The new government of Tamil Nadu has released a ‘white paper’ regarding the economic condition of the state. The Finance Minister of this new government led by Chief Minister Vijay, N. Mary Wilson said that the state is currently facing a huge debt crisis. According to the report, every child born in Tamil Nadu now has an average debt of Rs 1.28 lakh.
Loan increased more than double in 5 years
In this report the previous M.K. Questions have been raised on the functioning of the Stalin government. According to the report, five years ago the state had a debt of about Rs 4.8 lakh crore, which has now increased to about Rs 10 lakh crore. If all other types of small and big government loans and guarantees are included, the total burden on the state comes to Rs 13.18 lakh crore.
Expressing concern, the Finance Minister said that in the last 5 years the government has taken as much loan as was not taken even in the last 60 years. The biggest problem is that this money was used to meet everyday government expenses instead of development work or building new infrastructure like roads, hospitals, schools.
condition of government treasury
- Out of every ₹1 the government earns, 22.8 paise is spent only on paying the interest on old loans.
- The state’s deficit has increased from Rs 46,538 crore to Rs 78,324 crore. That means earnings are decreasing and expenses are increasing rapidly.
- Tax earnings have increased by only 5.45%, which is very low compared to the increasing expenses of the state.
Comparison with other states
Percentage of state debt (to GSDP)
- Gujarat 17.6%
- Maharashtra 19.7%
- Karnataka 23.4%
- Tamil Nadu 28.3%
What does the opposition say?
This is the first major step of the Vijay government after assuming the post of Chief Minister last month. However, even before the report came out, DMK chief M.K. Responding to these allegations, Stalin had said that the debt of Tamil Nadu is within the prescribed limit. He had claimed that there is no shortage of money with the state, there should only be an intention to run the government properly. At present, after the release of this new report, no new statement has come from DMK.
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SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
