Chennai, 14 March (H.S.) : The Tamil Nadu government's debt burden is expected to increase to ₹9,29,959.30 crore by March 31, 2026, according to the budget documents for the year 2025-26. This constitutes 26.07% of the Gross State Domestic Product (GSDP) in 2025-26.
According to Finance Department( https://financedept.tn.gov.in/en/budget-publications/), Government of Tamilnadu, the government plans to borrow ₹1,62,096.76 crore during 2025-26 and make a repayment of ₹55,844.53 crore. Despite the increasing debt burden, the state aims to maintain debt sustainability as part of its fiscal consolidation roadmap.
On a positive note, the revenue deficit for 2025-26 is estimated to decrease to ₹41,634.93 crore, and is expected to further reduce to ₹31,282.23 crore in 2026-27 and ₹18,026.48 crore in 2027-28. This decrease in revenue deficit will create additional space for capital expenditure in the state.
Tamil Nadu BJP President K Annamalai has strongly criticized the DMK government's fifth budget, calling it a mere publicity stunt with empty announcements and thousands of crores of corruption ¹. Annamalai claimed that the budget fails to fulfill election promises and lacks substance and accountability.
He accompanied his statement with a photo of empty chairs on X, symbolizing the emptiness of the DMK's budget. This criticism comes after Tamil Nadu Finance Minister Thangam Thennarasu presented the fifth budget of the DMK government, which included announcements about using state funds for government schools amidst the controversy over the National Education Policy.
Annamalai's criticism also highlighted the state government's commitment to the two-language policy, despite losing central funding. The government has allocated funds for teacher salaries, student welfare schemes, and infrastructure development in schools.
The state's own tax revenue is projected to grow at 14.60% in 2025-26, reaching ₹2,20,895 crore. This includes:Commercial Taxes: ₹1,63,930 crore,
Stamps and Registration: ₹26,109 crore, Motor Vehicle Taxes: ₹13,441 crore and State Excise: ₹12,944 crore
The growth in tax revenue is attributed to the increase in economic activity, revision of taxes, and improvement in collection efficiency.
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Hindusthan Samachar / Dr. R. B. Chaudhary
