Tamil Nadu Minister E V Velu Counters Opposition Allegations on State Debt Burden
In a detailed rebuttal in the state assembly on Thursday, Tamil Nadu Public Works Department Minister E V Velu addressed claims by the opposition regarding the state's financial situation. Velu stated that the DMK government, which took charge in 2021, inherited a significant debt burden from the previous AIADMK administration, totaling 6.45 lakh crore, which includes both principal and interest payments.
Debt Figures and Inherited Financial Liabilities
Minister Velu clarified that when the DMK government assumed office, the state's debt stood at 4.57 lakh crore. Since then, the government has paid 1.85 lakh crore as interest on this inherited debt, leading to a combined financial burden of 6.45 lakh crore. In contrast, Velu emphasized that the DMK government's own borrowing amounts to only 2.85 lakh crore, a figure he presented to counter allegations of excessive debt accumulation.
He specifically responded to BJP floor leader Nainar Nagenthran's claim that the DMK has imposed a debt load of 5 lakh on every family in Tamil Nadu. Velu termed such opposition claims as "untrue" and misleading, arguing that they misrepresent the facts to build a narrative of financial mismanagement.
Funding for Development and Welfare Schemes
Velu defended the government's borrowing practices, stating that loans were taken to fund essential development projects and welfare schemes. He highlighted that the DMK government has continued and funded initiatives announced by the previous regime, including spending 8,560 crore on PWD works worth 11,923 crore announced by the Palaniswami-led administration before leaving office.
Additionally, the government allocated 13,898 crore for highway projects and covered 58% of the 4,055 crore required for constructing 11 medical colleges announced during the AIADMK tenure. Velu questioned the opposition's stance, asking, "Are you suggesting we should not launch schemes such as Pudhumai Penn and Naan Mudhalvan or fund projects announced by the previous government?"
Political Context and Accusations
The minister accused AIADMK general secretary Edappadi K Palaniswami and his allies of distorting facts to create a perception that the DMK government has pushed Tamil Nadu into a debt trap through massive borrowing. Velu asserted that the opposition's narrative ignores the inherited liabilities and the government's efforts to manage state finances responsibly while prioritizing public welfare and infrastructure development.
This exchange underscores the ongoing political debate over fiscal management in Tamil Nadu, with the DMK defending its record against criticism from both the AIADMK and BJP.
