Thangam Thennarasu. File
| Photo Credit: G. Moorthy
Former Finance Minister and senior DMK leader Thangam Thennarasu on Wednesday (June 17, 2026) predicted that if the Tamilaga Vetri Kazhagam (TVK)-led government completed its five-year term and faced the next Assembly election, the State’s debt would touch ₹20 lakh crore.
Reacting to the White Paper on The Fiscal Management of Tamil Nadu released by the government on Tuesday (June 16), which said the State’s debt had doubled during the previous DMK regime, he challenged the TVK-led government and the Finance Department to bring down the average annual borrowing below the level recorded during the previous five-year tenure.
Click here to read the full document of the White Paper released on June 16, 2026
Mr. Thennarasu said if the government implemented what the white paper had described as the “good schemes of the DMK government”; fulfilled its election promises; and achieved fiscal prudence through lower annual borrowing, he would give up all positions (party and Assembly membership).
“It is my challenge to the government,” he said while speaking to reporters at Anna Arivalayam, the DMK headquarters in Chennai.
Welfare schemes
On the issue of interest payments made by the Tamil Nadu government vis-à-vis the Gujarat government, Mr. Thennarasu said Gujarat was not implementing welfare schemes such as the Magalir Urimai Thogai Scheme, zero ticket bus travel for women, the Chief Minister’s Breakfast Scheme, the Pudhumai Penn Scheme, and pension benefits under the old pension scheme for government employees.
“Our deficit funding is high because of welfare schemes. There is an allegation that our deficit funding is high and capital expenditure is low. Can expenditure on your promises, such as ₹2,500 financial assistance for women, 200 units of free electricity, six free LPG cylinders and financial assistance for the unemployed, be classified as capital expenditure? Did you not include these promises in your manifesto? Will the Singappen Scheme be treated as capital expenditure? Will funds for the expansion of the Breakfast Scheme come under capital expenditure?” he asked.
Mr. Thennarasu alleged the government was seeking to discontinue projects such as the elevated highway and the Parandur airport project, both of which had been categorised under capital expenditure.
“You have also issued directions to stop projects being implemented by the Public Works Department. It is unfair to say the DMK government did not give importance to capital expenditure after the TVK government itself has chosen to abandon similar projects,” he said.
‘Deficit higher during AIADMK regime’
Responding to another allegation in the white paper that the revenue deficit was structural and had remained high even before the COVID-19 pandemic, Mr. Thennarasu said the deficit had been much higher during the previous AIADMK regime.
“It was ₹62,325 crore in 2020-21. When the DMK government assumed office, it stood at ₹45,000 crore. The revenue deficit ratio was 3.48% and was reduced to 1.47% in 2024-25,” he said, adding the white paper was silent on why it had now increased to ₹78,000 crore.
Mr. Thennarasu further alleged the white paper sought to blame the DMK government for the revenue deficit, but was not ready to blame the Union government, which, according to him, had contributed to the increase.
Published – June 17, 2026 02:40 pm IST
