Tamil Nadu White Paper Reveals ₹10 Lakh Crore Debt, Says Every Newborn Carries ₹1.28 Lakh Burden
Tamil Nadu’s direct debt has climbed to nearly ₹10 lakh crore, with the state government’s White Paper revealing that every child born in the state now carries an estimated debt burden of ₹1.28 lakh. Finance Minister N. Marie Wilson said the report aims to provide transparency about the state’s financial condition and the challenges requiring urgent policy action.
According to the White Paper, the state’s revenue deficit has widened from ₹46,538 crore to ₹78,324 crore over the past five years, indicating a growing structural imbalance. The report states that debt growth during this period has been the highest seen in six decades, with total debt amounting to 28.3% of the state’s revenue.
The document also claims that much of the borrowing was used to fund routine expenditure rather than creating productive assets. Nearly 22.8 paise of every rupee earned by the state is spent on interest payments. Compared with other major industrial states, Tamil Nadu’s debt-to-revenue ratio is considerably higher than Gujarat (17.6%), Maharashtra (19.7%), and Karnataka (23.4%), which the report describes as a cause for concern.
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