Q3 Borrowing Plan
Tamil Nadu Q3 Borrowing and Fiscal Overview: Tamil Nadu has announced plans to borrow ₹39,000 crore in the third quarter of FY 2025–26. This borrowing is aligned with the RBI’s indicative market borrowings schedule for states. The funds will contribute to the total annual borrowing target of ₹1,62,096.76 crore for the fiscal year.
Static GK fact: Tamil Nadu is the tenth largest economy among Indian states by nominal GSDP.
Total Borrowing and Repayment
For FY 2025–26, Tamil Nadu plans repayments of ₹55,844.53 crore alongside the new borrowings. The projected outstanding debt as on March 31, 2026, is expected to reach ₹9,29,959.3 crore, reflecting careful fiscal management.
Debt to GSDP Ratio
The Debt to Gross State Domestic Product (GSDP) ratio is estimated at 26.07%, comfortably within the 28.70% limit set by the Fifteenth Finance Commission. This ratio indicates that the state maintains debt sustainability while meeting development expenditure requirements.
Static GK Tip: The Fifteenth Finance Commission provides fiscal parameters for states to ensure sustainable borrowing and spending practices.
Revenue and Tax Collections
As of August 2025, the State’s Own Tax Revenue stood at ₹74,942.53 crore, forming 75.3% of total revenue. This highlights the state’s reliance on tax collections to meet budgetary needs and fund key projects.
Fiscal and Revenue Deficit
By August 2025, Tamil Nadu recorded a revenue deficit of ₹25,686.65 crore and a fiscal deficit of ₹37,082.06 crore. The fiscal deficit reflects the gap between total expenditure and total revenue, necessitating the planned borrowings.
Static GK fact: Fiscal deficit is a critical indicator of state financial health, often monitored by the RBI and Finance Commission.
Implications for Financial Planning
The borrowing plan ensures adequate liquidity for infrastructure projects, social welfare schemes, and debt servicing. The state’s prudent management of Debt to GSDP ratio and controlled fiscal deficit supports long-term economic stability.
Static GK Tip: Market borrowings by states are usually through State Development Loans (SDLs) issued via the RBI.
Static Usthadian Current Affairs Table
Tamil Nadu Q3 Borrowing and Fiscal Overview:
| Topic | Detail |
| Q3 Borrowing Plan | ₹39,000 crore planned for FY 2025–26 |
| Total Borrowing | ₹1,62,096.76 crore |
| Repayments | ₹55,844.53 crore |
| Outstanding Debt | ₹9,29,959.3 crore by March 31, 2026 |
| Debt to GSDP Ratio | 26.07%, within 28.70% limit |
| Own Tax Revenue | ₹74,942.53 crore as of August 2025 |
| Revenue Deficit | ₹25,686.65 crore as of August 2025 |
| Fiscal Deficit | ₹37,082.06 crore as of August 2025 |
| Key Regulatory Body | RBI |
| Finance Commission Reference | Fifteenth Finance Commission |
