Union Finance Minister says state borrowing is justified as long as it is spent on capital expenditure

Union Finance Minister Nirmala Sitharaman released Daughters of Kanchi on Thursday. B. Velankanni Raj. | Photo Credit: VELANKANNI RAJ B.

Union Finance Minister Nirmala Sitharaman said state governments must channelize their borrowed funds into long-term capital expenditure such as schools and hospitals rather than relying heavily on revenue expenditure such as cash distributions, especially when financial resources are tight.

“Borrowing is not the issue. What matters is how the borrowed money is used. Does it create wealth, improve education, support industry or create employment? That should be the focus. States can borrow up to 3% of their gross domestic product,” she said.

Ms. Sitharaman, who was in Kancheepuram to launch the book Daughters of Kanchi at SSKV College of Arts and Science for Women, said, “Standing here in Kancheepuram, the first thing that comes to my mind is from ancient times, this city was famous for education.” The book was released in the presence of Shankara Vijayendra Saraswathi Swami of Kanchi Kamakoti Peetam.

The Finance Minister also pointed out how people from all over the world used to come to Kancheepuram to learn. “They could have been Chinese, they could have come from Tibet, or…I say this with a bit of hesitation…they could also have come from the northern part of India. Even those from the northern direction of Bharat can come here and learn, and people from here can also come here. That’s why I say this without any political angle; when it comes to education, you can go from here to the north, from the east, or from the north to the north.”

CK Raman, secretary of Conjeevaram Hindu Education Society and SSKV Institutions, said the SSKV group is now home to 10,000 children. Nandita Krishna, president of Conjeevaram Hindu Educational Society and SSKV Group of Institutions, said, “In 1904, two learned gentlemen from Kanchi – Diwan Bahadur Sri Somasundara Sastriar and Sri Ramanatha Sarma decided to start a school for girls. Parvathammai, the first headmistress, used to send their parents from house to house with requests.” She added that the book commemorates people who have contributed in various ways to the growth story of Conjeevaram Hindu Education Society and SSKV Group. The book titled Daughters of Kanchi talks about trends in women’s education, Kancheepuram and how the SSKV group came into existence.

Published – 26 Jun 2026 0:46 IST