EPS Tears Into DMK’s ‘Kaddhu-Kathal Budget’, Calls It Hollow, Flags ₹26,000 Cr Revenue Gap in Tamil Nadu

Chennai: With the 2026 Assembly elections on approaching, the DMK government on Monday presented what is predicted to be its final Budget before seeking a fresh approval from the people of Tamil Nadu. However, the 2026–27 Interim Budget swiftly drew strong criticism from the Opposition, with AIADMK General Secretary and Leader of the Opposition Edappadi K. Palaniswami (EPS) branding it a grand “Kaadhu Kutthal” ceremony, a spectacle, he alleged, staged to deceive the public one last time.  

For four and a half years, EPS said, the DMK government has presented Budgets filled with elaborate language and exaggerated allegations while the financial foundations of the State steadily weakened. Citing the common Tamil phrase “kaadhu kutthal,” which means dishonesty in colloquial terms, EPS claimed the government still presents economic failure as success.

“This is not a Budget. It is a deception document. The DMK government has perfected the art of presenting attractive figures while concealing painful realities,” he said. The figures given in the Budget itself expose the gravity of the scenario. 

₹26,000 Crore Revenue Shortfall Raises Questions

In the 2025–26 Budget Estimates, the State’s Own Tax Revenue was projected at ₹2.58 lakh crore. However, the Revised Estimates now mark that figure at ₹2.32 lakh crore, indicating a steep shortfall of nearly ₹26,000 crore. 

EPS criticized the Finance Minister's lack of a compelling explanation for the revenue reduction and how it might have happened. He was complaining that the state's portion of the federal government's tax collection was lacking by Rs. 7000 crores.

“Instead of blaming others, the government must answer how the State’s own revenue collapsed by ₹26,000 crore,” he said.

₹15,000 Crore Cut in Capital Expenditure

Meanwhile, capital spending, which is essential for infrastructure, development, and job creation, has drastically decreased. This is a reduction of around ₹15,000 crore from the initial projection of ₹66,753 crore to ₹51,442 crore.

EPS alleges that this cut is a direct hit to industry, job creation, and development, undermining the State's long-term economic prospects rather than just being a fiscal adjustment.

Fiscal Deficit Surges by ₹16,000 Crore

EPS asserted that the fiscal deficit figures are equally concerning. Originally projected to be ₹96,000 crore, the deficit for 2024–2025 has now increased to ₹1.01 lakh crore. The initial estimate of ₹1.08 lakh crore for 2025–2026 has now risen to ₹1.24 lakh crore, an almost ₹16,000 crore increase. The 2026–2027 deficit is estimated at ₹1.22 lakh crore in the interim budget, although EPS cautioned that this amount is likely to rise even more in updated projections.

“When deficits rise, taxes rise. When borrowings increase, the burden ultimately falls on the people. This is not development. This is reckless financial mismanagement,” he stated.

EPS also reminded the public that upon assuming office, Chief Minister M.K. Stalin had declared the formation of a financial advisory council under the leadership of Raghuram Rajan, pledging to restore fiscal stability. But now, after four and a half years, the state's debt has skyrocketed, borrowing has gone up, and the tax burden on individuals has climbed. “After forming an expert committee, the only result has been higher loans and higher debt. Where is the promised improvement?” "The government has no credible financial record to defend," EPS questioned.

Unfulfilled Promises and Sectoral Concerns

EPS highlighted what he called an expanded trend of failed promises in addition to fiscal statistics. In 2021, the DMK made 525 electoral obligations to the people of Tamil Nadu. According to EPS, not even one fourth of these have been accomplished. The pledge to reinstate the Old Pension Scheme for public servants was one of the most important. Instead, the Contributory Pension Scheme continues, leaving employees disappointed.

He added that promises made to farmers, nurses, part-time teachers, nutritional organizers, and other government employees had not been met, causing protests and general discontent throughout the state. “Every section of society is raising its voice today because promises have been betrayed. Tamil Nadu has become a land of protests under this regime,” EPS remarked.

There was also criticism of the so-called Agriculture Budget. According to EPS, the government is giving the appearance of increased allocation by combining departments like dairy, animal husbandry, fisheries, cooperatives, rural roads, and water resources under the general heading of agriculture, but in reality, it is not offering farmers a targeted, stand-alone plan. “This is not an Agriculture Budget that empowers farmers. It is another attempt to package multiple departments together and present it as a grand announcement,” he said.

Despite nearly five hours of speeches delivered by Ministers in the Assembly, EPS claimed the presentations lacked substantive solutions or a credible roadmap for revenue growth and fiscal discipline. Rather, he noted, the government has only repackaged previous plans, adorned them with fancy words, and framed them as new accomplishments.

EPS concluded by criticizing the budget as essentially empty despite its apparent grandeur. “This financial statement looks attractive on the outside, but inside it is empty. The so called Dravidian Model has become a model of debt, deficit and deception,” he said.

The AIADMK reiterated that the people of Tamil Nadu deserve transparent governance, responsible fiscal management and genuine development, not ceremonial spectacles intended to conceal failure.

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