditure side, due to savings in the cost of procurement of goods and services,” Wilson said.

He noted that a calibrated balance between welfare scheme investments in human capital and investments in physical capital and infrastructure is necessary.

“These however require resources and fiscal space, and without sustained effort by the Government in this regard, it is impossible to sustain welfare schemes,” Wilson said.

Government has already taken action towards mobilization of nearly Rs.15,000 crore through various measures and has also constituted a high level Revenue Augmentation Committee under the chairman ship of renowned economist Montek Singh Ahluwalia, he said.

“We will also constitute a similar high level Expenditure Reforms Committee to advise the State Government on rationalizing expenditure,” Wilson said.

This will be achieved through enhancing the productivity of the service delivery apparatus of the State and reviewing all welfare schemes by evaluating their positive impact on the target beneficiary groups and ensuring that all people who need State intervention truly benefit, he said.

The Minister also clarified that the scope of the Committee would not be restricted to reducing expenditure, but to rationalising them, which would also include expanding welfare schemes that have good positive externalities and benefits to the society and the State in the long run.

Wilson expressed confidence in TVK government attaining success in bringing the State’s fiscal back on track.

“Tamil Nadu will emerge as a State that has fiscally prudent governance for balanced and inclusive economic growth,” he said.

“Our Government believes that we need to look forward to at least 15 years of sustained growth through consistent policies and providing clean and efficient governance,” Wilson said.

 

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