Sumanthi Raman Warns Of Rising Debt Amid AIADMK-DMK Freebie War In Tamil Nadu

17 hours ago

On this India Today broadcast, political analyst Sumanthi Raman critiques the escalating 'competitive populism' between the AIADMK and DMK in Tamil Nadu. Raman argues that while targeted welfare like student laptops and cycles are beneficial, unconditional cash handouts are detrimental, stating, 'I don't think so, Akshita, because I think this kind of competitive populism is not healthy for the state.' The discussion highlights the AIADMK's promise of ₹2,000 for women, doubling the DMK's current ₹1,000 offering. Raman points to the state's fiscal health, noting that debt has surged from ₹4.69 lakh crore to over ₹10 lakh crore in five years, largely funded by borrowing. The debate features AIADMK spokesperson Kovai Sathiyan and DMK spokesperson Salem Dharani Dharan, who clash over financial management, revenue deficits, and the efficacy of social welfare spending versus 'freebies' ahead of the 2026 assembly elections.

Transcript

00:00Joining me on this broadcast, we've got Kowei Satyan, spokesperson of the AIA DMK,

00:04Sumansi Raman, political analyst, and Salem Dhani Dharan, spokesperson of the DMK.

00:09Mr. Sumansi Raman, I'd like to begin with you first on your views of this promise that's been made by the AIA DMK.

00:15Do you deem it a game changer, this reach-out outreach to women?

00:19I don't think so, Akshita, because I think this kind of competitive populism is not healthy for the state.

00:27I have no problem with giving freebies in a particular targeted way.

00:33So, for instance, the laptop scheme is an excellent scheme.

00:36I have no problem with that.

00:37The cycle for school students, that is another excellent scheme.

00:43Even the free bus travel for women, in some ways, is a fairly good scheme.

00:49But this kind of cash distribution, and that also, I'm giving 1,000, so you'll give 2,000.

00:55Now, the DMK's manifesto is not out yet, so who knows, they may offer 3,000.

01:00See, look, you have to understand that this is being funded by borrowing.

01:05While it is nice to say that the state has got, you know, among the other states in India, we are doing well, which is a fact.

01:12The fact is also that we have doubled our debt in the last 5 years.

01:17From 4.69 lakh crore, we are now above 10 lakh crore in debt, almost 11 lakh crore in debt.

01:24That is not even including the debt of the state-owned corporations like the Electricity Board and the Transport Corporation.

01:32So, there is a problem.

01:33So, this money, which we are distributing, is being got by borrowing.

01:41For instance, now, the newly announced modified pension scheme of the government.

01:47Now, the initial outlay is 13,000 crore.

01:49Every year, it will be starting from 12,000 crore.

01:52It will go up every year.

01:54So, imagine, we are burdening the exchequer and already only 15% is going for infrastructure and for capital expenditure.

02:03The rest of it is going and paying salaries, pensions, interest and freebies.

02:08That's about it.

02:09So, I think there needs to be a serious rethink.

02:12But neither of the parties.

02:13See, I can understand why ADMK is doing it.

02:16Because DMK is doing it.

02:17Why is DMK doing it?

02:19Because ADMK is doing it.

02:20No, it's comparative freebies.

02:21Yeah, I agree.

02:22Absolutely.

02:22You know, I referred to Tamil Nadu as the OG state of freebies.

02:26Are we taking it too far as a question?

02:28Because we are seeing competitive cash outs now taking place.

02:31Dhani Darin, your opening comments on the AIA DMK's promise.

02:34Is this worrying for the DMK?

02:36Are you going to make it 3,000 now from 2,000?

02:39See, the manifesto committee will come up with their suggestion.

02:42So, I don't want to speculate.

02:43But I will tell you this.

02:44This term freebie in itself is a misnomer.

02:47It is social welfare spending.

02:48I will tell you this.

02:50Tamil Nadu's finances, are they doing bad or good?

02:52I will say it's good.

02:53For example, under AADMK from 2016 to 21, Tamil Nadu's GSDP was 11 lakh rows in 2016 and became 17 lakh rows, which means a 52% rise from 16 to 21.

03:02After DMK came to power, the GDP, which started at 17 lakh rows, had now become 35 lakh rows in 2026 projected.

03:1225 to 26, 35.5 lakh rows, which is about a 105% increase as per the data.

03:18The data is not going to link.

03:19And again, the revenue to GDP has increased by 2 percentage points.

03:23What it does is that there is a drastic increase in GSDP plus a drastic increase in revenue.

