Tamil Nadu to raise ₹39,000cr in Q3 FY26
Tamil Nadu is gearing up to borrow ₹39,000 crore between October and December 2025 to help fund state projects and services.
This move follows the Reserve Bank of India's schedule and is a regular part of how states manage their finances.
Debt levels and targets
For 2025-26, Tamil Nadu plans to borrow over ₹1.62 lakh crore in total while repaying about ₹55,845 crore.
By March 2026, the state's debt is expected to reach nearly ₹9.3 lakh crore—but its debt-to-GSDP ratio (26.07%) will still be under the target of 28.70% prescribed under the 15th Finance Commission.
Revenue and fiscal deficit
Tamil Nadu's own tax collections are up this year—₹74,943 crore so far—making up three-fourths of its total income till August 2025.
Still, expenses are outpacing earnings: the state faces a revenue deficit of nearly ₹25,687 crore and a fiscal deficit topping ₹37,000 crore at this point in the financial year.