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The Economic Times

Opinion / The Economic Times

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Tamil Nadu spends too much; Bengal earns too little: A tale of two deficits

Tamil Nadu and West Bengal ended 2023-24 with revenue deficits, but their fiscal challenges differ significantly. Tamil Nadu's deficit stems from expenditure, while West Bengal's reflects weaker revenues and debt. West Bengal's lower per-capita income and higher population density strain its public services. Tamil Nadu's stronger revenue base and fiscal autonomy contrast with West Bengal's reliance on transfers.

7 Jul 2026 12:42 am