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AIADMK Rajya Sabha MP M. Thambidurai criticised Tamil Nadu’s financial management in Parliament, citing CAG data and warning that the state’s debt could rise to ₹10.71 lakh crore by 2027.
AIADMK senior leader M Thambidurai flags concerns in Parliament
New Delhi: As part of the discussions on the Union Budget, senior AIADMK leader and Rajya Sabha member Thambidurai spoke during the debate on The Appropriation Bill, 2026 and made strong criticisms regarding the financial management of the Tamil Nadu government.
He raised concerns about Tamil Nadu’s debt burden exceeding ₹10 lakh crore and also highlighted financial irregularities pointed out in the CAG report.
Referring to the latest report by the Comptroller and Auditor General of India, Thambidurai said Tamil Nadu’s fiscal deficit has reached ₹90,430 crore, which amounts to 3.32% of the Gross State Domestic Product, exceeding the 3% ceiling permitted under the State Fiscal Responsibility Act.
He warned that the state’s total debt could increase to ₹10.71 lakh crore by March 2027.
The AIADMK leader said the state government plans to borrow ₹1.79 lakh crore during the 2026-27 financial year.
However, he alleged that only 31% of the borrowed funds are being used for capital expenditure that creates new assets, while the remaining 69% is spent on servicing existing debt and other routine expenses.
Thambidurai also claimed that ₹14,808 crore allocated for 1,540 government schemes remains unspent. He further cited the audit report stating that only 12% to 17% of funds allocated for welfare schemes for Scheduled Castes and Scheduled Tribes have been utilised.
Raising another concern, he said the state-run electricity utility Tamil Nadu Generation and Distribution Corporation retained a large portion of tax revenue collected.
Out of ₹5,493.40 crore collected, only ₹1,228 crore had been deposited into government accounts, while the remaining ₹4,264 crore was retained by the utility, he alleged.
Thambidurai said welfare schemes and poor financial management have pushed the state into a difficult fiscal position and rejected claims that the situation is due to inadequate financial support from the Centre.
Similar concerns have previously been raised by Edappadi K. Palaniswami and K. Annamalai.
His remarks in Parliament have once again triggered debate over Tamil Nadu’s fiscal management and economic policies.
