Tamil Nadu Debt Doubles in Five Years, Every Newborn Burdened With ₹1.28 Lakh

According to a white paper on the state's economic situation released by the Vijay-led government, Tamil Nadu's total financial liabilities have increased to an estimated ₹13.18 lakh crore, and the state's outstanding direct debt has reached close to ₹10 lakh crore.

The fiscal status report presented by Finance Minister N. Mary Wilson stated that the debt burden on the state has almost doubled in the last five years under the MK Stalin-led DMK government. The report further noted that according to the White Paper, the state's liabilities translate into a per-capita debt burden of approximately ₹1.28 lakh.

The white paper on the economic condition of Tamil Nadu, which reviews the financial situation inherited from the previous MK Stalin-led government, was one of the first major announcements made by Vijay after he was sworn in as Chief Minister last month.

According to the document, the state's direct debt has increased sharply from around ₹4.8 lakh crore five years ago to nearly ₹10 lakh crore now. When off-budget borrowings, guarantees, and other liabilities are also included, the state's total financial burden is estimated at ₹13.18 lakh crore.

Recent Debt Exceeds Decades

The debt accumulated in the last 5 years is more than the total debt accumulated in the previous six decades.

The minister said that the debt accumulated in the last five years is greater than the total debt accumulated during the previous six decades. He further said that a large portion of the borrowing was used to meet day-to-day expenses rather than building infrastructure assets.

Tamil Nadu's outstanding debt ratio stands at 28.2 per cent, while the revenue deficit has increased from Rs 46,538 crore to Rs 78,324 crore in the last five years, reflecting the widening gap between revenue receipts and expenditure.