Ex-Finance Minister Thangam Thennarasu challenges TVK-led govt to lower borrowing, offers to resign

On June 17, 2026, former Tamil Nadu Finance Minister and senior DMK leader Thangam Thennarasu issued a public challenge to the current TVK-led state government regarding the state’s fiscal management. Speaking to reporters at the DMK headquarters in Chennai, he stated that if the government could reduce the average annual borrowing below the level recorded during the previous DMK regime (2021-2026), he would resign from all his positions, including his party posts and Assembly membership.

The statement came a day after the TVK government released a White Paper on the fiscal management of Tamil Nadu, which claimed that the state’s debt had doubled during the five-year DMK rule. The white paper also highlighted issues such as high revenue deficit and alleged inadequate capital expenditure.

Mr. Thennarasu predicted that if the TVK-led coalition completes its full term and faces the next Assembly election, the total debt of Tamil Nadu could reach ₹20 lakh crore. He challenged the Finance Department to achieve what he termed as “fiscal prudence” by bringing down annual borrowings.

Addressing the white paper’s criticism of welfare spending, Mr. Thennarasu defended the previous government’s schemes. He listed initiatives such as the Magalir Urimai Thogai Scheme, zero ticket bus travel for women, the Chief Minister’s Breakfast Scheme, the Pudhumai Penn Scheme, and the old pension scheme for government employees. He argued that these welfare measures were responsible for higher deficit funding but questioned whether the current government’s own election promises—like ₹2,500 per month for women, 200 units of free electricity, six free LPG cylinders, and financial aid for unemployed youth—could be classified as capital expenditure. “Did you not include these promises in your manifesto?” he asked.

He further claimed that the TVK government was seeking to discontinue certain infrastructure projects initiated by the DMK, such as an elevated highway and the Parandur airport project, both of which were classified under capital expenditure. “It is unfair to say the DMK government did not give importance to capital expenditure after the TVK government itself has chosen to abandon similar projects,” he said.

On the revenue deficit, the white paper had noted that it remained structural and high even before the COVID-19 pandemic. Mr. Thennarasu countered that the revenue deficit was ₹62,325 crore in 2020-21 under the previous AIADMK government, and when the DMK took office, it stood at ₹45,000 crore. He said the DMK had reduced the revenue deficit ratio from 3.48% to 1.47% by 2024-25. He pointed out that the white paper was silent on why the deficit had now increased to ₹78,000 crore, and suggested that the Union government’s policies had contributed to the rise.

Comparing Tamil Nadu with Gujarat, Mr. Thennarasu noted that Gujarat was not implementing similar welfare schemes, implying that Tamil Nadu’s higher interest payments were a consequence of its social spending priorities.

The TVK government has not yet officially responded to Mr. Thennarasu’s challenge. The White Paper, released on June 16, 2026, is part of a broader effort by the new administration to assess the financial legacy left by the previous DMK government. The debate highlights the ongoing political tussle over fiscal policy in the state, with the opposition DMK defending its record and questioning the implementation of the current government’s promises.

Thangam Thennarasu served as Finance Minister in the DMK government from 2021 to 2026. The state’s finances have been a contentious issue, with successive governments blaming each other for mounting debt. The TVK-led coalition, which came to power in 2026, has pledged transparency and fiscal discipline. Political analysts note that the challenge by the former minister is a strategic move to corner the government on its election promises, which require substantial spending.