Tamil Nadu White Paper Flags ₹10 Lakh Crore Debt, ₹78,324 Crore Revenue Deficit

The Tamil Nadu government on Tuesday released a white paper on the state's financial position, highlighting a substantial debt burden and a widening revenue deficit while criticizing the fiscal management of the previous DMK administration led by former Chief Minister M.K. Stalin .

Addressing a press conference at the Secretariat, Finance Minister Marie Wilson said the state currently carries a direct debt burden of ₹10 lakh crore . The white paper also reported a revenue deficit of ₹78,324 crore , describing it as an unprecedented level in the state's fiscal history.

Wilson said the government's assessment pointed to growing financial pressures and underscored the need for corrective measures to strengthen Tamil Nadu's fiscal health. The report examines key financial indicators and outlines the challenges facing the state treasury.

The white paper further noted that the ratio of State's Own Tax Revenue (SOTR) to Gross State Domestic Product (GSDP) stood at 5.45 per cent , which the minister described as relatively low. The government indicated that improving revenue generation and enhancing fiscal discipline would be among its priorities in the coming years.

The release of the document fulfills a commitment made by Chief Minister C. Joseph Vijay shortly after assuming office. The government had earlier promised to place the state's financial position in the public domain through a detailed assessment of revenue, expenditure, debt, and fiscal trends.

The white paper is expected to shape policy discussions on public finances, debt management, and economic planning in Tamil Nadu, while also triggering a political debate over the state's fiscal legacy and future financial strategy.