Tamil Nadu's Interim Budget: Balancing Act Amid Political Tensions

Tamil Nadu Finance Minister Thangam Thenarasu presented a Rs 2.55 lakh crore interim budget for 2026-27, focusing on key sectors like education, urban development, and health. Opposition criticized the budget as self-promotional. The fiscal deficit is estimated at 3% of GSDP. The state faces alleged central government-induced fiscal challenges.

Tamil Nadu's Finance Minister, Thangam Thenarasu, unveiled a Rs 2.55 lakh crore interim budget for the fiscal year 2026-27, directing significant funds to education, urban development, and health. The budget includes a notable Rs 4,000 crore allocation for free bus travel for women, a flagship DMK scheme.

The main opposition, AIADMK, dismissed the budget as 'wordplay', whereas Tamil Nadu BJP leader Narayanan Thirupathy called it 'deceptive self-promotion', focusing on criticism of the BJP-led central government without addressing local governance issues. The budget estimates the fiscal deficit at 3% of GSDP, amid alleged financial challenges posed by the central government.

The state government's concerns over reduced central aid, including withheld funds for education and water projects, were highlighted. The finance minister criticized the central administration for exacerbating fiscal stress, reportedly impacting Tamil Nadu's finances. With upcoming elections in April 2026, the interim budget's implications are under scrutiny.

(With inputs from agencies.)