With a revenue deficit of ₹78,324 crore, an outstanding debt exceeding ₹10 lakh crore, and the own-tax-to-GSDP ratio at 5.45%, Tamil Nadu’s core challenge is not that it borrows too much; it is that it collects and spends less efficiently than comparable large States, says a recently released Kearney report on ‘Tamil Nadu’s Fiscal Crossroads’.

“Cautiously estimated, narrowing this gap can add more than ₹1.2 lakh crore of annual fiscal capacity without new taxes or additional borrowing, through better compliance, valuation, monitoring, and project discipline,” the report says.

“The opportunity is not merely to narrow a deficit; it is to restore the State’s capacity to invest confidently in infrastructure, human development, and competitiveness that its next phase of growth demands,” the study added. Better collection of revenue, sharper prioritisation, and more disciplined execution can create a conducive environment to fund growth, welfare, and fiscal prudence.

Report’s recommendations

Based on a study of Tamil Nadu’s GST collections, excise revenue, stamp duty and registration charges, mining royalties and receipts, grants in aid, and revenue and capital expenditure, the report recommends fixing the first-year targets by the State government for GST compliance, guideline-value revision, grant drawdown, mining reconciliation, procurement competition, and capital project readiness, and link departmental accountability to delivery.

Tamil Nadu’s GST-to-GSDP ratio is the lowest when compared to Maharashtra, Gujarat, and Karnataka. A combination of a large, comparatively affluent consumption base, paired with the weakest GST realisation among peers, points to a meaningful opportunity to lift collections, both by bringing a greater share of economic activity into the formal, GST-compliant fold and by tightening enforcement against existing leakages rather than raising rates.

Tamil Nadu’s Statewide guideline revisions were done in 2002, 2007, 2012, and 2017, and the next one took effect on July 2, 2024. Meanwhile, across-the-board increase was struck down by the Madras High Court in January 2024 and the State has moved to a more granular “composite value” system. States that pair periodic revision of guideline value with finer geographic granularity and use of actual registered-transaction data appear to sustain a steadier stamp-duty-to-GSDP ratio over time. Consistent enforcement of registration-below-guideline-value referrals will matter as much as the revision cadence itself, the study said.

On excise revenue, the study said enabling wider availability of premium and semi-premium alchohol products, paired with a distinct, higher excise rate for those categories, will allow Tamil Nadu to capture more revenue from consumers who are already trading up without increasing overall consumption.

As for mining receipts, it said the State can directly rationalise rates for minor minerals. For other minerals, its most immediate avenues are accurate measurement, transparent auctions, and assessment and recovery, rather than the rate itself.

“There are significant opportunities to improve procurement efficiencies through improved competition leading to better price discovery. The State has also been slower compared with other States in mobilising private capital through PPP projects, specifically in infrastructure,” the study said.

The Tamil Nadu government on Monday (September 14, 2026) signed a slew of Memoranda of Understanding (MoUs) in the presence of Chief Minister C. Joseph Vijay in London, including one with Samvardhana Motherson International Limited and its European and U.K.-based joint venture companies for an investment of approximately ₹11,000 crore.

Mr. Vijay is in London on his first official overseas visit, “with the aim of attracting investments to Tamil Nadu”. According to an official release, this investment will create employment opportunities for around 7,000 people across sectors including design, engineering, manufacturing, assembly and logistics facilities. The MoU was exchanged between Barry Painter, global head, marketing and communications, Samvardhana Motherson International Group, and Deepak Jacob, managing director, Guidance Tamil Nadu.

The State government also signed an MoU with Ernst & Young, headquartered in the United Kingdom, to facilitate the establishment of a Global Capability Centre (GCC) in the State. It involves an investment of around ₹1,000 crore aimed at creating 2,000 high-value jobs. The proposed GCC will be located in the newly announced ‘GCC corridor’ on Mount-Poonamallee Road in Chennai, the release said.

Further, Sweden-based Sigma Technology Group has signed an MoU with the Tamil Nadu government, committing to expand its GCCs in Tiruchi and Chennai through its Indian entity, Zriya Solutions, with the aim of creating 600 high-value jobs in the areas of embedded systems, electrification and industrial digitalisation. Michael Carlson, founder and chief executive officer of Sigma Technology Group, and Krishna Radhakrishnan, chief executive officer, Zriya Solutions (a part of Sigma AB Private Limited), exchanged the MoU with Mr. Jacob, said the release.

Another MoU was signed with Wilson Power Solutions for the next phase of growth of the electrical and electronic equipment manufacturing sector in the State, involving an investment of ₹300 crore in Tiruvallur district and creating 400 new jobs. Hari Krishna Malepati, group technical director of Wilson Power Solutions; Dennis Sorby, group finance director; Kumaran Periasamy, High Commissioner of India to the United Kingdom; and senior government officials were present, the release added.

Troy Hamilton Douglas talks to coaches from Tamil Nadu as if he has known them for years. At a coaching clinic in Chennai, the 63-year-old listens intently to a young coach explaining how he trained his athletes, including one returning from injury.

