Despite Fund Crunch, TN Ensures High GSDP Growth While Spending on Welfare

DESPITE inheriting an unenviable fiscal position from the previous AIADMK regime, compounded by the impact of Covid-19, subsequent natural disasters and the alleged discriminatory attitude of the Union government towards Tamil Nadu in releasing funds, the present DMK government has managed to maintain a growth rate higher than that of the national average while spending more on welfare as well.

- EXPRESS NEWS SERVICE @ Chennai

Although there have been concerns about increased debt burden, especially from the opposition parties, the government has reiterated time and again that the fiscal deficit and the debt to Gross State Domestic Product (GSDP) ratio are well within the limits stipulated by the Union government.

The GSDP growth rate of Tamil Nadu in 2024-25 at constant prices was an impressive 9.69%, which was the highest in the country (6.5%). The first-ever economic survey of Tamil Nadu brought out by the State Planning Commission has predicted Tamil Nadu to retain a strong real growth rate of around 9% in short-term with an inflation rate of around 5%.