Economy · 4 Aug 2026

Tamil Nadu Revenue Augmentation Committee

With reference to Tamil Nadu's recently constituted Revenue Augmentation Committee, which one of the following statements is correct?

AThe committee is headed by Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission
BThe committee was constituted after Tamil Nadu's own-tax revenue to GSDP ratio reached a record high, prompting a review of surplus utilisation
CCommitted expenditure in Tamil Nadu, comprising salaries, pensions and interest payments, consumes approximately 40 percent of the state's revenue receipts
DThe committee's mandate is restricted exclusively to tax administration reform and does not extend to exploring non-tax revenue sources
This question is based on: Tamil Nadu Is Getting Richer, But Its Government Isn't
Take this in full test mode → Instructions for 4 Aug 2026
About this question

Why in news

Tamil Nadu released a White Paper showing its own-tax revenue to GSDP ratio had fallen to a historic low even as the state's economy kept growing, prompting the constitution of this committee.

Why for UPSC

This tests whether aspirants can catch numeric and directional inversions (record low vs record high; 64% vs 40%) - a common technique UPSC uses to test careful reading rather than general awareness of the topic.

Prelims summary

Tamil Nadu's Revenue Augmentation Committee, headed by Montek Singh Ahluwalia, was set up after own-tax revenue to GSDP fell to a historic low of ~5.45%, with committed expenditure consuming close to 64% of revenue receipts.

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