Tamil Nadu’s Own Tax Revenue, which accounts for over 70% of total revenue, is likely to be affected by the floods in Chennai and the Southern districts.
For 2023-24, the State’s Own Tax Revenue (SOTR) is projected to be ₹1,81,182 crore, as per the Budget estimates, which is a 20.61% growth from 2022-23. The SOTR accounts for 78.9% of Tamil Nadu’s total revenue. The key components of SOTR include collection from State Goods and Services Tax (SGST), taxes on vehicles, revenue from Stamps and Registration Fees, VAT on petrol and diesel and liquor, The State Excise Duties (which reflect liquor revenue).
So far in 2023-24 (Till October 2023), Tamil Nadu’s Own Tax Revenue was ₹84,930.9 crore, as per the provisional figures from the Comptroller and Auditor-General (CAG). This constitutes around 46.88% of the Budget estimates.
The floods would definitely have an adverse impact on all major components of SOTR. The impact cannot be quantified at the moment, a senior State government official said.
Commercial Taxes account for 73.3% of the SOTR. Stamps and registration account for 14.1%, State Excise account for 6.5%, while taxes on Motor Vehicles account for 4.9% and other taxes contribute 1.2%.
Tamil Nadu has estimated revenue from Commercial Taxes at ₹1,32,813 crore for 2023-24. Revenue from Stamps and Registration Fees is projected at ₹25,567 crore, while State Excise is projected at ₹11,819 crore. Taxes on vehicles are estimated at ₹8,783 crore for 2023-24.
In 2021-22, also SOTR was affected due to pandemic and unprecedented floods in certain districts. The SOTR estimate was revised to ₹1,21,857.55 crore from ₹1,26,644.15 crore in the Budget estimates for 2021-22.
Any shortfall in State’s revenue will also impact the projected revenue deficit number. Revenue deficit is when the revenue expenditure exceeds revenue receipts. Tamil Nadu has estimated a revenue deficit of ₹37,540 crore for 2023-24, factoring into the expenditure on account of the Kalaignar Magalir Urimai Thogai Thittam.
