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Home » ‘TN debt situation alarming’ 
TAMIL NADU

‘TN debt situation alarming’ 

NT BureauBy NT BureauDecember 29, 2025No Comments
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In a development that has triggered intense political debate within Tamil Nadu’s ruling alliance, senior Congress leader and data analyst Praveen Chakravarty has sounded a strong warning over the State’s financial health, claiming Tamil Nadu’s debt burden has reached a highly alarming level and now stands higher than even Uttar Pradesh.
Posting on his ‘X’ handle, Chakravarty stated, “TN has the highest outstanding debt of all states. In 2010, UP had more than double the debt of TN. Now TN has higher debt than UP.” He further added that the State’s interest burden ranks among the highest in India, next only to Punjab and Haryana, and its debt-to-GDP ratio has risen significantly above pre-pandemic levels.
The remarks come at a time when DMK has repeatedly claimed it has strengthened the economy inherited from the previous AIADMK regime. His statement has caused discomfort in the DMK camp, especially with the party asserting strong fiscal management under Chief Minister M.K. Stalin’s “Dravidian Model” governance.
Chakravarty has, on earlier occasions too, rattled allies by holding separate political outreach, including a much-discussed meeting with TVK chief Vijay recently, which had triggered speculation over Congress’ political positioning ahead of 2026 polls.
Though TNCC chief Selvaperunthagai dismissed alliance friction, Congress has repeatedly indicated its desire for participation in power.
With DMK preparing aggressively for the 2026 Assembly polls, asserting confidence of winning over 200 seats, Chakravarty’s open critique has once again sparked political ripples, adding to the evolving power dynamics within the INDIA bloc in Tamil Nadu.
'TN debt situation alarming'
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