TN’s outstanding debt to touch Rs 10.7 L crore in 2026-27: FM

Chennai: Tamil Nadu’s outstanding public debt is projected to reach Rs 10.71 lakh crore in 2026-27, Finance Minister Thangam Thennarasu said on Tuesday while presenting the Interim Budget in the Assembly. According to the Interim Budget Estimates for 2026-27, the state’s debt is expected to rise from Rs 9.52 lakh crore in the Revised Estimates for 2025-26. The earlier Budget Estimates for 2025-26 had pegged the outstanding debt at Rs 9.29 lakh crore.However, the state finance minister clarified that the 2025-26 Revised Estimates include Rs 9,523 crore related to the Chennai Metro Rail Phase-II project, which was approved as a Central Sector Project. He said this amount should reflect in the Union government’s accounts. “Despite repeated requests, the necessary book adjustment entries have not been carried out by the Union government, leading to an artificial increase in our debt,” he contended.