Tamil Nadu’s outstanding liabilities from open market borrowings stood at ₹6,00,993 crore as on March 31, 2024, according to the Handbook of Statistics on Indian States 2023-24 released by the Reserve Bank of India (RBI).
According to the Comptroller and Auditor General of India (CAG), total liabilities of the State government typically constituted internal debt of the State (market loans, ways and means advances from the RBI, special securities issued to National Small Savings Fund and loans from financial institutions, among others), and loans and advances from the Central government and Public Account Liabilities.
Including the UDAY bonds, loans from banks and financial institutions, and the Centre, among others, the State’s overall outstanding liabilities stood at ₹8,34,544 crore at the end of March 31, 2024, the RBI data reveal. As of March 31, 2023, the overall outstanding liabilities for Tamil Nadu was ₹7,41,498 crore.
To meet their funding requirements, States, including Tamil Nadu, borrow from the open market through issue of bonds called the State Development Loans. The auction for the bonds are held by the RBI. The State Finances Audit Report of the CAG for the year ended March 2023, tabled in the recently concluded Assembly session, included the details of repayment of principal and interest of the outstanding market loan in the next ten years (2023-24 onwards).
The State’s liability on account of interest would be ₹28,263.67 crore, and the liability towards principal amount of market loan would be ₹3,75,951.97 crore over the next 10 years (from 2023-24), the report added.
According to the State budget for 2024-25, the Tamil Nadu government plans to borrow a total of ₹1,55,584.48 crore during 2024-25, and repay ₹49,638.82 crore.
As a result, the outstanding debt, as on March 31, 2025, will be ₹8,33,361.80 crore. This constitutes 26.41% of the Gross State Domestic Product (GSDP) in 2024-25, it further said.
The outstanding guarantees of the State government at the end of March 31, 2024, was ₹90,451.5 crore as per the budget estimates, the RBI data said.
The total outstanding guarantees of the State government were ₹90,709.22 crore, as on 31 March 2023. This constituted 43.72% of the total revenue receipts of 2021-22 (₹2,07,492.40 crore), and 3.84% of the GSDP (₹23,64,514 crore at current prices), the CAG report said.
Remove
SEE ALL