T.N.’s GSDP expanded by 15.98% in 2024-25; debt stands at ₹8.53 lakh crore: CAG

The report also noted that the State continued to outperform the national average in per capita income. Tamil Nadu’s economy exhibited robust growth, with GSDP expanding by 15.98 per cent in 2024-25 as against 13.34 per cent in the previous year while the total debt ballooned to ₹8.53 lakh crore with debt-to-GSDP ratio being 27.38 per cent, falling within the target range of 28.90 per cent fixed by 15th Finance Commission and Tamil Nadu Fiscal Responsibility Act.

The official report by Comptroller and Auditor General of India’s report titled “State Finances for the year 2024-25” was tabled in the State Assembly on Tuesday. The report also noted that the State continued to outperform the national average in per capita income, and its contribution to the national GDP stood at 9.43 per cent during 2024-25.

However, it added that the revenue deficit increased from ₹45,121 crore in 2023-24 to ₹45,840 crore in 2024-25, and that the State failed to meet the Fifteenth Finance Commission (15th FC) projection of achieving a revenue surplus, despite the increase in GSDP.

The State’s committed expenditure - expenses on salaries and wages, pensions, and interest payments added up to ₹1,76,676 crore – making up almost 53.75 per cent of the Revenue Expenditure and 62.47 per cent of total Revenue Receipts respectively.

Almost 21 per cent of revenue receipts went towards Interest Payments and were on an upward trend from 2022-23, reflecting an increasing debt burden. Furthermore, the report said that the subsidies provided by the State made up for 16 per cent of total revenue expenditure, an increase by ₹14,854 crore (39.35 per cent) over the previous year.

This surge was mainly attributable to the schemes viz., Magalir Urimai Thogai Scheme and subsidy extended to TNEB on behalf of farmers using farm pump sets during the year.