TN Finance Minister Alleges Centre's Actions Caused Severe Fiscal Stress

• Tamil Nadu Finance Minister Thangam Thenarasu presented the Interim Budget for 2026-27, citing severe fiscal stress due to Union government actions.
• GST rate rationalisation and termination of GST compensation regime led to an estimated revenue shortfall of Rs 9,600 crore for TN.
• Union government deducted Rs 1,709 crore for IGST Settlement without intimation and reduced TN's share in Central taxes by Rs 1,202 crore.
• New conditions on borrowing ceiling and Loss Funding for TNPDCL imposed unbudgeted expenditures of Rs 3,087 crore and Rs 15,877 crore respectively.
• Centre withheld Rs 3,548 crore under Samagra Shiksha, Rs 3,112 crore for Jal Jeevan Mission, and Rs 2,246 crore in Finance Commission Grants.