TN Assembly divided over 1 trillion USD economic goal amid debt concerns
CHENNAI: The state Assembly on Wednesday witnessed an intense exchange between the treasury and Opposition benches over the state’s economic growth projections, mounting debt burden and the feasibility of achieving a one-trillion-dollar economy, a key goal outlined by the DMK government.
Leader of the Opposition Edappadi K Palaniswami and AIADMK senior leader KP Munusamy locked horns with Finance Minister Thangam Thennarasu and other ministers during the discussion on the interim budget 2026-27.
Munusamy, citing growth estimates in the interim budget, argued that even with a 14% annual growth rate, the state’s Gross State Domestic Product (GSDP) would reach only around Rs 60 lakh crore by 2029-30.
He also compared Tamil Nadu’s rising debt with that of Uttar Pradesh, arguing that despite having nearly double the population, the northern state’s outstanding borrowings were lower.
While borrowing could be justified by growth, he said the projected debt of over Rs 10 lakh crore raised concerns about fiscal management.
In response, Thennarasu said the 11.19% growth rate cited by the government was based on official data acknowledged by the union government and not a claim unique to the DMK.
He maintained that the state’s growth performance was genuine and a matter of pride. On debt, he said borrowings were linked to economic expansion, and alleged that fiscal constraints imposed by the centre put pressure on state finances.
Intervening many times during the discussion, Palaniswami argued that overall growth figures masked slowdown in the primary sector, particularly agriculture. Pointing out that agricultural growth had been negative in recent years, he said nearly 65% of the population depended on the sector and called for a more comprehensive assessment rather than focusing solely on manufacturing.
The finance minister countered that overall growth was calculated by aggregating contributions from all sectors, adding that detailed measures to strengthen agriculture had been outlined in the Agriculture Budget.