Chidambaram Defends Tamil Nadu’s Finances, Rejects Debt Totals as the Yardstick

He says projections indicate the state will reach the 3% deficit cap in 2025–26.

Overview

The former finance minister argues that a state’s fiscal health should be judged by the debt-to-GSDP ratio rather than absolute borrowing.
He says Tamil Nadu’s debt-to-GSDP ratio has remained broadly stable from 2021–22 through 2025–26.
Chidambaram cites assessments showing the fiscal deficit narrowing each year, with the NITI Aayog target of 3% expected to be met in 2025–26.
He calls comparisons between Tamil Nadu and Uttar Pradesh misleading due to differing economic structures and adds that rising public debt is a global pattern.
His remarks respond to Praveen Chakravarty’s criticism that drew DMK pushback, as the Tamil Nadu Congress leadership disowns his comments and lodges a complaint with the party high command.