Chennai, April 4 Senior BJP leader Piyush Goyal on Saturday released a document titled "Tamil Nadu Government Financial Crisis - comprehensive multi-perspective whitepaper," prepared by his party's Professional Cell in the state, and sought to know where the money received as GST compensation and the state's borrowings have gone.
He sought to know how the state treasury could be empty despite receiving over Rs 80,000 crore in GST collections from the Centre and accused the DMK government of causing a financial crisis.
With a debt-to-GSDP ratio of 26.4 per cent – just below the Finance Commission’s 28.7 per cent ceiling – the state’s fiscal health is deteriorating rapidly due to persistent revenue deficits, skyrocketing interest payments, and systemic payment defaults, the paper said.
"The DMK’s mismanagement has exacerbated structural imbalances, with off-budget borrowings and bleeding public sector undertakings (PSUs) masking the true extent of liabilities. GST has been a boon to TN finances with the measure yielding at least Rs 80,000 crores extra than what the state was achieving with its own taxation system," the 65-page document said.
The outstanding debt reached Rs 8.34 lakh crore (26.41 per cent of GSDP) by March 2024, projected to hit Rs 10.71 lakh crore by March 2027. Huge off-budget borrowings through PSUs like TANGEDCO obscure the fiscal picture, it said.
The Union minister accused the state government of "systemic delays" in salaries, provident fund, gratuity, and contractor payments, notably a 25-month PF default for 28,000 TNSTC workers. He said the DMK failed to capitalise on GST gains, despite it being an unprecedented revenue boost.
On revenue deficit, the whitepaper said it was important to acknowledge the fact that, but for the Covid period, the AIADMK government had better debt management than the present DMK government, the BJP document said.
"The worst revenue deficit to GSDP ratio pre-COVID was 1.47 per cent. This government hasn’t bettered that even once in 3 actual years of governance in post Covid era," it said.
In Tiruchirappalli, responding to the BJP's claims, DMK MP Kanimozhi said the Centre should first address the pressing issue of rising LPG cylinder prices before talking about Tamil Nadu.
"Raising imaginary issues during elections serves no purpose," she told reporters.
Replying to a question on the DMK accusing him of following "dynasty politics," Goyal told reporters that he worked in the BJP for 40 years to become a leader. "After my father passed away, I was given an opportunity in Delhi by Prime Minister Narendra Modi. I worked as an ordinary karyakarta. There is a difference in going up the ladder through hard work, where there's no stopping, and someone from a family occupying the top position. A doctor's son can become a doctor," he said.
But in the DMK, it was only the first family that would dominate. After the late chief minister M Karunanidhi, his son M K Stalin became the chief minister, and his deputy chief minister son Udhayanidhi is waiting to be anointed, Goyal said.
"Both the Congress and the DMK are responsible for perpetuating family rule. AIADMK leaders: M G Ramachandran or J Jayalalithaa didn't bring family politics. And AIADMK chief Edappadi K Palaniswami's son is not in politics," the BJP leader said.
Goyal appealed to the people to be wise this time and vote out the family rule in Tamil Nadu.