The state government has finalized estimates for borrowing and repayment based on the ceiling fixed by the Government of India. For the 2026-27 fiscal year, the state plans to secure loans totaling Rs 1,73,445 crore while making repayments of Rs 51,971 crore. These figures include liabilities under the Public Account alongside Public Debt.
Revised budget estimates place the net increase in public debt and liabilities at Rs 1,20,964 crore, lower than the Rs 1,21,653 crore projected in the interim budget. Consequently, outstanding liabilities as of March 31, 2027, are expected to reach Rs 10,98,768 crore, representing 27.01 percent of the Gross State Domestic Product (GSDP).
Public debt is expected to decrease by Rs 9,523 crore once the Chennai Metro Rail Phase-II project is formally approved as a Central Sector Project and book adjustments are completed. The state aims to maintain debt sustainability, with the liability-to-GSDP ratio projected to decline to 26.57 percent in 2027-28 and 26.10 percent in 2028-29.
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