Tamil Nadu’s outstanding liability from open market borrowing was over ₹ 6 lakh crore as on March 31, 2024.

According to the Handbook of Statistics on Indian States 2023-24 released by the Reserve Bank of India (RBI), Tamil Nadu’s outstanding liabilities from open market borrowings as on March 31, 2024 were ₹6,00,993 crore.

According to the Comptroller and Auditor General of India (CAG), the total liability of the state government generally consists of the state’s internal debt (market loans, advances and advances from the RBI, special bonds issued to the National Small Savings Fund and financial loans). institutions, among others), and loans and advances from central government and public account obligations.

Including UDAY bonds, loans from banks and financial institutions, and the Centre, among others, the state’s overall outstanding liability stood at Rs 8,34,544 crore at the end of March 31, 2024, RBI data reveals. As on March 31, 2023, the total outstanding liabilities for Tamil Nadu were Rs 7,41,498 crore.

To meet their funding requirements, states including Tamil Nadu borrow from the open market by issuing bonds called State Development Loans. Auction of bonds is done by RBI. The CAG’s state finance audit report for the year ended March 2023, tabled in the recently concluded Assembly session, contains details of outstanding market loan principal and interest over the next ten years (after 2023-24).

The state’s liability on account of interest will be ₹ 28,263.67 crore, and the liability towards the principal amount of market debt in the next 10 years (from 2023-24) will be ₹ 3,75,951.97 crore, the report added.

According to the state budget for 2024-25, the Tamil Nadu government plans to borrow a total of ₹ 1,55,584.48 crore and repay ₹ 49,638.82 crore in 2024-25.

As a result, the outstanding debt, as on March 31, 2025, will be Rs 8,33,361.80 crore. This is 26.41% of Gross State Domestic Product (GSDP) in 2024-25, it further said.

Outstanding guarantees of the state government at the end of March 31, 2024, as per budget estimates, were ₹ 90,451.5 crore, RBI data said.

The total outstanding guarantees of the State Government as on 31 March 2023 was ₹ 90,709.22 crore. This constituted 43.72% (₹2,07,492.40 crore) of total revenue receipts in 2021-22, and 3.84% (₹23,000) of GSDP. 64,514 crore at current prices), the CAG report said.