Hours after the new Tamil Nadu government assumed office, Viduthalai Chiruthaigal Katchi (VCK) president and Chidambaram MP Thol. Thirumavalavan said the state’s debt burden should be reduced through stronger economic growth, while cautioning against creating unnecessary fear over the financial situation.
Speaking to reporters in Delhi on Sunday, Thirumavalavan said Tamil Nadu’s economic policy should focus on increasing domestic production and overall state output in order to gradually reduce the debt burden.
“To achieve this, domestic production, the state’s economic output must be correspondingly enhanced,” he said.
“I express my hope and offer my best wishes that this government will prioritize the development of Tamil Nadu and work with earnest determination toward that end,” he added.
His remarks came after Chief Minister Joseph Vijay stated that the Tamil Nadu treasury had been left “empty” and that the state was burdened with debt of nearly ₹10 lakh crore. Vijay had also announced that the government would release a white paper on the financial situation.
Responding to those remarks, Thirumavalavan said the issue should be viewed in the proper economic context and not merely through the absolute debt figure.
“The Chief Minister has announced that the Tamil Nadu government treasury has been left empty and that they have been left with a debt burden of Rs 10 lakh crore, and that a white paper on it will be released transparently. But merely stating that Tamil Nadu’s debt is Rs 10 lakh crore will create a wrong impression among the people of Tamil Nadu.”
He added, “Debt should always be assessed in comparison with a specific benchmark. The correct way to assess debt is to compare it with the state’s Gross State Domestic Product, the GSDP. Tamil Nadu’s debt level is still within the limit fixed by the 15th Finance Commission. There is a prescribed limit up to which debt can be borrowed. That is a boundary defined by the Finance Commission, a ceiling fixed by the 15th Finance Commission. So, it is not appropriate to create fear by pointing only to the absolute size of the debt.”
Referring to the response from the DMK, Thirumavalavan noted that the previous government had not denied the existence of debt but had argued that it remained within permissible limits.
“In this regard, the former Chief Minister has given an explanation. He did not deny the claim that there is a debt burden of Rs 10 lakh crore. He only pointed out that the debt remains within the limit fixed by the Finance Commission. Therefore, the debt burden must be reduced, and accordingly the domestic output must be increased. Our economic policy must be framed in line with that. So, I hope and wish that this government will work with commitment, keeping Tamil Nadu’s development in mind.”
During the interaction, a reporter questioned whether Vijay’s statement about an “empty treasury” reflected a misunderstanding of the issue or an attempt by the new government to begin its administration by blaming the previous regime.
Responding to that question, Thirumavalavan said the Chief Minister may have relied on information provided by officials and stressed the responsibility of the bureaucracy in furnishing accurate data.
“I believe he would have made that statement based on the statistics given by officials. If officials provide incorrect information or mislead the government, that would not be good for governance and administration. Therefore, when such information is given, officials must act with great responsibility, that is my request.”
Another reporter pointed out that the VCK had supported the previous DMK-led government and asked whether the party had been unaware of the alleged financial condition of the state treasury.
Replying to the question, Thirumavalavan reiterated that while the state did carry debt, it remained within the borrowing limits prescribed by the Finance Commission.
“It is true that there is debt. But it is within a defined limit. The debt burden is within the limit fixed by the 15th Finance Commission. It is also being said from the DMK side that they reduced the earlier debt burden and paid both interest and principal.”
புதுதில்லியில் இன்று செய்தியாளர் சந்திப்பில்… pic.twitter.com/A1ZlUQD80w
— Thol. Thirumavalavan (@thirumaofficial) May 10, 2026
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