Overview
- Arguing that absolute borrowing distorts the picture, P. Chidambaram said the accepted measure of fiscal health is debt relative to GSDP.
- He cited projections showing Tamil Nadu’s deficit narrowing and the state staying on track for the 3% target in 2025–26.
- He called comparisons with Uttar Pradesh misleading, noting differing economic structures and revenue bases.
- His comments followed Praveen Chakravarty’s post labeling Tamil Nadu’s debt “alarming,” after which the state Congress chief filed a complaint to the AICC and disowned the remarks.
- The BJP’s Narayanan Thirupathy criticized Chidambaram’s stance as political spin and highlighted higher recent capital outlays reported for Uttar Pradesh versus Tamil Nadu.