Tamil Nadu’s GST collection performance over the past six months has raised concerns about the state’s economy and the financial priorities of the TVK government. The latest figures show signs of recovery in October, but the growth reportedly remained in single digits.
The slow recovery is a concern because it comes despite the festive season, extended school holidays and an increase in tourist arrivals. These factors were expected to support business activity and improve tax collections.
The criticism also points to GST growth in states such as Karnataka, Maharashtra, Gujarat and Haryana. According to the statement, these states continue to record stronger growth despite having economic activity comparable to Tamil Nadu. It also argues that post-settlement revenue growth should not be used to explain the difference because the comparison is between the same periods of two different years.
The statement further raises questions about the state’s capital expenditure. It claims that spending across several government departments has slowed over the past six months. Lower government spending could affect economic activity because public projects create demand for businesses, workers and suppliers.
Tamil Nadu accounts for 15.43% of India’s total factories, ranking first among states in factory numbers. However, its share of the country’s manufacturing Gross Value Added (GVA) stands at 10.26%, placing it third nationally, according to the figures cited in the statement.
The statement also points out that Tamil Nadu’s share of national manufacturing GVA was around 10.3% about 15 years ago. It argues that the state’s contribution has remained almost unchanged, while other states are gradually narrowing the gap.
It also calls for greater attention to districts that continue to face economic challenges. Regional imbalance reports prepared by the Tamil Nadu State Planning Commission may show differences between districts, but the statement argues that reports alone cannot address these gaps.
The government is being urged to introduce special programmes and targeted support to improve economic activity in districts that need greater attention. The central demand is for the TVK government to improve GST revenue, monitor capital spending and support balanced economic growth across Tamil Nadu.
