The borrowings by Tamil Nadu was well within the "permissible" level and its debt-level remained under control, the state Assembly was informed today.
Rejecting DMDK allegations that the state has been resorting to excessive borrowing, state Finance Minister O Panneerselvam, while replying to budget discussions, said in the House that the overall debt to Gross State Domestic Product (GSDP) ratio for 2014-15 would be 18.91 per cent as against the permissible limit of 25.2 per cent under the Tamil Nadu Financial Regulation Act 2003.
As per the 13th Finance Commission recommendation, the annual borrowing limit for Tamil Nadu during 2014-15 was fixed at Rs 28,267 crore, but the state has decided to restrict the net borrowing to Rs 25,000.22 crore, Panneerselvam said.
While the debt level of Andhra Pradesh, Karnataka, Kerala, Maharashtra and Gujarat was 22.4 per cent, 20.9 per cent, 23.9 per cent, 19.1 per cent and 23.2 respectively, Tamil Nadu had one of the lowest ratios among three states like Chattisgarh (14.6 per cent) and Haryana (18.4 per cent), he said.
In his reply on the 2014-15 state budget, which the House approved, Panneerselvam said the erstwhile DMK regime had left the state economy in a poor state, but was now levelling accusations against the budget proposals of the AIADMK regime.
DMK chief M Karunanidhi had termed the budget as 'cotton candy' for children.
"It is not cotton candy but full meals to everyone living in the state," Panneerselvam said.
The Assembly passed some bills and was then adjourned sine die.
