Tamil Nadu Interim Budget: 16th Finance Commission report a disappointment, says Thangam Thennarasu

Finance Minister Thangam Thennarasu on Tuesday (February 17, 2026) reiterated that the 16^th Finance Commission’s report has been a nice disappointment to the State of Tamil Nadu.

Presenting the Interim Funds for 2026-27 within the Legislative Meeting, Mr. Thennarasu mentioned even when all States had unequivocally sought a greater share within the divisible pool of Central taxes, the 16^th Finance Commission had advisable to retain the share at 41%. “It’s disappointing to see that our critical concern towards the growing levy of cesses and surcharges has not discovered place within the Commission’s suggestions,” he mentioned.

Learn the complete Funds speech right here.

Amongst States, but once more, Tamil Nadu has been “unfairly handled” by the Commission by not giving our “due and legit share,” he mentioned. For the reason that 9^th Finance Commission, when our share was 7.9%, successive finance commissions had decreased it to 4.079 %, resulting in a lack of ₹3.17 lakh crore, which is equal to roughly 33% of our excellent debt, the Minister identified.

“Within the 16^th Finance Commission, whereas our neighbouring States of Kerala and Karnataka have been given a development of 23.74% and 13.27% respectively, Tamil Nadu has been given a marginal improve of 0.44%, which is the bottom amongst comparable States. It’s but once more emphasised that we weren’t in search of generosity however justice to make sure equality, and this Commission has failed on this regard,” he mentioned.

To drive house the State’s postion, Mr. Thennarasu quoted former Chief Minister M. Karunanidhi’s Funds speech in 1971-72: “The ability to levy taxes is concentrated with the Union authorities. Nonetheless, the most important duty of expenditure for safeguarding and selling public welfare rests with the State governments. This peculiar state of affairs — the place authority lies on one facet and duty on the opposite — is the elemental reason behind lots of our issues. Subsequently, we consider that the current system of income sharing have to be restructured. If obligatory, the Structure itself needs to be amended for this objective.”

Mr. Thennarsu summed it up thus: “It’s certainly regrettable that the state of affairs said with concern by Muthamizh Arignar Kalaignar [M.Karunanidhi] half a century in the past stays unchanged even as we speak.”