Chennai

Edappadi K Palaniswami, General Secretary of the All India Anna Dravida Munnetra Kazhagam, on Tuesday launched a sharp attack on the ruling Dravida Munnetra Kazhagam over the Interim Budget, alleging that the much-touted “Dravidian Model” has turned into a “deceptive model” that has troubled the people of Tamil Nadu.

Speaking to reporters, Palaniswami said the Interim Budget, like those presented in previous years, lacked substance and was merely a “polished speech” without concrete outcomes.

“The DMK government, which claims to follow the ‘Dravidian Model’ but has actually functioned as a deceptive model, has presented its final Budget in the Assembly. Like previous years, this year’s Interim Financial Statement is nothing more than wordplay, without any substantial content,” he alleged.

The Leader of the Opposition questioned the role of DMK Members of Parliament, pointing out that the State’s own tax revenue for 2025–26 was initially projected at ₹2.58 lakh crore but revised downwards to ₹2.32 lakh crore, resulting in a shortfall of around ₹26,000 crore. He further claimed that Tamil Nadu’s share in central tax revenue has declined by nearly ₹7,000 crore.

“In the 2025–26 Financial Statement, the State’s own tax revenue was expected to be ₹2.58 lakh crore. According to revised estimates, it has come down to ₹2.32 lakh crore. Similarly, the State’s share in central tax revenue has reportedly fallen by about ₹7,000 crore. What have the 39 MPs been doing?” Palaniswami asked.

He also criticised the State government over the rising fiscal deficit, stating that while it was projected at ₹1.08 lakh crore for 2025–26, the revised estimate shows it has increased to ₹1.24 lakh crore — a rise of about ₹16,000 crore.

“For 2025–26, the fiscal deficit was projected at ₹1.08 lakh crore, but it has now gone up to ₹1.24 lakh crore. In the 2026–27 Interim Budget, it is pegged at ₹1.22 lakh crore and is bound to rise further in revised estimates. If this trend continues, the burden of taxation and borrowing on the people will only increase, which is not conducive to the State’s development,” he said.

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Earlier in the day, Tamil Nadu Finance Minister Thangam Thennarasu had said the State was facing unprecedented fiscal challenges due to the actions of the Union Government. Presenting the Interim Budget in the Assembly, he alleged denial of sanctions for major infrastructure projects, withholding of funds under centrally sponsored schemes, curtailment of tax revenues without consultation and imposition of conditions mandating expenditure, which, he claimed, had artificially precipitated a fiscal crisis in Tamil Nadu.