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Palaniswami Slams TVK Over Spiralling State Debt, Warns of Fiscal Crisis
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News18•03-10-2026, 21:45
Palaniswami Slams TVK Over Spiralling State Debt, Warns of Fiscal Crisis
- •AIADMK general secretary Edappadi K Palaniswami accused the ruling TVK of pushing Tamil Nadu into a severe debt trap due to administrative inefficiency, citing a significant increase in borrowings since they came to power.
- •Palaniswami highlighted that TVK added over Rs 1.5 lakh crore in fresh borrowings, raising the total debt burden to Rs 11 lakh crore with an annual interest liability of Rs 78,000 crore, during an election rally in Madurantakam.
- •The former chief minister warned that if current trends continue, the state's debt could exceed Rs 20 lakh crore in five years, leading to a massive tax burden on the public to service Rs 1.5 lakh crore in annual interest alone.
- •Palaniswami contrasted this with the AIADMK administration's fiscal discipline during the Covid pandemic, maintaining welfare delivery despite severe revenue losses from business closures and reduced tax collections.
- •He also criticized TVK for unfulfilled poll promises, including increasing the "Magalir Urimai Thogai" to Rs 2,500, providing Rs 4,000 monthly assistance to unemployed youth, and implementing a full farm loan waiver, while also alleging administrative failures and corruption.
Key Questions Answered
AIADMK general secretary Edappadi K Palaniswami alleged that fresh borrowings by the ruling TVK have raised Tamil Nadu's total debt burden toward Rs 11 lakh crore, with an annual interest liability of Rs 78,000 crore.
The bypoll in the Madurantakam Assembly constituency is scheduled to be held on October 6.
The AIADMK has fielded K Kanitha Sampath as its candidate for the upcoming Madurantakam Assembly constituency by-election.