AIADMK general secretary and Leader of the Opposition Edappadi K. Palaniswami on Tuesday questioned Finance Minister Thangam Thennarasu over the rising revenue deficit of Tamil Nadu.

Rebutting the Minister’s recent observations on the financial health of the State government, Mr. Palaniswami said in a statement that the government’s revenue deficit increased from ₹36,215 crore in 2022-23 to ₹44,907 crore the following year and ₹49,279 crore in the current year. It was because of the COVID-19 pandemic that the State government’s revenue receipts went down and its expenditure rose. The reduction in revenue deficit in the subsequent two years was “natural” in view of the increase in the revenue receipts.

“It is a fact that the revenue deficit is much higher now than it was when we [AIADMK] were in power. The Minister should have clarified the position,” Mr. Palaniswami said.

The total amount of loans to be taken by the current DMK government, including what had been proposed for 2025-26, would exceed ₹5 lakh crore, making Tamil Nadu the top State in terms of borrowings. However, even 50% of the borrowings was not being used for capital expenditure. A major portion of the loans was being utilised only for revenue expenditure, he said.

Despite the claim of bringing down the ratio of outstanding debt to Gross State Domestic Product (GSDP) of Tamil Nadu, the proportion went up to 26.4% whereas it was less than 25% during the previous AIADMK regime, Mr. Palaniswami said.

Addressing the media in Salem, Mr. Palaniswami demanded the payment of a compensation of ₹30,000 per acre to farmers affected by the recent rain.

Meanwhile, the ADMK Workers’ Rights Retrieval Committee coordinator, O. Panneerselvam, wanted the level of moisture content in paddy to be increased to 22%.

He sought the payment of ₹1 crore to the family of K. Jagaber Ali, an anti-stone quarrying activist who was killed in Thirumayam of Pudukottai district.