TVK Releases TN Finance White Paper
Tamil Nadu Finance Minister Marie Wilson released a White Paper on the state’s finances, warning that rising debt, widening deficits and an ageing population could place long-term pressure on the government’s fiscal stability.
Marie Wilson Releases Tamil Nadu White Paper
Marie Wilson said the White Paper was prepared to give the public a transparent assessment of Tamil Nadu’s financial position. The report examined the state’s fiscal management between 2021-22 and 2025-26 and highlighted a sharp rise in liabilities during the period.
According to the White Paper, Tamil Nadu’s total debt burden has reached ₹13.18 lakh crore, while the per capita debt burden has increased to around ₹1.29 lakh. The report said the state’s direct debt nearly doubled from about ₹5 lakh crore to nearly ₹10 lakh crore over five years.
Tamil Nadu Debt Burden And Fiscal Deficit
The White Paper said Tamil Nadu’s revenue deficit rose from ₹46,538 crore in 2021-22 to ₹78,324 crore in 2025-26. It also said the fiscal deficit remained above the 3% fiscal responsibility threshold throughout the review period.
The report flagged rising interest payments, committed expenditure and losses in public sector undertakings as major fiscal concerns. It also noted that debts linked to the electricity and transport sectors continue to weigh heavily on state finances.
Ageing Population Adds Fiscal Pressure
The White Paper warned that Tamil Nadu’s ageing population could further increase pressure on healthcare, pensions and welfare spending. It projected that the share of senior citizens in the state would rise sharply in the coming years.
The government said reforms, better revenue collection, reduced leakages and improved public sector efficiency would be needed to stabilise the state’s finances.
