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Tamil Nadu Pays Rs 138 Interest Per Rs 100 Borrowed

Tamil Nadu Pays Rs 138 Interest Per Rs 100 Borrowed
For every Rs 100 Tamil Nadu builds with, it pays Rs 138 in interest · businesstoday.in

The government of Tamil Nadu, a state in India, told everyone how it plans to spend money next year, and this plan is called the Budget.

The person in charge of the state's money is the Finance Minister, whose name is N. Marie Wilson.

The state borrows money, like someone taking a loan, to build things and to pay its bills.

But borrowing costs money too, because the state has to pay interest on the loan.

Right now, for every 100 rupees the state borrows to build, it pays 138 rupees in interest.

That is a lot, and the interest bill keeps growing bigger every year.

The good news is that the state's economy, which is the total money earned in the state, has grown almost as fast as the debt, so the debt is not becoming too heavy compared to the economy.

Some opposition leaders, like the AIADMK's Edappadi K. Palaniswami, say the government's plan to find new money is not clear enough.

The government says new taxes and better computer checks will bring in more money in the future.

Key facts

Finance Minister
N. Marie Wilson
Government
Tamilaga Vettri Kazhagam-led coalition
Projected outstanding liabilities (2026-27)
₹10,98,768 crore
Reduction vs interim Budget
₹690 crore (0.06%)
New debt added vs last year
₹98,936 crore
Interest bill, this year
₹78,683 crore (up from ₹41,564 crore in 2021-22)
Debt as share of economy
28.7% (2020-21) to 28.3% (2025-26)
Expected revenue from new measures
Up to ₹1,000 crore from liquor privilege fee; about ₹15,000 crore from faceless GST, registration and mining checks

Sources

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