Vijay took oath as CM, but was shocked to see the empty treasury! ‘Thalapathy’ clashed with Stalin

A new era has begun in Tamil Nadu politics. Superstar-turned-politician Thalapathy Vijay took oath as the Chief Minister on Sunday, breaking the 60-year-old tradition of the state. This is the first time in six decades that a third party government has been formed in Tamil Nadu apart from AIADMK and DMK. But, as soon as he assumed power, there was a tussle over ‘money’ between Vijay and former Chief Minister MK Stalin.

Vijay Ka Vaar: ‘Treasury empty and debt of Rs 10 lakh crore’

After taking oath as Chief Minister, Vijay raised the issue of the financial condition of the state among his supporters. He directly attacked the previous government and said that they had inherited an ’empty treasury’. Vijay claimed that Tamil Nadu currently has a debt of more than Rs 10 lakh crore and there is a severe shortage of funds to run the government. His statement has created a stir in the politics of the state.

Stalin’s counterattack: ‘Do not deceive the public’

Former Chief Minister MK Stalin immediately gave a sharp reply to Vijay’s allegations. Stalin said Tamil Nadu’s debt was within limits and Vijay should not ‘cry about lack of funds’ right now. Stalin reminded that the state’s financial position had been made clear in the February budget itself. He sarcastically asked whether Vijay did not know this? Stalin said that after coming to power by making big promises, now efforts are being made to divert the issues.

Is Tamil Nadu really submerged? These are the figures

Talking about statistics, Tamil Nadu is the second largest state in the country in terms of GDP after Maharashtra. But even in terms of debt it comes second. According to the interim budget of February 2026, the debt on the state is estimated to increase to Rs 10.71 lakh crore by March 2027. Rules say the debt should be 20% of the gross state income (GSDP), but in Tamil Nadu it is going to reach 26.12%. However, experts consider loans up to 30% safe.

After all, where is the money going?

Two main reasons are being given behind this financial condition of Tamil Nadu. First, reduction in the tax share received from the Centre. Tamil Nadu’s share has declined from 7.93% to 4.07%, causing a loss of Rs 3.17 lakh crore to the state. The second reason is excessive expenditure. About 27% of the budget goes towards salaries and pensions, while more than 30% is being spent on distributing subsidies. This subsidy burden is increasing at the rate of 5% every year.

Running out of money just paying interest: 215 crores will be spent daily!

The most shocking figure is regarding interest. Tamil Nadu has so much debt that it is struggling just to pay the interest. According to the data of 2026-27, the state government will pay Rs 78,677 crore only as interest in a year. This means that every day around Rs 215 crore is being spent only on paying ‘interest’. In the coming years, this interest is expected to increase to beyond Rs 1 lakh crore annually, which will be the biggest challenge for the new government.