TN interim budget: Finance minister accuses Centre of fiscal squeeze, flags rising debt

In the interim budget presented by Tamil Nadu's Finance Minister Thangam Thenarasu, the state government highlighted its impressive economic growth of 11.19% for the fiscal year 2024-25, positioning Tamil Nadu as the top-performing state in India. However, the minister criticized the central government for imposing a fiscal squeeze that he argues is hampering the state's financial flexibility. He pointed to rising debt levels as a significant concern, stressing the need for a more supportive fiscal framework from the Centre to sustain the state's development trajectory. The budget proposals aim to address various sectors, including infrastructure and social welfare, but they also emphasize the importance of cooperative federalism to ensure that states receive adequate financial support for growth. The minister's address underscores the tension between state and central finances, reflecting broader issues in India's fiscal landscape as states navigate economic challenges while striving for growth and development.