Chennai: Annamalai, founder of “We The Leaders”, said the Tamil Nadu government’s white paper on the state’s finances contains no major new information that would be “surprising”. He said he had read the document and viewed it largely as a record that brings recent fiscal slippages into focus.
In his statement, Annamalai said the white paper compares Tamil Nadu’s key fiscal indicators with other industrialised states and lays out the state’s current position. He argued that the document primarily underscores deterioration in financial management over the past five years.
Citing figures mentioned in the white paper, he said Tamil Nadu’s outstanding debt has reached Rs 10 lakh crore, translating to an average per-capita debt burden of Rs 1,28,934. He also pointed to the claim that 22.8% of the state’s total revenue is spent on servicing interest on borrowings.
He further noted that the ratio of the state’s own tax revenue (SoTR) to GSDP has fallen from 5.93% in 2021-22 to 5.45% in 2025-26. He added that major public sector entities linked to power, transport and consumer goods distribution together carry debt of Rs 3.18 lakh crore, and that the paper flags revenue losses and systemic corruption in the registration department, including alleged undervaluation of land during registration.
Warning that the working-age population is expected to begin declining from 2031, Annamalai said there is limited time to strengthen the revenue base and restore fiscal health. He urged the government not to use the white paper as a reason for inaction, and called for immediate measures, including forming an “effective” advisory group comprising experts from economics, academia, industry, trade, administration, technology and social development.
