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Abstract
In India, the bulk of accountability for social and economic development lies with the State government. As such an in-depth investigation of the different sources of State revenue and expenditure can enable us to judge exactly the impact of State budgetary operations on the social and economic development of the people. So, it is significance to appraise critically the case of the States on the basis of truthful evidence. The main objective of the present study is to analysis the trend in fiscal finance of the State Tamil Nadu during the period 1990-91 to 2017-18. This study predominantly depends on secondary source of data. To the study the trend analysis, annual growth rate has been employed. Although the State Government have been undertaking fiscal consolidation measures by way of reducing their revenue deficits/ maintaining revenue surplus and maintaining their fiscal deficit within the stipulated norms, in more recent years, the government finance has been under stress. The growth rate of revenue receipt, tax revenue, non-tax revenue and revenue expenditure which was 19.7 per cent, 20 per cent, 18 per cent and 19.2 per cent in 1990-91 declined to 4.3 per cent, 9.4 per cent, 14.5 per cent and 9.6 per cent in 2017-18 respectively. Except during 2005-06 to 2008-09 and 2011-12 to 2012-13, the State was able to maintain only revenue deficit during the period of study. In order to put the finances of the State back on the rails, apart from revenue-side measures, the State government should undertake some substantial or even radical reform measures. The present study is, however, deals only with the revenue account but not the capital account. To have a clear picture, both revenue and capital account has to study simultaneously.