Tamil Nadu's Fiscal Face-Off: Budget 2026-27 Sparks Controversy

Tamil Nadu's Finance Minister Thangam Thenarasu claims the union government's actions are artificially precipitating a fiscal crisis in the state. During his Interim Budget presentation for 2026-27, he highlighted issues such as denied infrastructure projects and withheld funds, arguing the state faces unprecedented challenges.

The Tamil Nadu Finance Minister, Thangam Thenarasu, has accused the union government of deliberately creating a fiscal crisis in the state. Presenting the Interim Budget for 2026-27, he criticized the union's unfair treatment of states, particularly in withholding infrastructure projects and tax revenues.

Thenarasu's 2.30-hour speech detailed the state's current financial challenges, arguing they are unprecedented due to the central government's interventions. He stressed that Tamil Nadu has faced obstacles such as denied sanction of projects and unfavorable expenditure conditions.

With the state assembly elections approaching in April 2026, these budgetary concerns are likely to stir political debates. Thenarasu's address, one of the lengthiest on record, aims to spotlight the state's struggles under federal pressures.