{
  "id": 8202691,
  "title": "Kearney study recommends measures to improve Tamil Nadu’s fiscal capacity",
  "url": "https://urgent.news/2026/09/18/kearney-study-recommends-measures-to-improve-tamil-nadus-fiscal",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T07:51:40.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/news/cities/Coimbatore/kearney-study-recommends-measures-to-improve-tamil-nadus-fiscal-capacity/article71479748.ece"
  },
  "original_language": "en",
  "account": "Tamil Nadu faces a fiscal challenge, with a revenue deficit of ₹78,324 crore, outstanding debt exceeding ₹10 lakh crore, and an own-tax-to-GSDP ratio of 5.45%, according to a Kearney report. The report suggests that narrowing this gap could add over ₹1.2 lakh crore in annual fiscal capacity, without the need for new taxes or borrowing, through improved compliance, valuation, monitoring, and project discipline. The study recommends setting first-year targets for GST compliance, guideline-value revision, grant drawdown, mining reconciliation, procurement competition, and capital project readiness, with departmental accountability linked to delivery. Tamil Nadu's GST-to-GSDP ratio is lower than that of Maharashtra, Gujarat, and Karnataka, indicating an opportunity to boost collections by increasing the share of economic activity in the formal GST-compliant sector and tightening enforcement against existing leakages. The report also highlights the need for periodic guideline-value revisions, finer geographic granularity, and the use of actual registered-transaction data to maintain a stable stamp-duty-to-GSDP ratio.",
  "summary": "The State’s core challenge is not that it borrows too much, but that it collects and spends less efficiently than comparable large States, the study says",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}