CHENNAI: We The Leaders founder and Chief Servant K Annamalai on Friday urged the ruling TVK government to act swiftly on the concerns highlighted in its White Paper on Tamil Nadu’s finances, saying the document should serve as a roadmap for corrective measures rather than a defence for future non-performance.
After reviewing the report, Annamalai said the findings were largely in line with concerns that had already been raised about the State’s fiscal health. He described the White Paper as a comprehensive account of the financial challenges that had accumulated over the past five years and said it offered a clear picture of Tamil Nadu’s position compared with other industrialised states.
“The TVK government has very little time at its disposal and must not treat this White Paper as an excuse for non-performance. Instead, it should explore ways to repair the damage done,” he said.
Citing figures from the report, Annamalai pointed out that Tamil Nadu’s outstanding debt had reached nearly Rs 10 lakh crore, while the per capita debt burden stood at Rs 1,28,934. He noted that interest payments accounted for 22.8 per cent of total revenue receipts and said the State’s own tax revenue-to-GSDP ratio had declined from 5.93 per cent in 2021-22 to 5.45 per cent in 2025-26.
He also referred to the combined debt of Rs 3.18 lakh crore carried by major State public sector undertakings in the power, transport and civil supplies sectors. Alleging revenue losses due to systemic corruption and undervaluation of property transactions, he said such practices had weakened the State’s revenue base.
Warning that Tamil Nadu’s working-age population is projected to shrink by 2031, Annamalai said the State had limited time to strengthen its finances. He proposed the creation of a functional consultation group comprising economists, academics and experts from various sectors to suggest measures for addressing the fiscal challenges facing the State.