Tamil Nadu Finance Minister alleges Centre undermining cooperative federalism

In a pointed critique of the Union Government's fiscal policies, Tamil Nadu Finance Minister Thangam Thennarasu described the current system as changing from 'cooperative federalism into a coercive federalism'.  Speaking at the India Today South Conclave 2025, the Minister alleged that progressive, developed states are being penalised for good governance and population control, leading to a fall in their share of central taxes. A specific charge was made that Rs 4,000 crore in funds under the Samagra Shiksha Abhiyan were withheld from Tamil Nadu due to the state's policy of not implementing Hindi as a third language. The minister highlighted a structural imbalance where states handle two-thirds of the nation's expenditure with access to only one-third of the revenue. The interview also covered the loss of fiscal autonomy after GST and inadequate disaster relief funds, concluding with a call for a fundamental structural revamp of fiscal relations between the Centre and states.