Former DMK minister TRB Rajaa has raised concerns over Tamil Nadu's fiscal health, describing the state's revenue engine as being in a "red alert" state. He highlighted that GST collections in August fell by one percent compared to the previous year, dropping from 10,329 crore in August 2025 to 10,189 crore in August 2026.
Rajaa noted that GST accounts for 38 percent of the state's own tax revenue, making this decline particularly alarming. He pointed out that while India is recording a nine percent growth rate, the contraction in Tamil Nadu serves as a significant economic warning. With development projects requiring consistent funding, he cautioned that this revenue shortfall could create a crisis for the government.
Questioning whether the government will be forced to cut spending or increase borrowing, Rajaa criticized the current situation, stating that a budget without revenue is merely a paper calculation. He has urged the government to provide a clear explanation for the decline in collections.
