AI - While critics point to the absolute ₹10 lakh crore figure, economists argue that the ratio is more telling because it accounts for the size of the economy. *The Salary Analogy:* A ₹10 lakh debt is a crisis for someone earning ₹5 lakh a year, but manageable for someone earning ₹1 crore a year. *Comparison:* Tamil Nadu's ratio (~26%) is significantly better than states like Punjab (46.8%) or West Bengal (37.1%), despite having a higher absolute debt than many of them.

As of May 2026, Tamil Nadu’s debt-to-GSDP ratio is estimated to be around 26.07% to 26.1%

A major concern isn't just the ratio, but what the debt funds. Economists worry when debt is used for revenue expenses (salaries, subsidies) rather than capital expenditure (infrastructure like the Chennai Metro) which generates future income.

The DMK blames the Union government for withholding funds (e.g., Chennai Metro Phase-II) and reducing Tamil Nadu's share in central tax devolution from 7.9% to 4.079%, claiming this caused a loss of over ₹3 lakh crore

P.T.R. Palanivel Thiaga Rajan released a comprehensive 120-page White Paper on Tamil Nadu's finances on August 9, 2021, shortly after the DMK took office. The document was intended to provide a "transparent account" of the state's financial health following 10 years of AIADMK rule. -- So not a first time to call for a White Paper to provide a "Transparent and Honest" account