Not A Proud Ranking: Tamil Nadu Has The Highest Outstanding Debt In The Country

When out of power and in the Opposition, political parties talk differently from when they are in power. This is a given and a glaring example of this popped up at the time the Tamil Nadu Budget was presented by the ruling DMK government for 2024-25. Having spent with a great deal of profligacy in having to keep up poll promises like free bus rides for all women, etc, the State is now expected to bear a debt burden well past Rs 8 lakh crore, with the outstanding Tamil Nadu debt by March 31, 2025 projected to be Rs 8,33,361.80 crore. The government is planning to borrow Rs 1,55,584.48 crore during 2024-25 and make a repayment of Rs 49,638.82 crore. “The amount to be borrowed constitutes 26.41% of GSDP in 2024-25. The Outstanding Debt as a percentage of GSDP is expected to be 25.75% in 2025-26 and 25% in 2026-27, which are well within the norms 107 prescribed by the Fifteenth Finance Commission,” was the finance minister Thangam Thennarasu’s statement in the Assembly. When the debt of each Tamil was measured to be around Rs 2.5 lakh, the DMK made a song and dance about it before the 2021 polls. Now that figure will pass Rs 3.5 lakh. Tamil Nadu has the highest outstanding debt in the country.