Chennai, Feb. 17 -- Tamil Nadu Finance Minister Thangam Thennarasu on Tuesday said the State is facing unprecedented fiscal challenges due to the actions of the Union Government, alleging denial of funds, a reduction in tax revenues, and the imposition of conditions that have strained Tamil Nadu's finances.

Speaking in the assembly while presenting the interim budget, Thennarasu said that in a federal polity, States have often been treated unfairly, but the scale of challenges Tamil Nadu faces in the current financial year is unprecedented.

He said the Union Government has denied sanctions for major infrastructure projects, withheld funds under Centrally Sponsored Schemes, curtailed tax revenues without consultation and imposed conditio...