Tamil Nadu unveils ₹79,219 crore budget amid debt and deficit concerns
Tamil Nadu's new budget allocates ₹79,219.06 crore to infrastructure, power and welfare programmes, prompting opposition warnings about rising debt and deficits.
In its inaugural budget, the C Joseph Vijay-TVK administration committed ₹79,219.06 crore to a blend of capital projects and ongoing welfare costs. Key components include a ₹33,066 crore statewide transmission upgrade, a ₹20,800 crore Thoothukudi super-critical thermal plant, an ₹11,000 crore urban-infrastructure drive, and a new Assembly-Secretariat complex at Pattinapakkam valued at ₹1,200 crore. Welfare schemes such as free electricity for 200 kWh, a ₹4,000 crore LPG subsidy and expanded cooperative crop-loan relief add to the recurring outlay.
Opposition leaders Edappadi K Palaniswami (AIADMK) and Thangam Thennarasu (DMK) warned the package could deepen the revenue deficit, now ₹55,775 crore, and push total debt beyond the 23 % GSDP benchmark. To offset the strain, a panel headed by Montek Singh Ahluwalia aims to raise an extra ₹15,000 crore, while Finance Minister N Marie Wilson announced borrowing of ₹1,73,445 crore for the year. Officials say the infrastructure spend will be phased over three to five years to avoid an immediate cash crunch.
Why it matters
The budget's massive outlay could significantly increase Tamil Nadu's debt and affect fiscal stability for millions of residents.
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