The newly elected Tamilaga Vetri Kazhagam (TVK) government of Tamil Nadu is still testing the water and all eyes are on its first Budget, which is set to be presented this Wednesday. In Q1 of FY27, the first quarter under the regime (the party took over in early May), own tax revenue collections have continued to grow at a strong pace but revenue expenses have begun creeping higher. Spending on capex has been 20 per cent lower compared to the same quarter last fiscal, while debt has continued to grow. This comes at a time when the State has constituted an expert committee under eminent economist Montek Singh Ahluwalia to help augment State coffers.Published on August 3, 2026
TN finances under new government
Tamil Nadu's new TVK government faces budget challenges with rising expenses, growing debt, and a focus on revenue enhancement.














