Leader of the Opposition Edappadi Palaniswami in the Assembly on Thursday 
Tamil Nadu

DMK stealing credits, driving Tamil Nadu on debt trap: Edappadi

Thangam says borrowing within limits despite Centre not following Finance Commission recommendation to share Rs 3.17 lakh crore

DTNEXT Bureau

CHENNAI: The Tamil Nadu Assembly witnessed an intense face-off on Thursday as the ruling DMK and the AIADMK traded charges over rising debt, election-linked welfare disbursals, law and order, vacancies and the demand for State autonomy during a two-and-a-half-hour debate on the interim Budget 2026.

The Leader of the Opposition, Edappadi K Palaniswami, spiced up the debate, accusing the ruling government of pasting its own stickers on successful schemes of the previous government. He accused the DMK of claiming credit for AIADMK-era initiatives, including the 7.5% internal reservation for government school students in medical admissions and the 3% quota for sportspersons, and challenged the ruling party to seek a mandate on its own record.

Palaniswami questioned the State’s fiscal trajectory and the role of the committee headed by former RBI Governor Raghuram Rajan. He flagged the rise in public debt from Rs 4.85 lakh crore in 2021 to over Rs 10 lakh crore now, alleging that nearly Rs 5 lakh crore had been borrowed in five years. “Revenue deficit has increased under this regime. Was the Raghuram Rajan committee consulted before every major policy decision?” he asked, demanding a white paper on its recommendations, investments attracted and jobs generated.

Palaniswami also alleged that the recent Rs 5,000 disbursal under the Kalaignar Magalir Urimai Thogai scheme and the Rs 2,000 summer cash assistance were timed with electoral considerations.

Finance Minister Thangam Thennarasu rejected the charges, asserting that borrowings remained within Finance Commission limits. He said the fiscal deficit had reduced from 4.6% in 2020–21 to 3.48%, and the revenue deficit from 3.49% to 1.94%. Had Tamil Nadu received its full Rs 3.17 lakh crore share as recommended by earlier Finance Commissions, the debt burden would have been lower, he contended, adding that the Rajan panel had been consulted five times. Ministers EV Velu and P Geetha Jeevan said the summer assistance was a policy decision and would be provided annually.

On vacancies, Palaniswami accused the government of failing to fulfil its promise of holding 100-day Assembly sittings annually and of leaving posts unfilled. Minister Kayalvizhi Selvaraj said 1,55,137 appointments had been made over the past five years. On the Old Pension Scheme, Thennarasu defended the Tamil Nadu Assured Pension Scheme as fiscally sustainable, adding that the DMK regime overcame debt left over by the previous EPS government.

The debate then veered to law and order, with Palaniswami alleging a rise in drug abuse and declining safety. Ministers S Regupathy and Geetha Jeevan maintained that enforcement had been strengthened and Tamil Nadu ranked high in women’s safety.

Clashing over State autonomy, Palaniswami accused the DMK of political posturing. Minister SS Sivasankar countered that renewed assertion of federal rights was necessary amid moves such as “One Nation, One Election”.

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