Praveen Chakravarty, a close aide to Congress leader Rahul Gandhi and Chairman of the All India Professionals’ Congress, has ignited a political controversy by declaring that Tamil Nadu now carries the highest outstanding debt among all Indian states, describing the situation as “alarming.”
In a widely shared post on X accompanied by comparative charts, Chakravarty highlighted a dramatic shift: in 2010, Uttar Pradesh’s debt was more than double Tamil Nadu’s, but the southern state has now overtaken all others in absolute terms. He noted that Tamil Nadu’s interest payment burden ranks third-highest nationally, after Punjab and Haryana, and its debt-to-GDP ratio remains elevated compared to pre-COVID levels.
The post quickly escalated tensions within the I.N.D.I. Alliance, as Tamil Nadu BJP president K. Annamalai reposted and amplified the criticism, accusing the ruling Dravida Munnetra Kazhagam (DMK) of doubling the state’s debt in five years through reckless borrowings to cover deficits and inflate growth figures. Annamalai questioned brewing frictions between DMK and Congress, suggesting a revival of old alliance strains.
Recent RBI and state budget data corroborate concerns over Tamil Nadu’s fiscal position. As of projections for 2025-26, the state’s outstanding liabilities are expected to reach nearly ₹9.3 lakh crore, the highest in absolute terms among Indian states. While its debt-to-GSDP ratio hovers around 26%—moderate compared to states like Punjab (over 46%)—the sheer scale of borrowings has drawn scrutiny.The public exchange has intensified speculation about widening rifts in the DMK-Congress partnership, key allies in the national opposition bloc. Online reactions ranged from supporters defending DMK’s welfare and infrastructure spending to critics highlighting rising interest burdens.
Neither the DMK government nor Congress leadership has officially responded to Chakravarty’s remarks as of this report. Political analysts view this as a potential flashpoint, that could widen the fissures within the Congress-DMK.
This latest public criticism from Chakravarty comes against the backdrop of his controversial meeting earlier this month with Tamilaga Vettri Kazhagam (TVK) president and actor-turned-politician Vijay.
The December meeting at Vijay’s residence sparked intense speculation about potential Congress outreach to TVK ahead of the 2026 Assembly elections, causing unease within the Tamil Nadu Congress unit and the DMK alliance. Reports alleged discussions on alliances, with some claiming Vijay even spoke to Rahul Gandhi during the meet. While Chakravarty downplayed it as informal with “no politics on the plate,” the episode led to internal complaints against him for alleged party discipline violations and fueled perceptions of parallel backchannel talks undermining DMK negotiations.
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