Tamil Nadu FM tables Interim Budget, alleges Centre attempts creating 'fiscal crisis' for state

Tamil Nadu Finance Minister Thangam Thenarasu on Tuesday presented the Interim Budget for 2026-27 in the state Assembly and for social security schemes, he made a total allocation of Rs 5,463 crore.

In his address, the minister also alleged that the union government appeared to leave no stone unturned to artificially precipitate a fiscal crisis in Tamil Nadu.

Making Budgetary allocations and explaining the flagship schemes of the government and its impact, the Minister said in a federal polity, there were several instances in the past where states had been unfairly treated by the union government.


He further said, "However, I firmly believe that the extent of challenges faced by this government is unprecedented. In every field, be it denial of sanction of major infrastructure projects for Tamil Nadu, withholding of release of funds for centrally sponsored schemes, curtailment of tax revenues without due consultation, or unfair imposition of conditions to mandate expenditure, the union government appears to leave no stone unturned to artificially precipitate a fiscal crisis in Tamil Nadu."

He listed the challenges being faced by the government in the current financial year.

The Interim Budget speech of the minister was nearly 2.30 hour-long and it is considered as among the lengthiest addresses.

The assembly election is due in April 2026 in Tamil Nadu, and it is expected that the polls will be held that month.