Tamil Nadu True Debt Burden Pegged At Rs 13.18 Lakh Crore In White Paper
Tamil Nadu’s latest White Paper on state finances has pegged the state’s “true debt burden” at Rs 13.18 lakh crore, after including contingent liabilities, guarantees, and obligations linked to public sector undertakings.
The report, released by Finance Minister N Marie Wilson on Tuesday, June 16, 2026, covers the five years from 2021-22 to 2025-26. It said Tamil Nadu’s financial stress has become structural rather than temporary, with outstanding debt rising close to Rs 10 lakh crore.
Revenue Deficit Adds Pressure
According to the White Paper, Tamil Nadu recorded a revenue deficit of Rs 78,324 crore during the period under review. It also pointed to a decline in the State’s Own Tax Revenue to GSDP ratio and a rise in interest payments.
A major concern highlighted in the document is that interest payments have exceeded capital expenditure. This indicates pressure on the state’s ability to spend more on long-term development and infrastructure projects.
The White Paper further indicated that the actual revenue deficit may rise to around Rs 90,500 crore, while the fiscal deficit could touch Rs 1.64 lakh crore.
PSU Liabilities Increase Debt Burden
The White Paper said public sector undertakings have added significantly to Tamil Nadu’s overall financial burden. When PSU obligations, guarantees, and contingent liabilities are included, the state’s true debt burden reaches Rs 13.18 lakh crore.
The report also flagged losses in public sector undertakings as a serious concern. The Finance Minister said these losses need correction through better management, stronger monitoring, and administrative reforms.
Government Says Situation Can Be Reversed
Finance Minister N Marie Wilson expressed confidence that Tamil Nadu’s financial position can be improved through stronger revenue mobilisation, better expenditure control, corruption-free governance, and reforms in public sector undertakings.
She said the government would focus on plugging revenue leakages and improving administrative efficiency. The minister also said welfare schemes would not be ignored, but added that announcements must be backed by proper income generation and financial planning.
Election Promises To Be Fulfilled With Timeline
When asked about election promises, the Finance Minister said the government would fulfil its commitments with a proper timeline after consultation with the Chief Minister.
The White Paper has now brought Tamil Nadu’s debt position, PSU liabilities, and revenue deficit into sharper public focus. The findings are likely to shape political debate around fiscal management, welfare spending, and long-term financial stability in the state.
