Former IPS officer and founder of ‘We the Leader’, K. Annamalai, has urged the newly formed Tamil Nadu government to constitute a high-level consultation group comprising economists, educationists, and domain experts to navigate the state’s severe financial crisis. The recommendation follows a white paper on state finances released on June 16 by the newly elected Tamilgaga Vettri Kazhagam (TVK) government, led by actor-turned-politician Chief Minister Joseph Vijay. The report revealed that the state’s direct debt has neared ₹10 lakh crore, expanding to ₹13.18 lakh crore when including the liabilities of Public Sector Undertakings (PSUs).
Analyzing the figures, Annamalai pointed out that the ₹10 lakh crore debt translates to a per capita burden of ₹1,28,934 for every individual in the state, with interest payments alone consuming 22.8% of the state’s total revenue. He noted that the State’s Own Tax Revenue (SoTR) to Gross State Domestic Product (GSDP) ratio has deteriorated from 5.93% in 2021–22 to 5.45% by 2025–26, citing systemic corruption and the undervaluation of real estate registrations as primary causes for the revenue slump. Terming the white paper a “post-mortem” of the financial mismanagement under the previous five-year DMK regime, he cautioned the current government against using the report as an excuse for complacency, advising them instead to treat it as a roadmap for immediate structural corrections.
Beyond economic concerns, Annamalai highlighted a worrying demographic shift, warning that Tamil Nadu’s working-age population is projected to decline steadily by 2031, leaving the government with a very narrow window to boost revenue and curb debt. Concurrently, the former IPS officer addressed a recent controversy in Kanchipuram district, where a video surfaced showing over 20 TVK party workers entering a government school classroom to hang CM Vijay’s photograph and shoot social media reels. Strongly condemning the incident, Annamalai stated that political affiliation does not grant anyone the right to disrupt educational institutions and requested CM Vijay and School Education Minister Rajmohan to ensure party cadres refrain from such undisciplined activities in the future.
