EconomySaturday, 5 September 2026·The Hindu - Tamil Nadu
Tamil Nadu debt-GSDP ratio: government consultant says 23% is sustainable level
A government economic consultant said Tamil Nadu’s sustainable debt-GSDP ratio is 23%, compared with the current 27%.
Key highlights
Direct fact
In September 2026, Tamil Nadu government economic consultant K.R. Shanmugam said the State’s sustainable debt-GSDP ratio is 23%, against the current 27%, citing the FRBM Committee report of 2017 headed by N.K. Singh.
Key specifics
- The FRBM Committee headed by N.K. Singh had prescribed 20% as the prudent debt limit for States in 2017.
- Tamil Nadu’s debt-GSDP ratio was 22.78% in 2019-20 and rose to 28.67% in 2020-21.
- The ratio has been hovering in the 28% to 26% range since the COVID-19 year.
- Mr. Shanmugam said Tamil Nadu’s fiscal deficit is 3% of GSDP, while revenue deficit is about 1.4% of GSDP.
- He said the State could reach 23% by 2050-51 with 15% nominal growth and a 3% fiscal deficit, or by 2033-34 with 14% growth and a 2.5% fiscal deficit.
Exam lens
TNPSC economy question type: ratio, committee, year-based facts. Key facts: 23%, 27%, 2017 FRBM report, 22.78% in 2019-20, 28.67% in 2020-21. One-liner: Which committee’s 2017 report prescribed 20% as the prudent debt limit for States?