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16th Finance Commission Report Identifies Tamil Nadu, Uttar Pradesh, Rajasthan as Top States with SPSE Losses of ₹16,048 Cr, ₹32,430 Cr, ₹18,814 Cr

Target:UPSC GS-IIIMPSCSSC GAPrelims HighMains MediumStatic GK Link
08 Feb 2026
~2 min
Source: The Hindu
Key Data:2022-23₹32,430 crore (Uttar Pradesh)₹18,814 crore (Rajasthan)₹16,048 crore (Tamil Nadu)₹9,192 crore (Tangedco loss)₹2,073 crore (TNPDCL PAT)
Bodies:16th Finance CommissionPower Finance Corporation
Practice MCQs from today's news ▸
What This Article Covers

1.The 16th Finance Commission identified Tamil Nadu as the third-largest contributor to losses from State Public Sector Enterprises (SPSEs) for FY 2022-23.

2.The power sector was the primary source of losses, but recent unbundling and state subsidies have led to a reported profit for the successor entity.

3.This news tests knowledge on Finance Commissions, state finances, and the challenges of public sector enterprises, a recurring theme in GS Paper III.

The Big Picture
Prelims · HighMains · Medium

The 16th Finance Commission's report reveals the massive fiscal burden State Public Sector Enterprises (SPSEs) impose, identifying Tamil Nadu as the third-highest loss-making state for 2022-23. This is critical for understanding state finances, the power sector's role in deficits, and the central commission's role in fiscal federalism.

Exam Lens

Quick Exam Facts From News

Top Loss-Making State (2022-23)Uttar Pradesh (₹32,430 crore)
Tamil Nadu's SPSE Loss (2022-23)₹16,048 crore
No. of SPSEs in Tamil Nadu (2023)102
Report Source16th Finance Commission, Volume 1

1-Minute Revision

  • ›Top Loss-Making State (2022-23): Uttar Pradesh (₹32,430 crore)
  • ›Tamil Nadu's SPSE Loss (2022-23): ₹16,048 crore
  • ›Target this Data: Tamil Nadu's SPSE loss for 2022-23 was ₹16,048 crore.
  • ›Target this Nodal Body: The Sixteenth Finance Commission (Chairman: Dr. Arvind Panagariya).
  • ›Target this Legal Point: Constitutional basis under Article 280.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Finance Commission is a constitutional body established under which article?

Q2Statement-basedHard

Consider the following statements regarding the 16th Finance Commission's findings on State Public Sector Enterprises (SPSEs):

1. The total financial support extended by all State Governments to SPSEs in 2022-23 was about ₹2.5 lakh crore.

2. For Tamil Nadu, the power sector was the primary source of SPSE losses.

3. The 16th Finance Commission included Tamil Nadu in the list of States with a high proportion of loss-making enterprises.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the 16th Finance Commission report, what was the approximate loss incurred by the Tamil Nadu Generation and Distribution Corporation (Tangedco) in the year under review?

Q4Application/ImpactMedium

What is the primary implication of heavy losses in State Public Sector Enterprises (SPSEs), as highlighted by the Finance Commission?

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