03:28The revenue increase from AADMK's time to now would be about 130% increase, which means the state has more money.

03:35So, when you can't compare debt to natural terms, debt to GDP, and not just debt to GDP, but also look at future growth potential.

03:41So, many of the schemes like giving 1,000 rupees to government school girls joining colleges has nearly doubled the GER of government school girls going to college.

03:49Great.

03:50Some of your schemes, Darni Darnan, this is what we highlighted.

03:52Some of the schemes, great.

03:53What we're talking about is these cash handouts, irrespective, you know, cash handouts to all women Russian card holders, or for that matter, free transport for all, free transport for women.

04:03These are freebies.

04:04I'm coming there.

04:05See, I'm coming there.

04:06See, the point is, even if you give 1,000 rupees to poor women folk, they're going to spend that money immediately.

04:12It's not that they're going to put it in their pocket or destroy that money.

04:14So, which means there's a positive circulation in the economy.

04:17So, the multiplier effect for such spending is about 3x.

04:20If you give 1,000 rupees to a poor person, which means the actual net effect on the economy is 3x, because it's going to go buy.

04:26Let's say they're going to go and buy from a department store, which means the store's revenue will increase, and they will expand the store.

04:34It's basic economics.

04:35No, but what about the state's economy?

04:36It's very profitable.

04:37But I will have to tell you this.

04:39AADMK has made some ridiculous comments on the DMK.

04:42But I'd like to remind them, in 2019 itself, they stopped Talik Tankham's team.

04:46They stopped Madam Jayaralita's two-wheeler scheme.

04:50Plus, the laptops were stopped from 2019 itself.

04:53Even because they couldn't pay the pension of the government staff, the retirement age came from 58 to 59, 1560.

04:59Only after DMK came to power, the pensioners paid.

05:01It's a fact.

05:03Kovei Satyan, your response.

05:05No, no.

05:05Why did it happen?

05:06It's because growth reduced and revenue to GDP reduced after 2016, after Jayaralita's demise.

05:12And Tamil Nadu was a revenue surplus state in 2011.

05:15By 2016, the revenue deficit was 7,000.

05:17Okay, let me give Kovei Satyan a chance to respond to what you're saying.

05:20The revenue deficit was minus 60,000 crores.

05:21That means I'll come back to you.

05:22I'll come back to you.

05:23I'll come back to you.

05:23Let Kovei Satyan respond first to the few points you've made.

05:27No, I can't respond to fake data, fake narratives, and nonsense statements of DMK.

05:31Let me say, even developed nations, till now, couldn't deliver a scheme called free laptops

05:37for their students.

05:39But we delivered.

05:40Our amma and Adapadhyay delivered.

05:42It's not one or two in numbers.

05:43It's 52 laptops in numbers.

05:46When we took over the government from DMK way back in 2011, the first two years, there

05:51were no electricity for 15 to 18 hours in the state.

05:54The last one and a half years went on corona.

05:56So, with an average borrowing of 30,000, 37,000 crores per annum, we gave 52 lakh laptops.

06:05And with an average borrowing of lakh and 25,000 crores by this DMK government, it is still

06:10struggling to keep up this basic poll promise of rupees thousand for all women.

06:15After 28 months, after repeated pressure by our leader and through public rallies, finally,

06:21they yielded just before the onset of looks of elections in 2024.

06:25That too.

06:26No, but have you copied their promise then?

06:28They removed a crore and 25 lakh women from the list.

06:30They started with one crore women.

06:32Now, after 55 months, suddenly 30 lakh women found the eligibility to get this thousand rupees.

06:38So, for DMK, it is nothing but bribing the women voters for vote bank qualities.

06:43No, but then they say that you are doing the same thing by promising 2000 rupees.

06:48Let me tell you, man.

06:49First example is, I stated about the laptop.

06:51We gave 100 units of electricity free per household.

06:56This DMK stopped it.

06:58And there are schemes which AIA-DMK delivered, wherein while in the go, once we assume power

07:05in 2026, there are many possibilities for resuming and giving 20k.

07:09It's all about financial management.

07:10Unfortunately, DMK doesn't have the expertise or team to do a proper financial management

07:16and planning.

07:17All they are borrowing is to fill their pockets of individuals who are in the roles of ministers

07:21in MLS.

07:22You know, you accused the DMK of bribing women voters.

07:25You have now doubled that amount, saying we will give you 2000 rupees.

