T.N.’s GSDP expanded by 15.98% in 2024-25; debt stands at ₹8.53 lakh crore: CAG
A CAG report reveals that Tamil Nadu's GSDP grew by 15.98% in 2024-25, though the state's total debt reached ₹8.53 lakh crore. While the state outperformed national per capita income averages, it struggled with a rising revenue deficit and high committed expenditures on subsidies and interest payments.
Why it matters
The report underscores the fiscal challenges faced by Indian states in balancing economic growth with rising debt and social welfare obligations.
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.
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