CAG Report Highlights Improvement in Tamil Nadu’s Debt-GSDP Ratio Despite Rising Revenue Deficit
The Comptroller and Auditor-General (CAG) of India’s report on Tamil Nadu’s finances for 2023-24 reveals mixed results. While the state successfully lowered its debt-to-GSDP ratio to 28%, meeting one of its three fiscal targets, other indicators showed decline. The revenue deficit increased by 0.15% of GSDP compared to the previous year, reaching ₹45,121 crore. Additionally, the Fiscal Deficit-to-GSDP ratio stood at 3.32%, which is higher than the 3% target set under the Tamil Nadu State Fiscal Responsibility and Budget Management (FRBM) Act. The debt figure includes Off-Budget Borrowings (OBB).
Key Points
- Tamil Nadu met the target of bringing the debt-GSDP ratio below 29.1%, achieving 28%.
- The revenue deficit rose to ₹45,121 crore, which is 71.5% higher than Medium Term Fiscal Plan projections.
- The state failed to meet the fiscal deficit target of 3% of GSDP by March 2025.
- The CAG report emphasizes the need to eliminate the revenue deficit by 2025-26.
Exam Facts
- Debt-GSDP ratio: 28% (2023-24)
- Revenue deficit: ₹45,121 crore
- Fiscal Deficit-GSDP ratio: 3.32%
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