The White Paper on public finances is being finalized

The Tamil Nadu Government Finance White Paper is being finalised. “The document is likely to be ready in a few days,” says a senior official.

When he assumed office last month, Chief Minister C. Joseph Vijay announced that his government would issue a white paper. He alleged that the previous DMK government had left behind an “empty coffers”. In fact, on Saturday, Finance Minister N. Marie Wilson said in Nagapattinam that it would take two weeks to finalize the document.

Now the government plans to present the White Paper in the Assembly, just like the AIADMK government did in August 2001. Then Finance Minister C. Ponnaiyan presented the White Paper as part of his 2001-02 Budget speech. However, 20 years later, before presenting the budget in the Assembly, the DMK government released a similar document in a press conference addressed by then Finance Minister Palanivel Thiaga Rajan.

Due to the strained financial situation of the government, several of TVK’s election promises will probably remain only on paper.

According to a conservative estimate, full implementation of about a dozen promises, including an increase in monthly assistance to women from ₹1,000 to ₹2,500, free bus travel for women across the state, six free refills of cooking gas cylinders for children, a single sovereign gold coin for state marriages for women at birth, a gold coin at the time of birth, would require an increase in monthly assistance to women from ₹1,000 to ₹2,500 3,000 in superannuation and an allowance of ₹ 15,000 per annum to parents or guardians of school children (up to class 12).

The government introduced only watered-down versions of promises of 200 units of free electricity every month for the domestic category and a complete waiver of crop loans taken by small and marginal farmers from cooperative societies, along with a 50% waiver for large farmers.

Although the free electricity for domestic consumers has not caused any adverse reaction, the decision to waive the crop loan has been criticized by various parties, including allies of the ruling TVK and farmers’ bodies.

The government is yet to specify how it will implement the increase in monthly assistance for women, as the annual burden will be around ₹ 39,000 crore, even if it decides to cover only the current strength of 1.3 million beneficiaries.

As farmers are not happy with the crop loan waiver, an agriculture expert, citing the promise of ₹15,000 per year to each farmer, suggests that the government link its annual support scheme to farmers with the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), under which each beneficiary is paid ₹1,000 per year. Currently, almost 22 thousand farmers are covered under PM-KISAN in the state. If the state raises ₹9,000 per year for each farmer, it will only have about ₹1,980 crore per year. Otherwise it will be ₹3,300 crore.

A few changes need to be made before the white paper is released. The state cabinet did not formally meet even once. A date has to be fixed for Governor Rajendra Vishwanath Arlekar to address the assembly.

In Tamil Nadu, the government is briefed on the general outlines of the governor’s address and the state budget, as there is no tradition of the cabinet approving the address or the budget. Last week, Mr. Arlekar, who is also the Governor of Kerala, delivered his speech in the Kerala Assembly. The state government has not decided on the governor’s address as it is waiting for the center to appoint a full-fledged governor.

Published – 31 May 2026 22:42 IST