LatestGoods & Service Tax (GST) 19 July 2026
Fiscal Space Threatens TN Growth
A major threat to TN growth is the shrinking fiscal space, according to an economist, who says GST leakages, undervaluation of properties and weak tax administration are contributing factors to the decline, affecting the state's overall economic growth and development, which could have long-term consequences if not addressed properly
The Tamil Nadu economy is facing a major challenge due to shrinking fiscal space. *GST leakages*, *undervaluation of properties*, and *weak tax administration* are some of the key factors contributing to this decline. Some of the reasons include:
- GST leakages affecting tax revenue
- Undervaluation of properties impacting stamp duty collections
- Weak tax administration leading to inefficient revenue collection,
the state needs to address these issues to promote economic growth and development
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