Palaniswami slams Tamil Nadu Budget for missing fiscal consolidation, new schemes

AIADMK general secretary Edappadi K. Palaniswami on Tuesday criticised the Tamil Nadu government's Revised Budget 2026-27, saying it lacked concrete plans for fiscal consolidation and introduced no new schemes. Speaking during the general discussion on the Revised Budget and Revised Agriculture Budget in the Assembly, he said the recent White Paper on State Finances highlighted serious concerns but the Budget did not address them adequately.

Mr. Palaniswami pointed to the White Paper, released by the new government, which recorded an outstanding debt of ₹13.18 lakh crore, a historic high revenue deficit, and lower State's Own Tax Revenue compared to some other States. He argued that the Budget should have included specific measures to augment financial resources and rectify these issues. He also noted that Finance Minister N. Marie Wilson had claimed the new government brought ₹15,000 crore to the exchequer, but this was not reflected in the revenue receipts.

The AIADMK leader raised concerns about the Tamil Nadu Assured Pension Scheme (TAPS), stating that the previous government had allocated ₹14,000 crore for it in the Interim Budget Estimates. He questioned why this allocation was not listed under revenue expenditure and whether the new government intended to implement the scheme. He also alleged that within three months of assuming office, the new government had borrowed ₹20,000 crore, of which around ₹17,000 crore was for revenue expenditure.

On education, Mr. Palaniswami noted that only 10,000 schools had been brought under the 'Super Clean, Super Campus' scheme, which aims to ensure daily cleaning, maintenance of drinking water facilities and toilets, and round-the-clock security. He urged the government to extend the scheme to all 40,000 government schools and increase its allocation to at least ₹450 crore.

Highlighting the employment situation, he said there were 13.3 lakh vacancies in various government departments and 1.5 lakh vacancies in 77 public sector undertakings. With 5% to 7% of government employees retiring every year, he called for a phased approach to fill these vacancies.

Mr. Palaniswami also demanded a full waiver of crop loans for marginal, small, and large farmers, citing the drought situation. He recalled that his party had implemented a 100% crop loan waiver when in power. Additionally, he urged the government to take steps to eradicate 'Seemai Karuvelam' (Prosopis juliflora) and implement the 'Nadandhai Vaazhi Cauvery' scheme.