Wed Sep 24 00:15:00 UTC 2025: **Summary:**

This article reports on a statement made by Pattali Makkal Katchi (PMK) leader Anbumani Ramadoss criticizing the financial management of the DMK-led Tamil Nadu government. Ramadoss cited a CAG report highlighting Tamil Nadu’s poor ranking (27th) among states with a revenue surplus, far behind Uttar Pradesh, which topped the list. He accused the government of using borrowed funds primarily for salaries and subsidies rather than capital expenditure and infrastructure development. He stated this is in direct opposition to the ‘Golden Rule’ that only capital expenditure should be financed through borrowings, and revenue expenditure should be covered through revenue receipts. Ramadoss pointed out that 16 states managed to generate a revenue surplus while Tamil Nadu struggles with a significant deficit.

**News Article:**

**Tamil Nadu’s Financial Management Under Scrutiny: PMK Leader Cites Damning Report**

**Chennai, India – September 24, 2025** – Tamil Nadu’s fiscal responsibility has come under fire following a scathing critique from Pattali Makkal Katchi (PMK) leader Anbumani Ramadoss. Citing a report from the Comptroller and Auditor General (CAG) titled “Financial Health of States: Rising Public Debt in Ten Years,” Ramadoss lambasted the ruling DMK government’s handling of the state’s finances.

According to the CAG report, Tamil Nadu ranks a dismal 27th among Indian states in terms of revenue surplus, a far cry from top-ranked Uttar Pradesh. Ramadoss accused the DMK, which had promised a “new dawn,” of lacking credibility in financial administration.

A key point of contention is the state’s spending habits. Despite significant borrowing (₹1,06,251 crore), Tamil Nadu allocates a comparatively smaller sum (₹57,230.96 crore) to capital expenditure than Uttar Pradesh, which spends over three times more (₹1,65,243 crore). Ramadoss claims that Tamil Nadu, along with 10 other states, is primarily utilizing borrowed funds to cover salaries and subsidies, a practice he deems unsustainable.

He emphasized the ‘Golden Rule’ of public finance, which dictates that borrowing should be reserved for capital expenditure, while revenue receipts should cover revenue expenses. He highlighted that 16 states in India managed to generate a revenue surplus in 2022-23, including Uttar Pradesh, Gujarat, Odisha, and Karnataka.

“The DMK government is borrowing money mainly to pay salaries to its employees,” Ramadoss stated.

The CAG report paints a grim picture for Tamil Nadu, placing it second only to Andhra Pradesh with a revenue deficit of ₹36,215 crore in 2022-23. The revelations are likely to fuel further political debate and put pressure on the DMK government to address the state’s mounting financial challenges.

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