Tamil Nadu's Interim Budget Estimates 2026–27 put outstanding debt at ₹10.71 lakh crore (₹10.62 lakh crore excluding ₹9,523 crore tied to Chennai Metro Phase-II), with a debt-to-GSDP ratio of 26.12%. The State plans to borrow ₹1.79 lakh crore and repay ₹60,413.42 crore. The revenue deficit is ₹48,696.32 crore, and the fiscal deficit ₹1.21 lakh crore, falling from 3.48% to 3% of GSDP. Tamil Nadu's share in central tax devolution has fallen from 7.9% to 4.079% since the 9th Finance Commission, a loss of ₹3.17 lakh crore, and the 16th Finance Commission raised it by only 0.44%.