Tamil Nadu faces a mounting debt trajectory, with public liabilities forecasted to touch ₹10.71 lakh crore in 2026-27, as per interim budget estimates tabled by Finance Minister Thangam Thennarasu in the legislative assembly.
This follows a revised 2025-26 figure of ₹9.52 lakh crore, surpassing the budgeted ₹9.29 lakh crore. Central to the minister’s address was the unresolved ₹9,523 crore for Chennai Metro Phase-II, awaiting central accounting despite approvals.
‘Persistent appeals to the center have yielded no bookkeeping adjustments, padding our debt unrealistically,’ Thennarasu stated. Adjusted figures show ₹9.42 lakh crore for 2025-26 and ₹10.62 lakh crore for 2026-27.
The state eyes ₹1.79 lakh crore in new loans and ₹60,413.42 crore repayments next year, with debt at 26.12% of GSDP. Revenue shortfall is projected at ₹48,696.32 crore, improved from ₹69,219 crore last year.
Key pressures included GST reductions, stalled central funds, and power sector bailouts, inflating the 2025-26 gap beyond originals. Positively, fiscal deficit dips to ₹1.21 lakh crore (3% GSDP) from 3.48%, reflecting consolidation efforts.
Thennarasu emphasized that enhanced federal cooperation could bolster outcomes. This interim blueprint highlights Tamil Nadu’s strategy to fund growth while reining in liabilities, setting the stage for post-election fiscal policies.