Thangam Thennarasu avoids populist announcements in Interim Budget, flags fiscal strain

Tamil Nadu Finance Minister Thangam Thennarasu on Tuesday presented the Interim Budget for 2026-27, steering clear of any last-minute populist announcement in the poll-bound State, while highlighting the achievements of the DMK government in the last five years.

In his 142-minute speech, Mr. Thennarasu also outlined the challenges faced by the State from the Centre, including the denial of major infrastructure projects, the withholding of funds, curtailment of tax revenues without consultation, and the unfair imposition of conditions mandating expenditure.

He said that in the last five years, the DMK government had deftly managed several floods and cyclones. It had sought ₹50,922 crore in relief assistance from the Centre, which, however, sanctioned a meagre ₹1,151 crore. The Centre had allocated only ₹6,013 crore to Tamil Nadu under the State Disaster Response Fund in the last five years. However, the State had allocated ₹15,173 crore during this period, incurring an additional expenditure of ₹9,160 crore for disaster management.

He also listed the flagship schemes implemented by the M.K. Stalin government. Among the schemes were Kalaignar Magalir Urimai  Thittam, the Chief Minister’s Breakfast Scheme for school students, Pudhumai Penn, Tamil Pudhalvan, Naan Mudhalvan, Magalir Vidiyal Payanam, and Makkalai Thedi Maruthuvam.

According to the Interim Budget estimates, the State’s outstanding debt is put at ₹10.71 lakh crore, compared with ₹9.52 lakh crore in the Revised Estimates for 2025-26. Total revenue receipts are expected to stand at ₹3.44 lakh crore, an increase of 11.26% over the Revised Estimates for 2025-26, while total revenue expenditure is projected to rise to ₹3.93 lakh crore, 3.79% higher than the Revised Estimates for 2025-26.