Senior Congress leader P. Chidambaram emphasized that evaluating a state’s financial well-being based solely on its total debt is flawed. He highlighted that the global trend shows a rise in public debt, not unique to India or individual states like Tamil Nadu. Chidambaram pointed out that the debt-to-GDP ratio is a more accurate measure of financial health, noting Tamil Nadu’s stable ratio over the years.
Developed nations like the US, UK, Japan, France, and Canada also experience annual increases in public debt. Chidambaram emphasized that the absolute quantum of debt is not the key metric; rather, the ratio to GDP is more meaningful. He commended Tamil Nadu’s fiscal management, projecting a reduction in the state’s fiscal deficit in line with NITI Aayog targets by 2025–26.
Chidambaram dismissed comparisons between Tamil Nadu and Uttar Pradesh as misleading, citing differences in economic structures and revenue bases. He intervened to clarify the Congress party’s stance following controversy sparked by comments on Tamil Nadu’s debt levels. His statement aims to reinforce trust in Tamil Nadu’s fiscal governance and maintain unity within the opposition alliance amid upcoming political events.
