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Will TN Government’s debt level decrease?

Will TN Government’s debt level decrease?

It cannot be said that borrowing by the government or individuals is wrong. But the right decision is to buy after making sure that you have the ability to repay the loan properly on time. However, the debt amount of Tamil Nadu government is increasing year by year. Eight years ago i.e. in 2015, the debt of the Tamil Nadu government was only Rs.2,11,000crore. It increased to Rs 4,80,000crore in 2021 and Rs 5,70,000 crore in 2022. According to the budget presented by Finance Minister PalanivelThiagarajan in the Legislative Assembly last week, it is estimated that the debt of the Tamil Nadu government will reach Rs 7,26,028 crore by the end of this financial year.

The Tamil Nadu government is planning to take a new loan of Rs 1,43,197crore this financial year. Out of which Rs.51,331.79crore will be spent on debt repayment. While Haryana, Jammu and Kashmir and Punjab state governments' debt is more than 50% of their gross domestic product (GDP), Tamil Nadu's debt is only 32% as of March 2022. About 16 states have debt levels higher than that of Tamil Nadu.

After coming to power after Covid, the finance minister has made various unavoidable expenses and allocated the necessary funds to fulfill the election promises. At the same time, he has reduced the government's revenue deficit to 1.23%. The finance minister has also said that he will present a deficit-free budget in the next few years.

So, on the whole, various statistics says that the Finance Minister of Tamil Nadu is doing well in managing the financial sector properly. At the same time, the expectation of the people of Tamil Nadu is that the finance minister should take measures to reduce the debt which is increasing year by year!