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Tamil Nadu Chief Minister C Joseph Vijay has announced that he will release a white paper on the state’s financial condition before moving forward with major decisions.
In an emotional and politically charged first speech after taking oath as the CM on May 10, Sunday, Tamilaga Vettri Kazhagam (TVK) chief Vijay alleged that Tamil Nadu was facing a severe financial crisis. He said that the state was burdened with a debt of over Rs 10 lakh crore.
“The previous government has taken loans worth over Rs 10 lakh crore. They have emptied the coffers, and left behind an unbearable burden. It is in these circumstances that I have assumed this responsibility,” Vijay said.
He said that the full extent of the financial condition could only be understood after closely examining the administration from within. He said his government would then release a white paper on the financial condition of the state, to ensure transparency and take things forward from there.
Tamil Nadu’s high debt figures under the previous DMK government have been cited by critics as a sign of policy failure, as the state’s outstanding debt had exceeded that of Uttar Pradesh.
According to the Reserve Bank of India (RBI)’s latest study of state finances for 2025-26, the Tamil Nadu government’s total outstanding liabilities stands at Rs 9.38 lakh crore, as per the revised estimate for 2025. The budget estimate for 2026 is Rs 10.4 lakh crore, close to the figure Vijay cited. This is around 29% of its GSDP.
The absolute debt figure for Tamil Nadu is the highest across India, followed by Maharashtra (Rs 9.37 lakh crore), Uttar Pradesh (Rs 8.83 lakh crore), and Karnataka (Rs 8.14 lakh crore).
But DMK leaders and many economists have pointed out that high debt alone cannot determine the strength of the economy. They said that the state’s performance in parameters such as education, healthcare, industrial investments, social justice, urban infrastructure and welfare delivery, should also be considered to understand if the borrowings are being spent effectively.
As of 2022-23, Tamil Nadu had the third highest per-capita income in India. Tamil Nadu Human Development Index for 2023 was 0.787, higher than India’s national average of 0.685. The state also performs better in literacy, life expectancy, and poverty indices.
Watch Pooja Prasanna explain why quoting just debt is misleading:
Former CM and DMK chief MK Stalin reacted to Vijay's announcement and said that the debt level of Tamil Nadu is within permitted limits.
"We clearly explained the financial position of the Tamil Nadu government in the February budget itself. Only after that, you made various promises to the people. Don't deceive the people who voted for you and try to divert the issue," Stalin said.
He also said, "Don't start saying right away that the government has no money. It does have it. What’s needed is the will to give it to the people, and the ability to govern."
Vijay said he rose from ordinary circumstances and was not born into political privilege. He said he was the son of an assistant film director and understood poverty and hunger firsthand.
"I am not someone who comes from a royal political background. I am one among you. I feel like your son, your brother, your younger sibling. It is because you felt the same way that you brought me to this position," he said.
Seeking patience from the people, Vijay described the mandate as a "huge responsibility" and assured that his government would focus on women’s safety, eliminating narcotics, strengthening ration distribution, healthcare, drinking water supply and road infrastructure.
“You have given me a huge responsibility. I request you to give me some time. I will deliver what I promised, and your time will be helpful and cooperative for me,” Vijay said.
"Whether they are friends or enemies, all eight crore people of Tamil Nadu are my people," he declared.
In a strong statement against corruption, Vijay vowed that not even "a single paisa" of public money would be misused under his administration.
"Vijay will not commit any mistake, and he will not allow wrongdoing," he asserted.
He also sent a message to political rivals, saying those who believed they could destabilise the government through "political games" should abandon such hopes.
"There is only one power centre here," he stressed.
Vijay concluded his speech by thanking women, youth, farmers, teachers, government employees, fishermen, children, alliance partners and TVK cadres, calling the new government "a fresh beginning" for Tamil Nadu.
With IANS inputs