Chief Minister O. Panneerselvam and DMK treasurer M.K. Stalin on Tuesday took on each other on the issue of the financial situation of the Tamil Nadu government.
During the debate on the Budget, Mr. Stalin said the total government debt, including those of the State-owned entities, had crossed over Rs. 4 lakh crore, raising apprehensions about the health of the economy.
In his reply, Mr. Panneerselvam said across the world, borrowing funds for invigorating growth was an accepted practice.
ADVERTISEMENT
Even developed countries such as Japan have high debt rates.
According to the State balance sheet, the total debt repayable during the year 2014-2015 was Rs. 1.81 lakh crore.
This was 19.21 per cent of the State GDP. The estimated debt at the end of 2015-2016 was Rs 2.11 lakh crore, which was 19.24 per cent of the GDP.
ADVERTISEMENT
The Chief Minister said it was way lower than the 25 per cent the Centre recommends. It was also considerably less compared to other major States.
Further, Mr. Pannerselvam said, the interest on the debt repayable in 2015-2016 was estimated at Rs 17,139 crore. This was only 12.01 per cent of the total revenue for the year. In 2001-2002, this was at a higher rate of 18.67 per cent.
Also, in the last four years, the State borrowed Rs. 79,687 crore, whereas its capital expenditure during this time was Rs 79,528 crore. “You can understand from this that we have not spent the money arbitrarily,” he said.
DMK walkout
Later, the DMK members walked out of the Assembly after a remark by Mr. Panneerselvam that the upcoming Assembly elections next year may have increased the DMK’s interest in the Budget since two senior leaders have spoken about it in the current session.