Why TVK’s White Paper Could Be Red Flag For CM Vijay, What Free Electricity Scheme Did BJP Propose In Tamil Nadu?

May 11, 2026

Chennai : After being sworn in as the Chief Minister of Tamil Nadu, Tamilaga Vettri Kazagham (TVK) Chief C Joseph Vijay on Sunday said that he would release a White Paper on Tamil Nadu’s fiscal health. From the dais, Vijay attacked the previous DMK government and accused it of leaving Tamil Nadu with a debt of Rs 10 lakh crore. He signed an executive order on the very stage, granting 200 units of free electricity every two months to domestic consumers.

The free electricity scheme signed on by Vijay. The poll promise of the TVK will cost the government Rs 1,730 crore per year, according to an order by the Tamil Nadu Energy Department. Vijay has made several other promises that would cost the state’s exchequer nearly Rs 1 lakh crore per year. Several economists believe that the TVK White Paper should be the biggest red flag for Vijay, who has to erect guardrails to prevent a state with good growth going into an economic tailspin.

The poll promises are big. Vijay promised direct cash transfers like Rs 2,500 a month for women heads of households, Rs 4,000 for unemployed graduates, and Rs 2,500 for diploma holders. Among these, Vijay’s TVK also assured six free LPG cylinders per household every year, Rs 15,000 annually to curb school dropouts, gold and saree as marriage aid, Rs 5 lakh as new start-up loans, and Rs 25 lakh for business launch loans.

The 2021 White Paper detailed a “dire” fiscal situation, projecting an outstanding debt of Rs 5.7 lakh crore by the end of Financial Year 2021-22. It highlighted a severe revenue deficit, blaming the previous 10-year rule of the AIADMK for structural flaws. Now, in 2026, after the end of the five-year rule of the DMK, Vijay has alleged that Tamil Nadu’s debt has reached up to Rs 10 lakh crore.

As per Tamil Nadu’s previous budget, the state’s total revenue receipts stand at Rs 3.31 lakh crore. Revenue receipt is the money earned by the government. The government pays salaries and pensions, runs schools and hospitals, and builds infrastructure assets (which is capital expenditure) from that money. If Vijay decides to fund the schemes entirely through higher spending without additional revenue mobilisation, the fiscal deficit could widen from the budgeted 3% of GSDP in 2025-26 to nearly 3.5-4%, according to an analysis by The New Indian Express.

Tamil Nadu is the state that is known for its welfare-driven politics. The DMK and the AIADMK, which governed the state for several decades, normalised the freebie culture. What started as targeted welfare measures gradually turned into a competitive cycle of populist promises. Vijay’s TVK has not done anything different from this model, it has just taken it a step further.