Chennai (Tamil Nadu) [India], February 17 : AIADMK General Secretary Edappadi K Palaniswami on Tuesday slammed the incumbent DMK government over the Interim Budget, alleging that the so-called "Dravidian Model" has turned into a "deceptive model" and has tormented the people of Tamil Nadu.
Speaking to reporters, Palaniswami said that, like previous years, the budget lacked substance and was merely a polished speech.
"The DMK government, which has tormented the people of Tamil Nadu for the past five years with what it called the "Dravidian Model" but which has functioned as a deceptive model, has presented its final Budget in the Assembly. Like previous years, this year's Interim Financial Statement was also nothing more than a polished speech filled with wordplay, without any substantial content," he said.
Questioning the role of DMK MPs, the AIADMK leader pointed out that while the State's own tax revenue for 2025-26 was projected at Rs 2.58 lakh crore, the revised estimates show it has been reduced to Rs 2.32 lakh crore, resulting in a shortfall of around Rs 26,000 crore. He also claimed that Tamil Nadu's share in Central tax revenue has declined by nearly Rs 7,000 crore.
"In the 2025-26 Financial Statement, the State's own tax revenue was expected to be Rs 2.58 lakh crore. However, according to the revised estimates, it has been reduced to Rs 2.32 lakh crore, a shortfall of around Rs 26,000 crore. Similarly, the State's share in Central tax revenue has reportedly decreased by around Rs 7,000 crore. (Will he explain what the 39 Members of Parliament have been doing?)," Palaniswami said.
The Leader of the Opposition further criticised the State government over the rising fiscal deficit, stating that for 2025-26 it was projected at Rs 1.08 lakh crore but has now increased to Rs 1.24 lakh crore, a rise of about Rs 16,000 crore.
"For 2025-26, the fiscal deficit was projected at Rs 1.08 lakh crore, but the revised estimate shows it has increased to Rs 1.24 lakh crore a rise of about Rs 16,000 crore. In the 2026-27 Interim Budget, the fiscal deficit is stated to be Rs 1.22 lakh crore, and in the revised estimates, it is certain to increase further. If the fiscal deficit continues to rise in this manner, the burden of taxation and borrowing on the people will increase. This is not conducive to the State's development," said Palaniswami.
Earlier, Tamil Nadu Finance Minister Thangam Thennarasu said on Tuesday that the State is facing unprecedented fiscal challenges due to actions by the Union Government, alleging denial of funds, a reduction in tax revenues, and the imposition of conditions that have strained Tamil Nadu's finances.
Speaking in the assembly while presenting the interim budget, Thennarasu said that in a federal polity, States have often been treated unfairly, but the scale of challenges Tamil Nadu faces in the current financial year is unprecedented.
He said the Union Government has denied sanctions for major infrastructure projects, withheld funds under Centrally Sponsored Schemes, curtailed tax revenues without consultation and imposed conditions mandating expenditure, thereby creating artificial fiscal stress for the State.
"In a federal polity, there have been several instances in the past where States have been unfairly treated by the Union Government. 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 the State of 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," Thennarasu said.
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