A study done by PRS Legislative Research on the finances of various state governments, it has estimate that Tamil Nadu is set to lose Rs 3,736 crore value added tax (VAT) revenue during the lockdown period. The reason is the state collects its 61% revenue from VAT or non-GST sources. GST revenue growth is likely to be less than 14%. States’ borrowings are limited by their FRBM laws at 3% of their GSDP. If they follow certain conditions, it will get relaxed by 0.5% States.