• Dr.G. Kavitha

ABSTRACT Tamil Nadu is the second largest economical state in the country with Rs.15.96 lakh crore GSDP. It has a diversified manufacturing sector and features among the Indian states. It scores first rank in terms of number of factories and industrial workers. It has many firms to develop the industrial climate in the state. Supported by good infrastructure, Tamil Nadu is a favorable destination for investments. According to Indiaspend analysis of state budgets over the last five years, Tamil Nadu has seen the maximum increase of debt. Even though the debt to GSDP ratio remains below the national average of 20% it is an unhealthy trend in state economy. As per NitiAayog data the state’s economic growth (GSDP) fall down by 0.86% in 2016-17 compared to 2015-16. Due to various reasons the state has lost to attract industries and investments. During 2006-07,the state’s debt was just Rs:17257 crore,which was increased sharply to Rs:314366 crore in 2017-18, showing that liabilities have increased 18 times in the last 11 years. Many factors attributed for this state debt, a large component of public debt has originated from unproductive populist schemes and freebie culture of the successive governments since 2006. The state own departments such as TNSTC, and TNEB are fell under large debt. The causes of the indebtness and solutions are discussing in this article.

Keywords : debt, fiscal deficit, expenditure,GSDP,revenue, investments, freebies, economy.

"A COMPREHENSIVE LOOK ON TAMIL NADU PUBLIC DEBT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.598-619, January-2019, Available :http://www.jetir.org/papers/JETIR1901179.pdf

"A COMPREHENSIVE LOOK ON TAMIL NADU PUBLIC DEBT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp598-619, January-2019, Available at : http://www.jetir.org/papers/JETIR1901179.pdf