Tamil Nadu’s total debt exposure estimated at ₹13.18 lakh crore in Government White Paper

Ahead of presenting its maiden State Budget, the TVK-led government has released a White Paper outlining Tamil Nadu’s financial condition. The document estimates the state’s overall debt exposure at approximately ₹13.18 lakh crore and describes several interconnected fiscal challenges affecting public finances.

Finance Minister Maria Wilson, while presenting the report, stated that issues such as increasing borrowings, rising interest obligations, widening revenue deficits, weakening own-tax revenue growth, growing committed expenditure, and off-budget liabilities are symptoms of deeper structural concerns.

According to the report, the state’s direct debt is projected to touch ₹10 lakh crore during 2025-26. When liabilities linked to public sector undertakings and other contingent obligations are added, the overall exposure rises to ₹13.18 lakh crore. State-owned enterprises account for more than ₹3.18 lakh crore in debt, while government guarantees have increased significantly over the last five years, reaching ₹1.79 lakh crore in 2026.

The government maintained that although the fiscal situation remains challenging, corrective measures can be implemented without introducing additional taxes on citizens.