07:29No, they promised 1000 for all women.

07:32They promised 1000 for all women.

07:35But what they ended up is treating women as vote bank politics.

07:38And they started this exercise by removing 1 crore and 25 lakh women, citing that they are

07:44not eligible.

07:46So, what do you infer from this?

07:47After 55 months, women who were refused this 1000 rupees suddenly became eligible.

07:53Then how do you want to term this thing?

07:55Isn't it a blatant indication that this is intended to keep the women happy when the elections

08:02are around the corner?

08:02No, but you are not answering my question, Kovai Satya.

08:04And then 2000 rupees is exactly that.

08:07If you are doubling the amount and offering the same thing to women in the state, then

08:11that's also the AI DMK's attempt at wooing women voters.

08:14No, let me tell you.

08:15And this is not the first time AI DMK is releasing this.

08:18Even 2021 manifesto, we had 1500.

08:21Considering the inflation, considering the expenditures, which is doubled in this DMK rule,

08:27then we have increased it to 2k.

08:29It is not after seeing how DMK is rolling out this.

08:31This is a poll promise, an extension of poll promises from our earlier manifesto.

08:36Darni Darni, go ahead.

08:37My point is DMK treat this to bribe women is my allegation.

08:42The way they promised and what they delivered is different.

08:42Okay, let Darni Darni respond to your allegation then.

08:45Darni Darni.

08:47So, when they speak about financial management, Ashita, I think you have all the data.

08:51The RBA publishes data each year.

08:53These are basic numbers that is very easy to find out.

08:57I will be very happy if your channel can educate the viewers on what was the revenue deficit of Tamil Nadu in 2011,

09:03what was it in 2016, what was it in 2019, and what it was in 2021.

09:08In 2019, it was minus 44,000 crores.

09:11In 2011, it was revenue surplus by 500.

09:13This revenue deficit became minus 63,000 crores, which has been subsequently reduced by 30,000 crores,

09:18which means, and revenue to GDP also you can publish, which has also increased.

09:22The GDP increase has been 105% in five years, but ADMK is five years, only 52%,

09:28which means GDP has increased, doubled, and the revenue has increased by 30% than earlier,

09:35which means more expenditure, and the debt to GDP has reduced.

09:38So, now this clearly shows who is good in financial management.

09:42A party that is only good in financial management can only deliver promises.

09:45It is also a fact that Kowai, one of my friends avoided,

09:49is that how they stopped the schemes of Jailita, madam, from 2019-2020,

09:55and how the retirement age of government employees were increased every year,

10:01which is a fact.

10:02These facts cannot lie.

10:03Okay.

10:03Dr. Subhanci Raman, go ahead.

10:05Ultimately, looking at what's happening over this...

10:08Yeah, go ahead, Dr. Subhanci Raman.

10:09No, no, I'm really confused here.

10:11The state is doing fabulously well, it seems, on the economic front.

10:18Today, contractors from the Chennai, Greater Chennai Corporation,

10:23who have arrears of 770 crores.

10:26Yeah.

10:27Court has given order saying that the money must be paid.

10:29There is no money to pay.

10:31Transport Corporation workers had to go to court.

10:35After the court threatened to call the chief secretary,

10:39after that, the arrears were paid in August last year.

10:43So, I think there is a serious disconnect between what is being projected

10:47and what is the reality on the ground.

10:49Now, this is not me saying so.

10:51This is an article in the paper today, which says 770 crores.

10:55And many works are coming to a halt because contractors are saying...

10:59Danidaran, you want to respond to that?

11:02Each corporation is individually funded, most often.

11:06Salem Corporation, for example, is individually funded.

11:08So are the others.

11:09There are autonomous bodies.

11:10Until and unless there is a specific state government scheme

11:12or union state scheme directly funded.

11:16Right.

11:16So, there are some individual issues.

11:18That doesn't mean the state's finances are bad.

11:21That is something you have to make it very clear.

11:22No, but where does the money come from?

11:23Danidaran, it comes from state finances.

11:25No, money, individual corporations get money individually

11:29through property tax and through other means.

11:32Right.

11:32Only when it comes to individual state level projects

11:35or individual union state projects,

11:37then the money comes to a different exchange.

11:38Okay, I have to wrap this up.

11:40My apologies for getting a big news break that's coming in.

11:42But I'd like to thank all of you for joining us.

11:44Let's go.

Sumanthi Raman Warns Of Rising Debt Amid AIADMK-DMK Freebie War In Tamil Nadu

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