P. Chidambaram Rejects Comparison of TN Debt

Congress leader Praveen Chakravarty’s comments on Tamil Nadu’s debt situation have led to strong criticism from senior leaders within his own party. His comparison of Tamil Nadu’s debt with that of Uttar Pradesh did not go down well with party veterans.

Former Finance Minister and senior Congress leader P. Chidambaram said Chakravarty’s view was wrong. He said it is normal for government debt to rise every year and this does not mean the economy is weak.

Chidambaram said it is wrong to judge a state’s economy by looking only at its total debt. He pointed out that even developed countries such as the United States, the United Kingdom, Japan, France and Canada see their total debt rise every year.

He also added that India’s total debt increases annually, just like the combined debt of all Indian states. According to him, this is a normal part of economic management and does not by itself indicate financial trouble.

The remarks have sparked an internal debate within the Congress party over how Tamil Nadu’s financial situation should be viewed and discussed publicly.