Fri Mar 14 10:02:05 UTC 2025: ## Tamil Nadu Unveils Budget Projecting Robust Growth, Increased Borrowing

**Chennai, March 14, 2025** – Tamil Nadu Finance Minister Thangam Thennarasu today presented the state’s Medium Term Fiscal Plan (MTFP) and Budget Estimates for 2025-26, outlining ambitious growth targets and significant borrowing plans.

The MTFP reveals that the state government intends to borrow ₹1,62,096.76 crore during the upcoming fiscal year, while repaying ₹55,844.53 crore. This will result in an outstanding debt of 26.07% of the Gross State Domestic Product (GSDP).

Despite the substantial borrowing, the budget projects continued strong economic performance. Minister Thennarasu highlighted Tamil Nadu’s position as a leading growth engine, driven by its manufacturing sector, particularly in electronics and electric vehicles (EVs). Electronics exports have surged from $1.66 billion in 2021-22 to $5.37 billion in 2023-24, with projections exceeding $12 billion in 2024-25.

The budget allocates ₹3,73,204 crore for total revenue expenditure, against projected revenue receipts of ₹3,31,569 crore. A significant ₹57,231 crore is earmarked for capital expenditure. The projected fiscal deficit for 2025-26 is estimated at 3% of the GSDP, down slightly from the revised estimate of 3.26% for 2024-25. The budget reflects the state government’s commitment to sustained public and private investments to fuel further economic growth.

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