Tamil Nadu faces Rs 13.18 lakh crore debt burden, says TVK government white paper
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Ahead of presenting its first budget, the Tamil Nadu government on Tuesday released a White Paper estimating the state's total debt exposure at Rs 13.18 lakh crore and warning of serious fiscal challenges.
The report, released by Finance Minister Maria Wilson, projected direct state debt at Rs 10 lakh crore in 2025-26. Including liabilities of public sector undertakings and other contingent liabilities, the total debt burden rises to Rs 13.18 lakh crore.
According to the White Paper, Tamil Nadu's revenue deficit stands at Rs 78,324 crore, while the fiscal deficit has reached Rs 1.33 lakh crore, or 3.77 per cent of GSDP. The report said state debt increased by Rs 4.87 lakh crore over the past five years and noted that interest payments in 2025-26 are expected to exceed capital expenditure.
The power sector was identified as a major source of financial stress, with the Tamil Nadu Electricity Board group carrying debt of Rs 2.47 lakh crore. The report also highlighted falling own-tax revenue, rising committed expenditure, and losses in state-run transport corporations.
Despite the findings, the government said welfare schemes would continue and pledged to improve finances through better revenue mobilisation, plugging leakages and structural reforms rather than imposing fresh taxes.
The opposition DMK criticised the report, calling it a "black paper".
