Interim Budget: Tamil Nadu Claims Union Government Undermining State Finances

Interim Budget: Tamil Nadu Claims Union Government Undermining State Finances.webp

Chennai, February 17 Presenting the Interim Budget for 2026-27 in the Assembly, Tamil Nadu Finance Minister Thangam Thenarasu said on Tuesday that the union government appears to be making every effort to artificially create a fiscal crisis in Tamil Nadu.

While outlining budgetary allocations and explaining the government's flagship schemes and their impact, the Minister stated that in a federal polity, there have been several instances in the past where states have been unfairly treated by the union government.

He further added: "However, I firmly believe that the challenges faced by this government are unprecedented. In every field, whether it involves denying approval for major infrastructure projects for Tamil Nadu, withholding funds for centrally sponsored schemes, curtailing tax revenues without proper consultation, or imposing unfair conditions to mandate spending, the union government appears to be making every effort to artificially create a fiscal crisis in Tamil Nadu."

He listed the challenges that the government is facing in the current financial year.

The Interim Budget speech by the Minister was nearly 2.30 hours long, and it is considered one of the longest addresses.

The assembly elections are due in April 2026 in Tamil Nadu, and it is expected that the elections will be held that month.
 
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2026-27 budget assembly elections budgetary allocations centrally sponsored schemes federal polity finance minister fiscal crisis infrastructure projects interim budget state finances tamil nadu tamil nadu assembly tamil nadu government
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