Tamil Nadu Finance Minister Thangam Thennarasu has alleged that the Union government owes the state a staggering ₹2.63 lakh crore, significantly affecting its financial stability. Speaking in the Assembly during the debate on the 2025-26 state budget, he criticised the Centre for not releasing these funds, which, he claimed, account for nearly 32% of Tamil Nadu’s outstanding debt.“The delay in fund disbursal has put immense pressure on our financial planning. If these pending dues were cleared, Tamil Nadu would not have to rely on fresh borrowings and could fund essential development projects independently,” Thennarasu stated.
Leader of Opposition and AIADMK chief Edappadi K. Palaniswami countered the minister’s remarks, arguing that the financial strain faced by the state was a result of the pandemic. He justified the loans taken by the previous AIADMK-led government, pointing out that revenue sources like liquor sales and property registrations had dwindled due to lockdown restrictions.
However, Thennarasu refuted this claim, asserting that the DMK government’s fiscal challenges stemmed from the Centre’s refusal to release Tamil Nadu’s rightful share of funds. He further contended that the AIADMK government had received better financial cooperation from the Union government, unlike the current administration.
BJP MLA Vanathi Srinivasan suggested that the Tamil Nadu government explore alternative strategies instead of relying on additional borrowings. She proposed increasing the registration fee concession for properties registered under women’s names to 5%, which could encourage more women to invest in property.
In response, Thennarasu argued that such initiatives could only be implemented if the Centre cleared the pending dues. He also objected to Vanathi’s suggestion that Tamil Nadu should avoid criticising the Union government and instead collaborate with it for the state’s development.
The debate underscored the ongoing financial tug-of-war between the Tamil Nadu government and the Centre, highlighting the challenges in securing funds crucial for the state’s progress.