TN Budget 2026: TVK govt blames previous DMK regime for fiscal stress, says reforms have generated Rs 15,000 crore

CHENNAI: The TVK-led Tamil Nadu government on Wednesday accused the previous DMK regime of allowing the State's revenue-earning departments to "bleed uncontrollably" and permitting public funds to be siphoned off through middlemen, while asserting that corrective measures taken since assuming office have helped mobilise nearly Rs 15,000 crore.

Presenting the 2026-27 Budget, Finance Minister N Marie Wilson said the previous administration had failed to safeguard public finances and had allowed leakages on both the revenue and expenditure fronts.

"The previous government allowed revenue-earning departments to bleed uncontrollably, while permitting a significant portion of public money spent on works to be extracted by unscrupulous middlemen. Since assuming office, this government has made continuous efforts to plug leakages on both the revenue and expenditure sides, enabling it to mobilise nearly Rs 15,000 crore," the Budget document stated.

The Budget stressed that expenditure on welfare measures such as scholarships, free education, subsidies for entrepreneurs, the Public Distribution System (PDS) and free housing for the poor should not be viewed as largesse, but as investments in human and social capital that drive consumption and economic growth.

"The government has already taken action towards mobilising nearly Rs 15,000 crore through various measures. While the State's fiscal position remains in the red, the process of repair has begun, but it will require at least two years to restore financial stability," the Budget document said.

Taking a swipe at the previous DMK regime, the 2026-27 Tamil Nadu Budget said the former government had focused on short-term political gains, while asserting that the present TVK-led government was committed to pursuing long-term growth through consistent policies and clean governance.