Glossary
Plain-language definitions of the fiscal terms used on this site.
BE (Budget Estimate)
What the government plans to raise or spend in a year.
Budget Estimate is the figure presented to the legislature in March before the fiscal year begins. It is a plan, not a record of money already raised or spent. Charts on this site that use BE are marked planned and rendered with a diagonal hatch.
RE (Revised Estimate)
A mid-year update of the Budget Estimate.
Revised Estimate is published partway through the fiscal year, after the government has a clearer view of receipts and expenditure trends. It supersedes BE for that year but is itself eventually replaced by Actuals.
Actuals
What the government actually raised and spent.
Actuals are reported after the fiscal year closes, audited by the Comptroller and Auditor General, and published with a 12 to 18 month lag. The deficit-trend and peer-states charts on this site show Actuals.
Revenue deficit
Revenue expenditure minus revenue receipts, when expenditure is higher.
A revenue deficit means the state is borrowing or drawing down to meet day-to-day running costs (salaries, pensions, interest), not just to invest in new assets. The TN FRBM Act mandates a revenue surplus, so the chart's ceiling sits at zero.
Fiscal deficit
Total spending minus total receipts other than borrowing.
Fiscal deficit captures the gap the state must fill by borrowing in a given year. It is a broader measure than revenue deficit because it includes capital expenditure. The FRBM ceiling for TN is set as a percentage of GSDP.
FRBM
Fiscal Responsibility and Budget Management Act — caps the state's borrowing.
The TN FRBM Act 2003 sets statutory ceilings on revenue deficit, fiscal deficit, and outstanding debt as a share of GSDP. These ceilings appear as horizontal reference lines on deficit charts.
GSDP (Gross State Domestic Product)
The total value of goods and services produced in the state in a year.
GSDP is the state-level analogue of GDP. Fiscal indicators like fiscal deficit and outstanding debt are usually expressed as a percentage of GSDP so they can be compared across years and across states of different size.
Per-capita
Divided by the state's population — a rupee figure per resident.
Crore figures are abstract for most readers; per-capita rupees are easier to compare. Per-capita figures on this site use RBI Handbook population projections and surface a sensitivity band of plus or minus three percent.
Own tax revenue
Taxes the state collects directly — GST share, sales tax, stamp duty, motor vehicles tax.
Own tax revenue is the largest component of TN's revenue receipts. It excludes the share of central taxes devolved to the state and grants from the centre.
Grants from centre
Centre-to-state transfers earmarked for specific schemes or general support.
Grants in aid include Finance Commission grants, centrally sponsored scheme grants, and special purpose grants. Unlike share in central taxes, grants are typically tied to a specified use.
Non-tax revenue
State income that is not a tax — interest, dividends, fees, royalties.
Non-tax revenue is the smallest of TN's four revenue streams on this page's donut chart. It includes returns on state investments, profits from state PSUs, and user charges.
Crore
Indian numbering unit — one crore is ten million (10,000,000).
The Indian numbering system groups by lakh (one hundred thousand) and crore (ten million). All rupee figures on this site use crore by default, with lakh appearing only for amounts smaller than one crore.
Lakh
Indian numbering unit — one lakh is one hundred thousand (100,000).
One hundred lakh equals one crore. This site uses lakh only when an amount falls below one crore, to keep small figures readable.
Major head
A four-digit code for a top-level budget category in the government accounts.
Major heads are the broadest level of expenditure classification in Indian government accounts (for example, 2202 for Education). Each major head can be broken down into minor heads and sub-heads.
Minor head
A three-digit subdivision of a major head.
Minor heads sit one level below the major head. Together with the major head they identify the specific programme or activity under which an expenditure is booked.
Capital expenditure
Spending that creates lasting assets — roads, buildings, equipment, loans given.
Capital expenditure is recorded separately from revenue expenditure because it is treated as investment rather than running cost. Capital outlay and loans disbursed both fall under capital expenditure in government accounts.
Revenue expenditure
Day-to-day running costs — salaries, pensions, interest, subsidies.
Revenue expenditure does not create any lasting asset. It funds the recurring cost of running government services. The deficit-trend chart on this page contrasts revenue receipts with revenue expenditure across ten years.
Interest payments
What the state pays on its outstanding debt each year.
Interest payments are the single largest revenue expenditure item on TN's books in FY 2023-24. They are a contracted obligation and cannot be reduced by in-year decisions; only repaying or restructuring debt changes them.
Pensions
Payments to retired state government employees.
Pensions are a committed revenue expenditure. TN's pension bill is the third-largest expenditure category in FY 2023-24 after interest payments and education.
Subsidies
State support that lowers the price of a good or service for citizens or producers.
Subsidies appear under multiple major heads — agriculture, food, energy, transport. They are a politically charged category because the line between subsidy, transfer, and welfare entitlement is rarely clean.
Consolidated Fund
The state's main account — almost all receipts and expenditure flow through it.
The Consolidated Fund of Tamil Nadu holds revenues, loans raised, and recoveries of loans given. No money can be drawn from the Consolidated Fund without legislative authorisation.
Finance Commission
A constitutional body that sets centre-state revenue sharing every five years.
Each Finance Commission recommends the share of central taxes that flows to each state and the formula used. TN's share has fallen across successive Finance Commissions, reflecting a population-weighted formula.
FY (Fiscal Year)
The Indian fiscal year runs from 1 April to 31 March.
Indian budgets are presented for the fiscal year. FY 2023-24 means the period from 1 April 2023 to 31 March 2024. Years on this site follow this convention.
CAG (Comptroller and Auditor General)
The constitutional auditor of central and state government accounts.
The CAG audits the accounts of the Government of Tamil Nadu and publishes State Finances Audit Reports, Compliance Audits, and Performance Audits. CAG reports lag the audited fiscal year by about 12 to 18 months.