Tamil Nadu’s debt-to-GSDP ratio remains within prescribed norms, but rising revenue and fiscal deficits need close monitoring, Principal Accountant General R Tirupathi Venkataswami said.
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Tamil Nadu’s debt-to-GSDP ratio remains well within prescribed norms and is backed by a steady economic expansion of around 16 per cent, though rising revenue and fiscal deficits warrant close observation, Principal Accountant General R Tirupathi Venkataswami said on Tuesday.Speaking to reporters following the tabling of seven Comptroller and Auditor General (CAG) audit reports in the Tamil Nadu Legislative Assembly, Venkataswami said an analysis of the state’s receipts, expenditure and debt position showed widening deficits despite an otherwise manageable debt burden.“The state revenue deficit and fiscal deficit is just a concern. Otherwise, debt-GSDP ratio is well within the norms prescribed for that. As such, there is no concern on that. Maybe as the revenue deficit and fiscal deficit is increasing, it has to be watched closely how it is moving towards the subsequent years,” Venkataswami said.Economic growth offsets debt concernsAddressing concerns over the state’s debt sustainability, he noted that TN has witnessed steady economic growth of roughly 16 per cent over the last two years.“Comparing both, since economic growth is good and the current level of debt is not a serious concern...if the economy of the state grows at the same level, the debt portion is limited, and the debt-GSDP is within the limit, I don’t think there is any cause to worry about it,” he added.Venkataswami, a 2000-batch Indian Audit and Accounts Service officer serving as Principal Accountant General (Audit-II), Tamil Nadu and Puducherry, and holding additional charge of Audit-I, explained that the reports covering the period ending March 2025 were presented in accordance with CAG guidelines.Delays in power projects raise procurement costsHighlighting audit findings in the energy sector, he pointed out that delays in completing planned power projects forced state public sector undertakings to procure electricity from open sources at higher costs.“There was some delay in completing those projects, and because of that, they had to go for buying it from the open sources. And we have pointed out such buying also happened at higher cost. That is causing some losses to the organisation,” he said.When asked about proposed expansions of state welfare schemes, Venkataswami declined to comment, stating that he could not speak on matters not covered in the reports.He similarly declined to comment on the now shelved Parandur airport project, noting that an audit on the matter had neither been taken up nor considered.Audit operations across Tamil NaduDescribing the audit operations, Venkataswami said the two audit offices operate with a strength of roughly 650 officers, with 25 to 30 per cent stationed at the Chennai headquarters and the remainder deployed in field offices across district headquarters. He noted that cooperation from the state government and local authorities has generally been positive, with any operational deficiencies resolved through established institutional channels.Published on September 9, 2026
