The interim budget presented by the DMK government is deceptive and devoid of substance. Tamil Nadu’s financial situation has been deteriorating and key electoral promises remain unfulfilled. The “Dravidian model” government has presented its final Budget, filled with rhetoric but lacking concrete measures.
The state’s own tax revenue, originally estimated at Rs 2.58 lakh crore in the 2025-26 Budget, has been revised down to Rs 2.32 lakh crore — a shortfall of around Rs 26,000 crore. Likewise, projected expenditure has fallen sharply from Rs 66,753 crore to Rs 51,442 crore in the revised estimates, without any convincing explanation offered to the people.
The fiscal deficit, projected at Rs 96,000 crore for 2024-25 has already crossed Rs 1.01 lakh crore. The revised estimate for 2025-26 stands at Rs 1.24 lakh crore, an increase of around Rs 16,000 crore. Though the 2026-27 interim budget pegs the deficit at Rs 1.22 lakh crore, it would rise further, increasing debt and tax burden on people.
Of the 525 promises made ahead of the 2021 Assembly elections, not even a quarter has been fulfilled. The restoration of the Old Pension Scheme for government employees remains pending. Noon meal workers, nurses, part-time teachers and farmers have been cheated by the present regime.
The constitution of an expert panel under economist Raghuram Rajan was presented as a step towards prudent financial management. Yet borrowings have only increased since then. Even the Agriculture Budget clubbed sectors such as dairy, fisheries and rural roads together rather than maintaining an exclusive focus on agriculture.