Friendly and hands-on, Douglas is the head coach of athletics at the Inspire Institute of Sport (IIS), Vidhyanagar, Ballari, Karnataka. He is in the city for a two-day coaching clinic organised jointly by the Sports Development Authority of Tamil Nadu and IIS.

Douglas believes Indian athletics can better its performance at the 2026 Asian Games in Aichi-Nagoya after a record 29-medal haul at the Hangzhou Games in 2023. The tally of six gold, 14 silver and nine bronze was India’s best-ever athletics performance at the Asian Games since 1951.

“If we can equal or get two or three medals more, I will be very happy. In fact, I will say we can win 32 medals. I am saying this after observing Indian athletics for more than a year and watching the Indian Series this season,” Douglas told The Hindu on Friday.

Asked about IIS athletes with medal potential, Douglas, whose contract with IIS runs until 2028, said: “We have too many [IIS] athletes — 23 in all. I will say of the lot, Rashdeep Kaur (women’s 400m and 4x400m relay) and Prachi Choudhary (women’s 400m and 4x400m relay) have a bright chance. I say that because they are properly prepared and have had a fantastic training camp with the national team.”

Douglas said he had been in close contact with Indian coach Jerry Lee Holness, who is in charge of the women’s 400m and 400m hurdles. He added that IIS jumps coach Yoandri Betanzos believed triple jumpers Praveen Chithravel and Selva Prabhu could “do some fantastic things at the Asian Games”.

Douglas, a three-time Olympian for Bermuda who competed in the 200m and 400m, said he plans to retire from coaching after 2028.

“I’m going to go back and spend time with my three grandkids and be a full-time grandfather.”

Farmers’ associations have called for lifting the ban on toddy tapping in Tamil Nadu, contending that it is a health drink. “We want Chief Minister C. Joseph Vijay and his government to lift the ban, which would create jobs and help many families. The product can also be exported,” said C. Nallasamy, coordinator, Tamil Nadu Toddy Movement.

Various farmers’ associations have been pressing this demand to bring some respite to thousands of toddy tappers, whose livelihood depends on this. “Mostly places such as Thoothukudi, Tirunelveli, Ramanathapuram, and Kanniyakumari have palmyrahs. Since they help anchor groundwater, they are planted along ponds and farmlands. No other State has banned toddy,” he said. The movement has been regularly petitioning governments and Chief Ministers, but to no avail. “I remember an incident when a former Chief Minister had promised to lift the ban and had invited us to a conference. But ultimately, there was no announcement, and we went back dejected. We have been at this for over 35 years now and hope there will be some relief,” Mr. Nallasamy said.

E. Devarajulu, Chennai zone coordinator of the Tamizhaga Vivasayigal Paadhugappu Sangam, said that when the government ran Tasmac shops and procured Indian Made Foreign Liquor for sale at these outlets, it might as well run shops selling toddy. It will earn some revenue from that. “Toddy is a natural drink, does not have much alcohol content and has plenty of vitamins. Judges have asked if the State government had planned to lift the ban. Even recently, the Madurai Bench of the Madras High Court sought to know if a framework for tapping, production, and sale of toddy could be devised in the State.”

Tamil Nadu Chief Minister C. Joseph Vijay on Saturday (August 22, 2026) extended Madras Day greetings and said the city carries the imprints of history and moves forward with the pace of modernity.

In a post on X, Mr. Vijay said Chennai is a city where historical significance, cultural heritage, excellence in various fields including education, healthcare, and technology, hard work, and innovation come together. It embraces people of diverse languages, communities, and cultures, providing opportunities for all.

“Let us preserve Chennai’s historical legacy and cultural identity and further elevate it as a world-class, modern metropolis with advanced infrastructure. Let us resolve to ensure equal opportunities, a safe environment and a prosperous life for all,” he added.

Only 3,833 schools have a dedicated special educator, while there are 1,29,452 children with disabilities enrolled across Tamil Nadu, according to a reply in the Rajya Sabha. Tamil Nadu has 57,566 schools.

Replying to the question of Rajya Sabha Member Rajinder Gupta recently, Union Minister of State for Education Jayant Chaudhary cited the UDISE 2025-26 and said 22,11,226 students with disabilities were enrolled in schools across the country, while only 1,16,695 schools had a dedicated special educator.

Activists and educationists noted this showed an imbalance in the education imparted to children with disabilities as the ideal student-teacher ratio was 1:10. “This also points to a dearth in special educators as it is difficult to find teachers who have completed B.Ed multiple disabilities. The second problem is that the pay for the teacher is quite low, which discourages them from taking up this profession,” said Sujatha Sriram, an inclusion expert.

Under the Samagra Shiksha Abhiyan programme, each special educator visited 10 schools under their individualised education programme (IEP). M. Ravichandran, State general secretary of the Confederation of Associations for Persons with Mental Disabilities, said: “There are only around 2,000 special educators under this programme across the State. It’s wholly inadequate to cover the requirements of learning for children with disabilities. How can a single special educator covering over five schools ensure IEP for the children?”

He urged the government to conduct serious review assessments of the schemes aimed at persons with disabilities with the help of parents for better implementation of the programmes.

