Ex-FM Thangam Thennarasu challenges govt to keep debt under control

CHENNAI: Former Finance Minister and DMK MLA Thangam Thennarasu on Wednesday alleged that the White Paper released by the TVK government was an attempt to justify its inability to fulfil the promises made during the Assembly election campaign.

Addressing reporters at the DMK headquarters, Anna Arivalayam, Thennarasu questioned why the government had focused only on the fiscal position inherited from the DMK regime between 2021 and 2026 while ignoring the financial condition inherited from the previous AIADMK government.

"The White Paper itself admits that the fiscal space available to the government is limited and that introducing new schemes would be difficult. By issuing this report, the government has effectively indicated that it may not be in a position to fulfil its election promises," he alleged.
Describing the White Paper as an 'escape route', Thennarasu said the government had chosen to release it ahead of the Governor's Address instead of presenting it before the Budget. According to him, the move suggested that no major welfare announcements were likely to be made during this Assembly session.

Defending the DMK government's handling of the State's finances, the former Finance Minister argued that the increase in public debt was not unique to the previous regime. "Since 2000, Tamil Nadu's debt has approximately doubled during every five-year government term. If the present government completes its tenure, the State's debt could reach Rs 20 lakh crore," he claimed.

He challenged the ruling TVK government to prove that it could keep borrowings under control while simultaneously implementing all its poll promises and continuing the welfare schemes introduced by the DMK.

Thennarasu also rejected criticism regarding revenue and capital expenditure during the DMK regime. He questioned whether promises made by TVK, including free LPG cylinders and monthly financial assistance, could be classified as capital expenditure.

The former Minister further accused the government of slowing down or halting infrastructure projects initiated during the DMK regime, including elevated corridor projects and the proposed Parandur airport project.
He attributed the State's revenue deficit partly to what he described as inadequate transfers from the Union government. According to him, Tamil Nadu was denied RS 41,411 crore under various schemes and subsidies during the previous financial year, contributing to a revenue deficit of around Rs 78,000 crore.

"The White Paper does not mention these factors," Thennarasu alleged.