P Chidambaram
Credit: PTI Photo
Chennai: Former Union Finance Minister P Chidambaram on Thursday termed as “flawed” his colleague Praveen Chakravarthy’s unfavourable comparison of debt levels of Tamil Nadu and BJP-ruled Uttar Pradesh, saying assessing a state's economic health solely on the basis of its total debt was misleading.
Chakravarthy, chairman of the Congress’ Data Analytics wing and chief of the All India Professional Congress, created a stir on December 28 comparing the debt levels of Tamil Nadu and Uttar Pradesh. He claimed Tamil Nadu “has the highest outstanding debt” among all states and termed the situation “alarming” leading to a sharp rebuke from the DMK and his own colleagues from the Congress like S Jothimani and Sasikanth Senthil.
The X post lent further credence to rumours that he was rooting for the Congress to walk out of the DMK alliance and join hands with actor Vijay’s Tamilaga Vetri Kazhagam (TVK). The Congress functionary had also met Vijay in December amid demand by his party for a share in power and more seats from the DMK in the April-May assembly elections.
Chidambaram had on Wednesday said he didn’t want to engage in a public discussion with “intellectuals” on economy as he wasn’t qualified enough to comment on it. However, he publicly refuted Chakravarthy on Thursday in a X post that began with New Year wishes – Chidambaram is a proponent of the DMK alliance and wants the Congress to continue in it.
“Assessing a state's economic condition based solely on its total debt is incorrect. From the US to the UK, Japan, France, and Canada, all developed countries see their total debt increase every year. India's total debt, as well as that of all its states, rises annually. This is normal. Total debt is not the right metric,” Chidambaram said.
The appropriate measure is what percentage the total debt is of the total output (GSDP) and in Tamil Nadu, this ratio has remained unchanged from 2021-22 to 2025-26.
“The fiscal deficit has been reduced each year, and the current estimate indicates that Tamil Nadu will achieve the 3 per cent limit set by NITI Aayog in 2025-26. This is commendable. Improving fiscal management further is agreeable, but comparing Tamil Nadu's economy with Uttar Pradesh's economy is flawed,” Chidambaram said.
The Tamil Nadu government is under criticism from several quarters over its increasing debt, which currently stands at Rs 9.21 lakh crore. As the principal opposition party from 2016-2021, the DMK government tore into the AIADMK for the state’s growing debt.