TN’s debt burden grew by 22.43 % in FY20-21: CAG report

Tamil Nadu’s debt grew by 22.43 per cent in 2020-21 and touched Rs 5,18,796 crore, a Comptroller and Auditor General of India report, tabled in the state assembly on Wednesday said.

The report recommended the government to initiate measures for creating increased fiscal space through augmenting its own revenues so as to avoid utilisation of capital receipts to meet revenue expenditure and to achieve the target set in the Tamil Nadu Fiscal Responsibility Act.

The capital expenditure of Rs 36,902 crore and the high fiscal deficit for that year was indicative of utilisation of borrowing for financing revenue expenditure and the debt grew by 22.43 per cent.