CHENNAI: A CAG report on Tamil Nadu government’s FY24 finances had appreciation for a sustainable debt to GSDP ratio but cautioned it on multiple counts, including elimination of revenue deficit, drastic reduction on capital expenditure, and rising interest payments.

The state was borrowing to meet current consumption and repayment on borrowings instead of creating capital or development activities, the CAG said. The state’s Gross State Domestic Product (GSDP) grew 10.92% from Rs 17.43 lakh crore in FY20 to Rs 27.21 lakh crore in FY24 with a total debt of Rs 7.62 lakh crore.

While TN’s revenue receipts grew by 8.55% over the previous year, total expenditure went up from Rs 3.26 lakh crore to Rs 3.59 lakh crore, a jump of 9.89%. The state used 52% of its revenue expenditure on interest pa

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