TN Interim Budget avoids populism, flags Centre fiscal strain
TN Interim Budget avoids populism, flags Centre fiscal strain
Tamil Nadu's Interim Budget for 2026-27 emphasizes discipline, highlights Centre funding gaps and disaster-management costs, while praising DMK flagship schemes.
Tamil Nadu Finance Minister Thangam Thennarasu presented the Interim Budget for 2026-27 in the Assembly, steering clear of last-minute populist announcements as the poll season looms. In his 142-minute speech, he highlighted the DMK government's achievements over the past five years and outlined the fiscal challenges that the state faces. He stressed that a sober budget could better prepare Tamil Nadu for upcoming demands rather than making promises that may not be sustainable.
Thennarasu framed the budget as a reflection of fiscal discipline, noting the ongoing friction with the Centre over funding, infrastructure projects, and policy conditions. He alleged that the Centre had denied major infrastructure initiatives, withheld funds, and curtailed tax revenues without prior consultation, while imposing expenditure conditions that complicate state budgeting.
On disaster management, he reminded lawmakers that the state had weathered floods and cyclones by mobilizing resources, and pointed out that while the Centre sanctioned only ₹1,151 crore of the ₹50,922 crore relief request, the Centre had allocated ₹6,013 crore under the State Disaster Response Fund in the last five years. The state, he added, had allocated ₹15,173 crore in the same period, incurring an extra ₹9,160 crore for disaster response and recovery.
Thennarasu also listed flagship schemes of the DMK government, including Kalaignar Magalir Urimai Thittam, the Chief Minister’s Breakfast Scheme for schoolchildren, Pudhumai Penn, Tamil Pudhalvan, Naan Mudhalvan, Magalir Vidiyal Payanam, and Makkalai Thedi Maruthuvam, portraying them as tangible achievements rather than mere promises.
Budgetary numbers painted a picture of a state striving for balance: outstanding debt estimated at ₹10.71 lakh crore, up from ₹9.52 lakh crore in the Revised Estimates for 2025-26. Total revenue receipts were projected at ₹3.44 lakh crore, an 11.26% rise over the revised figure, while revenue expenditure was set to ₹3.93 lakh crore, 3.79% higher than the previous revised estimate. Thennarasu argued that the fiscal framework must be guided by prudence, even as the state continues to invest in critical social schemes and disaster preparedness.
