A recent claim highlights Tamil Nadu's debt as "alarming," noting it now exceeds Uttar Pradesh in absolute numbers. However, this comparison needs detail. Tamil Nadu’s economic size (GSDP) is ₹35.7 lakh crore in 2025-26, larger per capita than Uttar Pradesh's ₹30.8 lakh crore, despite UP having nearly three times the population. Tamil Nadu’s debt is 26.1% of its GSDP, slightly down from previous years, while Uttar Pradesh’s debt stands at 29.4% of GSDP. Tamil Nadu spends about 21% of its revenue on interest payments, a high share but not signaling a debt crisis. Its fiscal deficit is within safe limits at 3%. Notably, Tamil Nadu’s economy grew over 7% annually between 2020-21 and 2023-24, expanding services and manufacturing even as debt rose. The state’s per capita GSDP of ₹3.53 lakh is more than three times that of Uttar Pradesh's ₹1.07 lakh. Tamil Nadu also invests heavily, increasing capital spending by 22% in 2025-26, focusing on transport, urban development, energy, semiconductor and tech growth. The state also raises 75% of its revenues internally, unlike Uttar Pradesh which relies on central funds for over half its revenue. Experts stress debt isn’t just a number; what matters is the use of that borrowing. Tamil Nadu’s debt finances growth and development, not just expenses. The debate should look beyond simple comparisons to the broader economic picture and future prospects.