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

Tamil Nadu Finance Minister Thangam Thennarasu on Tuesday presented the Interim Budget 2026-27, highlighting the DMK government’s achievements in the last five years while staying away from any last-minute populist announcements in the poll-bound State.

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

He said that in the last five years, the DMK government has skillfully managed numerous floods and cyclones. It had sought relief of ₹50,922 crore from the Centre, but it approved a meager ₹1,151 crore. The Center had allocated only ₹6,013 crore to Tamil Nadu under the State Disaster Response Fund in the last five years. However, the State allocated ₹ 15,173 crore during this period and made an additional expenditure of ₹ 9,160 crore for disaster management.

He also listed the flagship plans implemented by the government of MK Stalin. Among the schemes were: Kalaignar Magalir Urimai ThittamPrime Minister’s Breakfast Program for school students, Pudhumai Penn, Tamil Pudhalvan, Naan Mudhalvan, Magalir Vidiyal PayanamAnd Makkalai Thedi Maruthuvam.

As per the Interim Budget estimates, the State’s outstanding debt is pegged at ₹10.71 lakh crore, compared to ₹9.52 lakh crore in the 2025-26 Revised Estimates. While total revenue receipts are expected to remain at ₹3.44 lakh crore, an increase of 11.26% over the Revised Estimates for 2025-26, total revenue expenditure is expected to rise to ₹3.93 lakh crore, which is 3.79% higher than the Revised Estimates for 2025-26.