Chennai, Jan 19 Tamil Nadu Finance Minister Thangam Thennarasu dismissed allegations made by AIADMK General Secretary and Leader of the Opposition in the state Assembly Edappadi K. Palaniswami (EPS), regarding the state's financial situation.
Speaking to reporters in Virudhunagar, Minister Thennarasu asserted that the state is not facing a debt trap and that borrowing and repayment are well within prescribed parameters.
Rejecting the opposition leader's claim that the state is heading towards bankruptcy due to poor financial management by the DMK government, the minister said, "Palaniswami has made baseless accusations solely to create a stir. He is speaking without a basic understanding of the subject."
Minister Thennarasu explained that a state's borrowing and repayment capacity is determined by its domestic production levels.
He further emphasised that Tamil Nadu has borrowed less than the maximum limit recommended by the Finance Commission.
Earlier, EPS criticised the DMK government during a debate on the Motion of Thanks to Governor R. N. Ravi's address.
He highlighted a sharp rise in state debt over the past three years, citing borrowing figures of Rs 84,747 crore (2021-22), Rs 73,957 crore (2022-23), Rs 90,369 crore (2023-24), and Rs 1,04,319 crore (2024-25).
EPS expressed concerns that the total debt could exceed Rs 5 lakh crore by the end of the government's tenure.
Responding to these claims, Minister Thennarasu stated that the increase in debt aligns with the growth in the state's Budget size and its Gross State Domestic Product (GSDP).
He noted that Tamil Nadu's GSDP now stands at Rs 31.57 lakh crore, while the state's annual budget has expanded to over Rs 4 lakh crore, enhancing its debt repayment capacity.
He reiterated that Tamil Nadu's borrowing levels remain within the fiscal norms prescribed by the Finance Commission.
"There is no cause for alarm over the state's debt, as it is under control and aligned with fiscal guidelines," he said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor