Tamil Nadu Finance Minister Thangam Thennarasu on Sunday accused the Central government of withholding adequate funds from the state despite its disciplined financial management. Addressing the media, Thennarasu refuted claims made by AIADMK General Secretary Edappadi K Palaniswami, who alleged that the state’s finances were in disarray under the DMK government.Thennarasu clarified that Tamil Nadu’s borrowings are well within the limits prescribed by the Finance Commission. “The 15th Finance Commission in 2021-22 set a borrowing limit of 28%, but Tamil Nadu’s borrowings stood at 27.01%. Similarly, in 2022-23, the limit was 29.3%, but our borrowings were only 26.87%. For the year 2024-25, the prescribed limit is 28.9%, but we have maintained it at 26.47%,” he said, emphasizing the state’s adherence to financial discipline.
The minister highlighted that Tamil Nadu’s financial stability is evident in its ability to generate additional revenues. “Even Palaniswami acknowledged that the government received Rs 1.10 lakh crore through commercial taxes. This reflects our efficient use of technological tools like data analytics to enhance financial management,” he said.
Thennarasu criticized the Central government for neglecting Tamil Nadu in the allocation of funds, particularly in response to natural calamities. He pointed out that the state has faced multiple cyclones over the past few years, affecting the livelihoods of many. “The Centre released only Rs 726 crore, which is Tamil Nadu’s share from the State Disaster Fund, while the state government had to step in with its own resources,” he stated.
He further accused the Centre of failing to release funds for critical schemes, including Rs 2,000 crore under the Samagra Shiksha Abhiyan. “Several schemes are awaiting the Centre’s contribution, putting additional pressure on the state’s finances,” he added.
Responding to Palaniswami’s criticism of the DMK government’s cyclone response and alleged failure to fulfill poll promises, Thennarasu dismissed the accusations as baseless. He asserted that the AIADMK chief should refrain from making unsubstantiated claims in public forums.
Thennarasu also accused the BJP-led Central government of favoring states ruled by the party or its allies. “Uttar Pradesh received Rs 31,039 crore, and Bihar got Rs 17,403 crore, while southern states like Tamil Nadu have been allocated paltry amounts,” he said, underscoring the disparity in fund distribution.
The minister concluded by reaffirming the DMK government’s commitment to managing the state’s finances prudently while ensuring the welfare of its people despite the challenges posed by inadequate support from the Centre.