The Theil index's methodological limitations stem from its dependence on fully accurate data inputs for precision. Implementing the Theil index requires detailed and reliable information, making it vulnerable to inaccuracies and biases. Additionally, inter-temporal comparisons present challenges due to changing data dynamics over time. Incomplete or inconsistent datasets can impede the index's effectiveness and yield misleading results. The differential sensitivity of the index to extreme values further complicates its interpretation, potentially skewing outcomes in the presence of outliers. These limitations call for caution when utilizing the Theil index and emphasize the necessity of robust data validation processes in its application.