GSDP of TN to grow by 15.98% in 2024-25; debt stands at ₹ 8.53 crore: CAG

The report also states that the state continues to outperform the national average in per capita income.

Tamil Nadu’s economy has shown strong growth, with GSDP growing by 15.98 percent in 2024-25 from 13.34 percent in the previous year, while total debt rose to ₹8.53 trillion, with a debt-to-GSDP ratio of 27.38 percent, which is 28 percent within the target range of the Finance and Commission. Tamil Nadu Fiscal Responsibility Act.

The official report of the Comptroller and Auditor General of India titled “State Finance 2024-25” was tabled in the State Assembly on Tuesday.

The report also noted that the state continued to outperform the national average in per capita income and its contribution to the national GDP stood at 9.43 percent in 2024-25.

Income deficit

However, he added that the revenue deficit has increased from ₹45,121 crore in 2023–24 to ₹45,840 crore in 2024–25 and that the state has not met the Fifteenth Finance Commission’s (15th FC) projection of achieving a revenue surplus despite the increase in GDP.

The state’s fixed expenditure — expenditure on salaries and wages, pensions and interest payments reached ₹ 1,76,676 crore — accounts for nearly 53.75 per cent of total revenue and 62.47 per cent of total revenue.

Interest payments

Almost 21 per cent of revenue went to interest payments and was on an upward trend in 2022-23, reflecting the rising debt burden.

The report further states that the subsidy provided by the state accounts for 16 percent of the total revenue, an increase of ₹ 14,854 crore (39.35 percent) over the previous year.

This increase was mainly due to schemes like the Magalir Urimai Thogai scheme and the subsidy provided by TNEB on behalf of farmers who used agricultural pump sets during the year.

Published – 9 Sep 2026 04:00 IST