Tamil Nadu White Paper Shocker: Debt burden soars to ₹13.18 Lakh Crore

Tamil Nadu's total debt has reached ₹13.18 lakh crore, according to a White Paper released by the TVK government. The report highlights rising revenue deficits, increasing borrowings, and a per capita debt burden of nearly ₹1.3 lakh.

TVK releases White paper

Chennai: The Tamil Nadu government led by Vijay has released a White Paper detailing the state's financial condition, revealing that Tamil Nadu's total debt burden has reached ₹13.18 lakh crore.

The report, prepared by the Finance Department under Finance Minister Maria Wilson, presents a comprehensive assessment of the state's fiscal position and highlights concerns over rising debt, revenue deficits, and increasing financial obligations.

Debt Burden Crosses ₹13 Lakh Crore

According to the White Paper, Tamil Nadu's total debt consists of:

• ₹10 lakh crore in direct government debt
• ₹3.18 lakh crore in borrowings by state public sector undertakings (PSUs)

The report states that while the state accumulated nearly ₹5 lakh crore in debt over the previous 60 years, an additional ₹5 lakh crore was borrowed during the five-year DMK administration, significantly increasing the state's financial liabilities.

Per Capita Debt Nears ₹1.3 Lakh

One of the most striking findings is that the per capita debt burden has reached ₹1,29,934, indicating a growing financial responsibility on the state's population.

The report also notes that Tamil Nadu's overall debt burden increased by 14.3% during the DMK government's tenure.

Revenue Deficit Worsens

The White Paper highlights a sharp rise in the state's revenue deficit:

• Revenue deficit increased from ₹46,538 crore in 2021 to ₹78,324 crore in 2026
• Revenue deficit levels have exceeded prescribed limits relative to Gross State Domestic Product (GSDP)
• Capital expenditure as a share of GSDP has declined

Interest Payments Putting Pressure on Finances

The report further reveals that:

• 22.8% of total revenue receipts are being spent on interest payments
• Salaries, pensions, and interest obligations together consume 64.4% of total revenue receipts

These fixed expenditures leave limited fiscal space for development projects and welfare initiatives.

Govt Says It Inherited a Heavy Financial Burden

The White Paper argues that the current administration inherited a challenging fiscal situation. It claims the previous government was compelled to borrow not only for investments and infrastructure projects but also to meet routine operational expenses.

The report concludes that careful financial management and fiscal reforms will be necessary to stabilize the state's finances and reduce the growing debt burden in the coming years.