❖ The Economists C. Rangarajan and K.R. Shanmugam of the Madras School of Economics carried out the study by covering different facets of the State economy.

❖ Tamil Nadu’s public debt has neither “adversely affected” the growth nor “supported” it.

❖ This finding was with reference to the period from 2005-06 to 2022-23 when the public debt-Gross State Domestic Product (GSDP) ratio had a negative effect on real economic growth, but it was “not significant”.

❖ However, they cautioned that in future, a “higher debt ratio may adversely affect growth”.

❖ They also observed that “reduction in the debt-GSDP ratio may induce growth”

❖ Analysing the pattern of the ratio over the years, in 2016-17 that the ratio had exceeded 20%.

❖ This is the sustainable level recommended by the Fiscal Responsibility and Budget Management (FRBM) Review Committee in 2017.