Assembly halls echoed with fiscal realities as Tamil Nadu’s Finance Minister Thangam Thennarasu laid out interim budget plans, projecting public debt at a staggering ₹10.71 lakh crore for 2026-27.
From 2025-26’s revised ₹9.52 lakh crore – already above the ₹9.29 lakh crore initial plan – the climb continues. Thennarasu spotlighted the ₹9,523 crore Chennai Metro Rail Phase-II snag, hung up due to central inaction on accounting.
Excluding this ‘phantom’ liability, core debt reads ₹9.42 lakh crore now and ₹10.62 lakh crore ahead. Borrowing strategy includes ₹1.79 lakh crore inflows and ₹60,413.42 crore outflows, holding debt-to-GSDP at 26.12%.
Revenue deficit eases to ₹48,696.32 crore versus prior highs, thanks to tackling GST slumps, scheme fund delays, and power firm losses. Fiscal gap narrows to ₹1.21 lakh crore, or 3% GSDP – from 3.48% – signaling prudent management.
‘More central backing would transform our position,’ the minister asserted. Amid debates on federalism, Tamil Nadu’s roadmap prioritizes development funding with disciplined borrowing, eyeing long-term stability as elections loom.