Revenue deficit to GSDP ratio reduced due to DMK govt.’s effective financial management: Thangam Thennarasu

Finance Minister Thangam Thennarasu during Assembly session . File
| Photo Credit: PTI

Tamil Nadu Minister for Finance Thangam Thennarasu on Wednesday told the Assembly that the revenue deficit to Gross State Domestic Product (GSDP) ratio has been reduced from 3.28% in 2020-21 to 1.17% in Budget Estimates 2025-26 because of the DMK-led government’s effective financial management.

The Minister was responding to AIADMK MLA C. Vijayabaskar, during the general discussion on Finance and Agriculture Budget 2025-26, who raised questions on the increasing outstanding debt and measures taken to bring down the revenue deficit.

Mr. Thennarasu said the revenue deficit to GSDP ratio was 1% in 2016-17 and increased to 3.28% in 2020-21 during the AIADMK regime. Meanwhile, the Leader of the Opposition Edappadi K. Palaniswami intervened and said the revenue deficit in 2020-21 increased due to COVID-19 induced lockdown as businesses and other revenue generating sources, including tax revenue, declined.

Acknowledging Mr. Palaniswami’s view, the Finance Minister said, “When the DMK came to power in 2021, we were also facing the similar problem. However, Tamil Nadu’s economy remained resilient even when the world was facing economic slowdown post COVID-19, due to effective financial management of our government.” He said the DMK government viewed revenue expenditure to its pioneering initiatives as social investment.

Meanwhile, Mr. Vijayabaskar also alleged that the cards of nearly four lakh beneficiaries under the Chief Minister’s Comprehensive Health Insurance Scheme were deactivated. Further he blamed the government for not taking measures to start new medical colleges in the State. Minister for Health and Family Welfare Ma. Subramanian said only the DMK government took measures to create infrastructure facilities in the newly inaugurated 11 medical colleges in the State.