Tamil Nadu's finance minister N Marie Wilson released a white paper on the state's finances, revealing a significant increase in outstanding debt and revenue deficit.
According to the document, Tamil Nadu's outstanding debt almost doubled in five years from ₹5.13 lakh crore in 2021-22 to ₹10 lakh crore approximately in 2025-26.
The state's interest payments rose from ₹41,564 to ₹67,050 crore in the same period, and the revenue deficit in 2025-26 was higher than Karnataka's and Maharashtra's, at ₹78,324 crore.
However, the numbers do not suggest the situation has worsened, as revenue deficit as a proportion of GSDP has stayed almost flat (2.25% and 2.22%), and outstanding liabilities as a proportion of GSDP have also remained steady (28.7% and 28.3%).
The state's growth has helped offset the increase in spending and debt, with Tamil Nadu's GSDP growing 10.83% in 2025-26, on the back of a 11.19% growth in 2024-25.
Finance minister Wilson stated that the path to emerge from this crisis is through 'administrative efficiency,' and that there is no need to raise taxes.
He outlined a plan to plug revenue leakages, reduce procurement costs, and structurally reform public sector undertakings, which would create the necessary fiscal space to fund new welfare schemes.
The DMK has responded to the White Paper release, terming it an 'empty paper' and not a 'white paper'.
