Congress leader flags alarming debt in Tamil Nadu, draws backlash

Congress leader Praveen Chakravarty has criticized Tamil Nadu's rising debt levels as alarming, prompting sharp internal party backlash. Senior leaders, including P Chidambaram, have defended the state's economic metrics ahead of assembly elections.

In a recent controversy within the Indian National Congress, party leader Praveen Chakravarty raised concerns over Tamil Nadu's debt situation, describing it as "alarming." His comments have triggered significant criticism from within the party, particularly as the Congress is allied with the ruling DMK in the state.

Senior Congress figure P Chidambaram has come out in defense of the DMK government, emphasizing the state's strong economic indicators such as the debt-to-GSDP ratio and fiscal deficit. This internal discord unfolds against the backdrop of upcoming assembly elections, originally slated for 2024 but referenced in recent discussions.

Chakravarty's remarks highlight ongoing debates about Tamil Nadu's economy, including its debt levels and fiscal health. Party leaders argue that the state's metrics remain robust despite national economic pressures. No specific figures were detailed in the reports, but the controversy underscores tensions in the Congress-DMK alliance as political alignments are scrutinized ahead of polls.

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Illustration of the 16th Finance Commission report release, highlighting balanced tax shares for southern states and reforms like power privatization.
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16th finance commission balances southern states' concerns and equity

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The 16th finance commission has released its recommendations for 2026-2031, retaining states' share in the divisible tax pool at 41 percent. Southern states' allocation has risen from 15.8 percent to 17 percent, while emphasizing privatization of the power distribution sector and debt cleanup. The commission urged states to discontinue off-budget borrowings and rationalize subsidy schemes.

Following controversy over debt comments, Congress MP S Jothimani has accused the Tamil Nadu unit of internal conflicts and ideological dilution, warning it risks destruction ahead of elections.

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After a lengthy meeting in Delhi, the Tamil Nadu Congress has decided to maintain its alliance with the DMK ahead of the upcoming state elections. Party leaders sought more seats while emphasizing the coalition's integrity amid internal differences.

West Bengal Chief Minister Mamata Banerjee held a rally in Singur, countering Prime Minister Narendra Modi's accusations of 'anti-industry' policies. She inaugurated and laid foundation stones for 1,694 projects worth Rs 33,551 crore. The event occurred months ahead of state assembly elections.

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The Indian National Congress's ongoing decline traces back to the 1969 party split and subsequent centralization of power, according to political analyst Sanjaya Baru. This centralization, centered on the Nehru-Gandhi family, prevented organizational revival despite several opportunities. Meanwhile, the BJP risks a similar fate under Narendra Modi's leadership style.

Yathindra Siddaramaiah, son of Karnataka Chief Minister Siddaramaiah, has dismissed rumors of a leadership crisis, stating there will be no changes in the CM position. Supporters of the deputy CM have criticized his remarks.

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During the Winter Session of Parliament, Bharatiya Janata Party president JP Nadda criticised the Congress for not giving due respect to the national song Vande Mataram. He linked the issue to historical decisions in a Congress-dominated era. The debate highlights ongoing political tensions over cultural and decolonisation narratives.

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