The previous DMK regime presented the interim budget for 2026-2027 and the TVK government has presented the final budget.
TVK government had made it clear in the white paper that it had limited fiscal space for new schemes and programmes.
The budget highlighted it and found ways to still mobilise Rs 15,000 in annual revenues.
The budget said that the repair has been started to fix the State’s finances. Nevertheless, it pointed out that it would need at least two years to bring things on track.
That is a significant statement, given that the TVK government stormed to power with huge poll promises, like any other political party. It has to find the resources, to fulfil its poll promises.
The budget acknowledged the need for resources and fiscal space to sustain welfare schemes. It has also spoken about a framework to systematically eliminate revenue leakages, optimize expenditure, and enhance service delivery.
The government has also talked about Right to Services Act to ensure that services reach every citizen, as a legal right, in a timely manner.
The TVK government has made all the right noises about ensuring corruption-free, transparent administration and plugging revenue leakages.
One has to see how it implements these measures to put the state back on track in terms of fiscal prudence. That needs political will. It appears TVK had a right beginning. It has a challenging task on its hands, however.