Chennai: Former finance minister Thangam Thennarasu on Wednesday said TVK govt’s first full budget exposed a widening gap between the state’s fiscal promises and actual performance. The budget also countered the narrative the govt had presented in its white paper earlier this year.Speaking to reporters at DMK headquarters, Thennarasu said the budget projected a net borrowing of Rs 1.22 lakh crore this fiscal, up from around Rs 1 lakh crore when DMK left office. The state’s revenue deficit has widened from Rs 48,699 crore to Rs 55,775 crore, reflecting an increase of about Rs 7,000 crore, contrary to the promise of restoring fiscal discipline.Thennarasu said economic indicators in the budget contradicted TVK govt’s claims that their “superior fiscal management” would arrest debt growth, improve revenue mobilisation, increase capital investment and restore the state’s finances. “The budget has become documentary evidence that disproves every criticism levelled by TVK govt’s white paper against the previous DMK govt,” he said.Thennarasu also questioned govt’s claim that it would prioritise long-term asset creation through higher capital spending. “While the white paper criticised DMK for allegedly neglecting capital expenditure, the budget has reduced capital outlay to Rs 56,985 crore from Rs 59,662 crore,” he said.He said the promise of strengthening the state’s tax revenue had failed. At the same time, revenue expenditure has risen from Rs 3.93 lakh crore to Rs 4.05 lakh crore, while the fiscal structure continues to tilt towards consumption rather than productive investment, he added.Calling the budget an admission of policy failure, Thennarasu said TVK govt had neither delivered the fiscal turnaround promised in the white paper nor backed its election commitments with credible financial allocations. Instead, the budget repackaged existing DMK-era schemes under new names without providing fresh funding, he said.He also questioned the priorities of the state govt, noting that the archaeology department had been allotted just Rs 1 crore. “Such a token provision is grossly inadequate for conservation, museum development, excavations and research,” said Thennarasu .