Pointing out there needs to be a stronger political will for the education of children with disabilities, S. Namburajan, member of the National Platform for the Rights of the Disabled, said: “The approach of the government is still from a charity position and not from a rights perspective. Only when the State government takes a stronger stand and bureaucratic apathy is discarded, will universal education be a reality.”

Tamil Nadu pacer Sandeep Warrier has decided to shift allegiance and will play for Chhattisgarh as a ‘Guest Player’ in the upcoming domestic season (2026-27).

The 35-year-old started his First-Class career with Kerala and became a registered TN player in 2020. Over the last five years, he has been the pace spearhead and was part of two Syed Mushtaq Ali T20-winning squads (2021, 2021-22). He also played a key role in TN reaching the Ranji Trophy semifinals in 2023-24 for the first time in a long time.

“I had a good time with TN and won two titles and was part of knockouts twice in Ranji Trophy. In every year that I was part of the Vijay Hazare Trophy, the team reached the knockouts. I had a offer from Chhattisgarh and it was an amicable decision,” said Warrier.

However, last year Warrier had a forgettable campaign, taking only six wickets in the first five matches and was dropped for the final two matches.

Warrier, though, continues to ply his trade in the TNPL with Dindigul Dragons and will continue to feature in the T20 league.

TN’s Ranji fixtures

Tamil Nadu will kickstart its Ranji Trophy campaign against Rajasthan in Jaipur in the first round starting on October 11.

It will be followed by home fixtures against Uttarakhand and Railways. Chandigarh, Himachal, Mumbai and Haryana are the other teams TN will face in Elite Group-D in the upcoming season.

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Dairy products maker Milky Mist Dairy Food Ltd on Thursday fixed a price band of ₹133-140 per share for its ₹1,553 crore initial public offering (IPO), which will open for subscription on August 11.

The Erode-based company’s IPO comprises a fresh issue of equity shares aggregating up to ₹1,428 crore and an Offer For Sale (OFS) of up to ₹125 crore, taking the total issue size to ₹1,553 crore.

K. Rathnam, Chief Executive Officer of Milky Mist, told The Hindu on Thursday that part of the funds to be raised from the IPO would go towards closing its debts and the rest would be used for investments.

Singapore sovereign fund Temasek invested ₹482 crore in the 27-year old company in May this year, taking a 5 % stake.

The company, which makes paneer and curd to chocolates and ice creams at its plant in Perundurai registered ₹3,200 crore turnover in FY26. It has seen a 30% topline growth in the last three to four years, according to Rathnam.

The company also plans to expand its cold-chain infrastructure by deploying visi coolers, ice cream freezers and chocolate coolers, besides using a portion of the proceeds for general corporate purposes.

The company — whose sub brands include Capella, Asal, Smartchef, and Briyas. — has reserved 50% of the offer for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.

The debut Budget of the C. Joseph Vijay-headed Tamilaga Vettri Kazhagam (TVK)-led coalition government, presented by Tamil Nadu Finance Minister N. Marie Wilson on Wednesday (August 5, 2026), sought to strike a balance between fiscal prudence and welfare, with a focus on the empowerment of women, youth, students, and the elderly.

While some schemes based on the TVK’s poll promises found a place in the Budget, several prominent assurances, such as ₹2,500 monthly assistance for eligible women heads of families, six free LPG cylinders a year for every family, and free travel for women on all government bus services, did not figure in it.

The Budget also prioritised skill development and rural and infrastructure development. It provided substantial allocations for several ongoing schemes while rebranding some existing schemes and enhancing their allocations.

During his two-and-a-half hour presentation, Mr. Wilson said the State’s outstanding debt is estimated at ₹10.98 lakh crore in the Revised Budget Estimates (RBE) for 2026-27. The outstanding debt-to-GSDP ratio is estimated at 27.01%. The government plans to borrow ₹1,73,445 crore and repay ₹51,971 crore during the current financial year.

The State’s Own Tax Revenue (SOTR) is projected to grow by 9.78%, with Commercial Taxes contributing 68.9% of the collections, followed by Stamps and Registration (15.5%) and State Excise (6.2%).

Among the key announcements for women were the ‘Singappengal Valimaippaduthum Thittam’ to promote entrepreneurship, and the ‘Annan’s Seer’ scheme, under which eligible brides will receive an eight-gram gold coin and a silk saree, with ₹812 crore earmarked for the scheme.

The Budget also announced the ‘Vetri 150’ initiative, providing an additional 25 days of work for households upon completion of 125 days work under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM (G)].

It proposed to establish ‘Arivagam’, labelled as India’s first AI and Innovation City; the Tamil Nadu Student Housing and Infrastructure Corporation to build 200 integrated student hostels with one lakh beds; Perunthalaivar Kamarajar Schools of Excellence with residential facilities; industry-aligned skill development for 12 lakh college students and one lakh unemployed youth and declaring Tirunelveli and Thoothukudi districts as ‘Space Industrial Investment Zone’.

Among the major sector-wise allocations, School Education received ₹44,527 crore, followed by Rural Development (₹39,609 crore), Urban Development (₹38,715 crore), Health (₹23,357 crore), and Food and Cooperation (₹22,859 crore).