1. Tamil Nadu’s Borrowing Plan (Q1 2025-26): The State plans to borrow ₹20,000 crore in the first quarter of FY 2025-26, as per the RBI’s indicative market borrowing schedule for States.
  2. Mode of Borrowing: States like Tamil Nadu raise funds through State Development Loans (SDLs), which are auctioned by the RBI and must be repaid with interest upon maturity.
  3. Annual Borrowing & Repayment: Tamil Nadu aims to borrow ₹1,62,096.76 crore in 2025-26, with repayments of ₹55,844.53 crore, leading to a projected outstanding debt of ₹9,29,959.30 crore
  4. Debt-to-GSDP Ratio: For 2025-26, Tamil Nadu’s Debt-to-GSDP ratio is estimated at 26.07%, which is within the 28.70% limit set by the 15th Finance Commission.
  5. Borrowing Trends Among States: Maharashtra plans the highest Q1 borrowing at ₹50,000 crore, while Bihar, Gujarat, Maharashtra, West Bengal, and Uttar Pradesh together account for nearly 75% of the States’ total borrowings for Q1 2025-26.