Tamil Nadu debt: Every child born carries over ₹1 lakh debt, reveals White Paper

Every child born in Tamil Nadu today carries a debt burden of nearly ₹1.28 lakh, according to the Tamil Nadu government’s White Paper on the state’s finances released by Finance Minister N. Marie Wilson. The report paints a worrying picture of the state’s fiscal health, revealing that Tamil Nadu’s direct debt has surged to nearly ₹10 lakh crore and that the revenue deficit has widened sharply over the last five years.

The White Paper states that Tamil Nadu’s revenue deficit has increased from ₹46,538 crore to ₹78,324 crore during the period, highlighting what the government describes as a growing structural imbalance in the state’s finances. The report notes that debt growth over the past five years has been the highest recorded in six decades, with total debt now accounting for around 28.3% of the state’s revenue.

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One of the most striking findings in the document is the per-capita debt burden. According to the government, the state’s liabilities have risen to such an extent that every newborn child in Tamil Nadu effectively carries a debt burden of approximately ₹1.28 lakh. The report argues that this reflects the long-term fiscal stress facing the state and underscores the need for urgent corrective measures.

The White Paper further claims that a significant portion of government borrowing in recent years was used to finance routine expenditure rather than creating productive assets or investing in infrastructure. It also reveals that nearly 22.8 paise out of every rupee earned by the state is spent on servicing interest payments alone, leaving limited fiscal room for development expenditure.

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Finance Minister N. Marie Wilson said, "The purpose of the White Paper is to provide transparency about the state’s financial condition and inform citizens about the challenges that require immediate policy intervention. The government maintains that fiscal discipline and structural reforms will be necessary to restore long-term financial stability."

According to the report, Tamil Nadu's debt-to-revenue ratio is significantly greater than that of several industrialised states when compared to other major states. Gujarat's ratio is 17.6%, Maharashtra's is 19.7%, Karnataka's is 23.4%, and Tamil Nadu's is 28.3%, which the report classifies as "very high."