Finance Minister Nirmala Sitharaman on Thursday, 12 February 2026, addressed concerns over rising public debt raised by DMK Rajya Sabha MP P Wilson during the Budget Session, asserting that fiscal responsibility must be shared by both the Centre and the states.
Responding to the intervention, Sitharaman underscored that managing and reducing debt is a common obligation across levels of government, while also turning the spotlight on Tamil Nadu’s borrowing trajectory.
“He talked about rising debt and how that’s not good. I just want to highlight the facts. The principle is one. We have to take care of reducing debt, whichever be, centre, state or everybody,” she said.
Citing figures attributed to former Tamil Nadu Chief Minister Edappadi K Palaniswami, the Finance Minister highlighted what she described as a sharp rise in the state’s debt burden in recent years.
“I move to Hon’ble member Wilson. He said rising debt is not good. So, I just want to highlight the fact. The principle is one, we have to take care of reducing debt. Whichever be it centre or state. And in this, not a member of this House, but with your indulgence, I’d like to quote the former chief minister of Tamil Nadu, Edappadi Palaniswami. He said, ‘For 73 years, successive governments in Tamil Nadu accumulated roughly Rs 5 lakh crore in total debt. In just four years under the DMK government, since 2021, the state added approximately Rs 4.56 lakh crore.’”
She further argued that while concerns were being raised about the Union government’s borrowing levels, similar scrutiny must apply to state finances as well.
“They want the debt that took 73 years to accumulate earlier but took just 4 years to double, they want that to go. So, TN state government borrowing can keep increasing but central government must reduce,” she remarked.
Hon’ble MP P. Wilson (@PWilsonDMK) spoke about India’s rising debt. I would like to quote former chief minister of Tamil Nadu Edappadi Karuppa Palaniswami (@EPSTamilNadu).
He said, “For 73 years, successive governments in Tamil Nadu accumulated roughly Rs 5 lakh crore in total… pic.twitter.com/RNVlsTHT7B
— Nirmala Sitharaman Office (@nsitharamanoffc) February 12, 2026
The exchange took place during the ongoing Budget Session of Parliament, which commenced on January 28 and is scheduled across 30 sittings over 65 days, concluding on April 2. Both Houses adjourned for a recess on 13 February 2026 and will reconvene on 9 March 2026 to allow Department-related Standing Committees to examine Demands for Grants of various ministries and departments.
Source: ANI
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