Chennai

‘Loans used to pay interests of State’

Ahead of the State Budget, DMK MLA PTR Palanivel Thiagarajan on Thursday alleged that Tamil Nadu’s debt has crossed ₹ 4-lakh crore and the money borrowed by the government was being used only to pay the interest for the loan.

Talking to reporters in Chennai, he said the loan amount was not used for investment.

When the tenure of the DMK regime ended in mid-2011, the interest paid per annum was ₹ 8,000 crore. “It increased to ₹ 18,000 crore when Jayalalithaa was the Chief Minister. But in the last year the AIADMK government paid ₹ 29,000 crore as interest,” he said

Mr. Thiagarajan said what was lacking today was the fiscal management and the biggest problem ailing the state economy was stunted revenue growth.

“When economy witness growth, the revenue also should match it. Only such a growth will result in investment and implementation of welfare schemes. But the State is not witnessing growth since 2016,” he said.

Recalling the suggestion made in the CAG report that a committee should be formed to increase revenue, Mr. Thiagarajan said the revenue should be increased to 10% of the total production.

He said the revenue deficit stood at ₹ 23,500 crore and it was unprecedented in the fiscal history of Tamil Nadu.

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Printable version | Feb 25, 2020 7:26:51 PM | https://www.thehindu.com/news/cities/chennai/loans-used-to-pay-interests-of-state/article30814951.ece

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