TN's debts mounted due to decrease in Centre's share: Minister Thangam Thennarasu

Chennai, Oct 16 (PTI) Tamil Nadu's debt burden mounted due to a drastic decrease in the Central share, and as a result, the state government had to make up for the shortfall, state Finance Minister Thangam Thennarasu informed the Assembly on Thursday.

The state's debts will decrease by Rs 3 lakh crore if the Centre released the pending dues, he said.

The tax revenues of the state declined due to GST rate rationalisation, and thus increased the state's financial burden. The AIADMK, which is in alliance with the BJP should prevail upon the Centre and ensure devotion of funds to Tamil Nadu, he said.

"Don't blame our fiscal management for the rising debts. The Centre's share is decreasing. You can speak with the Union Finance Minister and ensure financial devolution to Tamil Nadu. Then our debts will decrease by Rs 3 lakh crore," Thennarasu said while responding to an issue raised by former AIADMK Minister P Thangamani.

At this, Leader of the Opposition AIADMK Edappadi K Palaniswami said when former Chief Minister J Jayalalithaa took up the reins, she inherited the debt legacy of the DMK government but did not impose new taxes on the people.

Retorting, Thennarasu asked, "Why are you not talking about the debts you left when your AIADMK government demitted office? Even we faced the problems due to the pandemic when our DMK formed the government in 2021." Thennarasu said the state government paid Rs 1.40 lakh crore interest on the debt inherited by the previous AIADMK regime. Tamil Nadu's debts increased to Rs 2.11 lakh crore in 2015-16, i.e., a 108 per cent increase in debt from 2011-12. And at the end of the next tenure between 2016-17 and 2020-21, the state's debts rose to Rs 4.80 lakh crore, clocking 128 per cent increase.

At present, the state's debt stood at Rs 9.21 lakh crore, which is 93 per cent in contrast. "We kept the fiscal deficit under control," Thennarasu added. PTI JSP JSP KH