Tamil Nadu ended fiscal 2023-24 with gross market borrowings at ₹1,13,000 crore and emerging the top borrowing State for the fourth successive fiscal year, according to ratings firm ICRA Limited.
Maharashtra stood next with borrowings of ₹1,10,000 crore, Uttar Pradesh at ₹97,700 crore, Karnataka at ₹81,000 crore, Rajasthan at ₹73,600 crore and Andhra Pradesh at ₹68,400 crore, ICRA said in its report.
The States, including Tamil Nadu, borrow from the market by auctioning bonds known as State Development Loans (SDL).
As per Reserve Bank of India data, Tamil Nadu’s gross market borrowings remained at ₹87,000 crore in fiscal 2022-23, as well as in fiscal 2021-22.
The State government plans to borrow a total amount of ₹1,55,584.48 crore during 2024-25. The outstanding debt as on March 31, 2025 will be ₹8,33,361.80 crore, according to Tamil Nadu Budget for 2024-25.
During his reply to the discussion on the Budget for 2024-25 in the Legislative Assembly, the State’s Finance Minister Thangam Thenarasu had said that the Tamil Nadu government’s debts were well within the norms prescribed by the Finance Commission.
He also pointed out that the State government had to bear the losses of Tangedco and was being forced to take loans to fund the entire project expenditure for Chennai Metro’s Phase II project, which led to the increase in revenue deficit anddebt burden.
