Dravidian model government has pushed Tamil Nadu behind UP: Anbumani

CHENNAI: PMK president Anbumani Ramadoss on Monday said the so-called Dravidian model government has pushed Tamil Nadu from a position where it once competed with foreign countries to a state of fiscal distress, placing it behind Uttar Pradesh in financial management.

Citing a report by the Comptroller and Auditor General of India (CAG), he said Tamil Nadu now ranks second among States with the highest revenue deficit, behind only Andhra Pradesh. The report, titled Fiscal Health of States: Rising Public Debt over a Decade, reviewed State finances between 2013-14 and 2022-23.

The report found that 16 of India’s 28 States achieved a revenue surplus by keeping expenditure within receipts, following the golden rule of public finance. Uttar Pradesh, once considered a backward State, topped the list with a surplus of Rs 37,000 crore in 2022-23. Gujarat, Odisha, Jharkhand, Karnataka, Chhattisgarh, Telangana and others also recorded surpluses.

In sharp contrast, Tamil Nadu reported a revenue deficit of Rs 36,215 crore. “The DMK has dragged Tamil Nadu down to 27th place, far behind Uttar Pradesh, which now leads the nation in fiscal discipline,” Anbumani said.

The report also revealed that Tamil Nadu and 10 other states were using borrowed funds largely to pay salaries and subsidies instead of investing in infrastructure. Anbumani alleged that this amounted to borrowing to pay employees, worsening the State’s debt burden.

Comparing current figures, he said TN is borrowing Rs 49,278 crore just to meet revenue expenses, while Uttar Pradesh has managed its finances to generate a surplus of Rs 79,516 crore, enabling it to spend Rs 1.65 lakh crore on infrastructure.