Tamil Nadu's Own-Tax Revenue Effort Has 'Collapsed', Says White Paper

A White Paper on Tamil Nadu's fiscal performance reveals a significant deterioration in the state's own-tax revenue collection. The state's own tax revenue to Gross State Domestic Product (SOTR-to-GSDP) ratio declined from 5.93% to 5.45% over the last five years.

This represents the lowest ratio in the state's recorded history and marks the steepest decline when compared with three peer states used as benchmarks. The sharp contraction in tax effort underscores challenges in the state's revenue mobilisation capacity.