It is estimated that the State’s Own Tax Revenue (SOTR) would grow at 12.11% in 2025-26 over the revised estimates for the previous fiscal.
SOTR would grow to ₹91,514.75 crore in 2025-26 compared to ₹81,627.29 crore in 2024-25, budget documents tabled in the State Assembly on Friday noted.
Non-tax revenues, meanwhile, is expected to go up from ₹17,905.65 crore in 2024-25 to ₹19,145.53 crore in 2025-26.
The share of Central taxes is expected to grow at 12% in anticipation of a rebound in economic growth, the Medium Term Fiscal Policy and Strategy Statement observed.
Nominal Gross State Domestic Product (GSDP) is projected to grow at 11.90%, and revenue expenditure, at 10.70%, it noted.
Ensuring economic growth by boosting investment in productive sectors, increased capital expenditure and ensuring the sustainability of State finances through prudent fiscal management feature prominently among ‘strategic priorities’ listed in the medium-term fiscal policy.
“The government plans to accelerate growth by increasing investment in productive sectors. Capital spending will be the key driver of growth and increased capital expenditure will be focused to spur economic growth and employment. Tax mobilisation and expenditure rationalisation will continue to be the priority,” Finance Minister K.N. Balagopal observed in the document.
