Tamil Nadu Government today defended its outstanding debts situation saying it was due to capital expenditure as the CPI demanded a white paper on the matter.
Participating in the debate on interim budget, CPI Floor Leader V Sivapunniyam demanded that the government present a white paper on its outstanding debts, which is over Rs one lakh crore.
Intervening, Finance Minister K Anbazhagan said debts were capital expenditure as it was being used for infrastructure and development projects and not on anything else.
“Capital expenditure becomes asset creation” he said.
Law Minister Duraimurugan said lending agencies lent money only after assessing the State government’s repaying abilities.
“We have the resources (to borrow) and repaying abilities,” he said.
The government had come under criticism after the interim budget for 2011-12 estimated the outstanding debts at Rs 1,01,541 crore.
