Tamil Nadu treasury empty, debt crossing Rs 10L crore, says Piyush Goyal

CHENNAI: Union minister Piyush Goyal on Saturday said Tamil Nadu's treasury was empty and warned that the state was heading towards bankruptcy due to what he described as "ineffective and corrupt" DMK govt.

Releasing a white paper titled 'Tamil Nadu Government Financial Crisis' at BJP's state headquarters in Chennai, Goyal said Tamil Nadu's industries, fishermen and talented youth worked hard and generated resources for the state and demanded to know how the funds were utilised. "Despite this, the treasury stands depleted. Where has the money gone," he asked.

Accusing chief minister M K Stalin and his family members, including Udhayanidhi Stalin, Kanimozhi and V Sabarisan, of "looting" the state, Goyal said public finances were pushed into distress due to mismanagement. His remarks came a day after AIADMK general secretary Edappadi K Palaniswami targeted CM and his family during an election campaign in Jolarpet, and said Tamil Nadu effectively had "four chief ministers", a reference to CM, deputy CM and members of their family.

Goyal said Tamil Nadu's debt doubled over the past five years and was projected to cross Rs 10 lakh crore while Tangedco and other state-run entities together accounted for another Rs 2 lakh crore in liabilities.

"The chief minister has no clear answers and is instead attempting to divert public attention by attacking the Centre, without addressing the core issue," he said. Goyal alleged that despite receiving substantial devolution from the Centre, including additional funds of Rs 80,000 crore during Narendra Modi-led govt's tenure, state govt failed to explain how the money was utilised. "With a growing revenue deficit, govt is borrowing merely to meet day-to-day expenses. What assets have been created? What facilities have been provided to common man?" Goyal asked.

He said nearly Rs 76,000 crore would be paid as interest in the current financial year alone.

"After meeting salary commitments, very little is left for development or for securing state's future economic growth," he said.