Tamil NaduThursday, 10 September 2026·The Hindu - Tamil Nadu
Tamil Nadu debt rose 309% in a decade, CAG flags repayment pressure and interest burden
The CAG’s 2024-25 audit says Tamil Nadu’s outstanding public debt rose from ₹1,94,096 crore to ₹7,94,107 crore in 10 years.
Key highlights
Direct fact
In the 2024-25 State Finances audit, the Comptroller and Auditor General (CAG) of India reported that Tamil Nadu’s outstanding public debt rose by 309% over the decade from 2015-16 to 2024-25, increasing from ₹1,94,096 crore to ₹7,94,107 crore.
Key specifics
- During 2024-25 alone, Tamil Nadu’s outstanding public debt increased by 15.16%.
- Interest paid in 2024-25 was ₹48,852 crore, higher than principal repayment of ₹38,470 crore.
- Borrowed funds were used for revenue expenditure (34%) and debt repayment (28%) in the audited year.
- About 43% of the debt is scheduled for repayment within 0-7 years, indicating liquidity pressure.
- The ratio of interest payments to revenue receipts rose to 21.18% in 2024-25.
Exam lens
Economy and state finances question, CAG audit 2024-25, debt-to-repayment burden, interest payments at 21.18%, public debt figures from 2015-16 to 2024-25 — TNPSC may ask data-based questions on fiscal sustainability.