Faced with the grim prospect of the state’s outstanding debt touching over Rs 1.18 lakh crore by the end of 2011-12, Tamil Nadu government on Monday indicated there was nothing to worry as it would be lesser than 13th Finance Commission norms.
“The debt situation would be only 20.39 per cent of the Gross Domestic Product (GSDP).” Chief Minister J Jayalalithaa told the Tamil Nadu Assembly.
Intervening during a discussion on the budget, presented last week by Finance Minister O. Panneerselvam, Ms. Jayalalithaa insisted that this was lesser than the 24.50 benchmark set by the 13th Finance Commission.
Presenting the Budget, Mr. Panneerselvam had also made a similar argument, saying the debt ratio to GSDP was lesser than Finance Commission norms.
The AIADMK government, which assumed power in May, had started with an opening debt of Rs 1,01,349 crore which is projected to touch Rs 1,18,610 crore by the end of 2011-12.