Tamil Nadu’s GSDP for 2022-2023 saw a growth of 14%: CAG report

Tamil Nadu's GSDP grew 14% in 2022-23, driven by industry and services sectors, with rising fiscal stress highlighted.

Tamil Nadu’s Gross State Domestic Product (GSDP) for 2022-2023 grew 14% when compared to the previous year, driven primarily by the industry and services sectors, P. Jaisankar, Principal Accountant General (Audit -I), Tamil Nadu, said on Tuesday.

“The per capita GSDP of the State was nearly 56% higher than the national average,” he said, while making a presentation on the CAG’s audit report on ‘State Finances – Government of Tamil Nadu 2022-2023’.

According to the details provided in the report, the growth rate of the State’s GSDP in 2022-23 at current prices was 14.16%, as against India’s growth rate of 16.06%. During the post-COVID-19 period, that is 2021-22, there was a significant boost in GSDP growth, which stood at 15.84%. During the current year, though the growth rate was 14.16%, which was less than the previous year, it was, however, significantly higher when compared to 2018-19.

The GSDP in 2022-23 at current prices was ₹23,64,514 crore, and the GDP in 2022-23 at current prices was ₹2,72,40,712 crore. Further, the per capita GSDP of Tamil Nadu for 2022-23 was ₹3,08,020, while that of the country was ₹1,96,983.

The CAG report pointed out that the continuous mismatch between receipts and expenditure indicates rising fiscal stress. The State has various sources of receipts such as the States’ Own Tax Revenue, non-tax revenue, devolution of the States’ share in taxes, grants-in-aid and transfers from the Union government, and non-debt capital receipts. The State government’s expenditure includes expenditure on revenue accounts as well as capital expenditure (asset creation, loans and advances, investments, etc.)

From 2018-19 to 2022-23, revenue receipts grew from ₹1,73,741 crore to ₹2,43,749 crore, with an average annual growth rate of 11.13%. Capital receipts increased from ₹54,850 crore to ₹1,02,182 crore during this period.

The share of grants-in-aid in revenue receipts rose marginally from 13.45% in 2018-19 to 15.48% in 2022-23. The State government received ₹15,270 crore as Central share for the Centrally Sponsored Schemes (CSSs) that year.