Tamil Nadu Budget 2026–27: Key Highlights

The Tamil Nadu Interim Budget for 2026–27, presented by Finance Minister Thangam Thennarasu, focuses strongly on welfare, education, health, infrastructure, and economic growth, while maintaining fiscal discipline. Below is a reorganised and concise summary of the major announcements:

Economic Growth & Fiscal Outlook

- Tamil Nadu recorded 11.3% economic growth in 2024–25.

- Gross State Domestic Product (GSDP) reached ₹31.19 lakh crore, retaining its position as India’s second-largest State economy.

- Fiscal deficit targeted at 3% of GSDP and revenue deficit projected at 1.2%, balancing welfare spending with fiscal responsibility.

- MoUs signed for investments worth ₹12.3 lakh crore, indicating strong investor confidence.

Health & Social Welfare

- ₹22,090 crore allocated to the Health Department.

- Welfare for persons with disabilities:

- Monthly maintenance allowance of ₹2,000 for families unable to support persons with disabilities.

- Individual assistance increased from ₹1,000 to ₹1,500, benefiting 8.52 lakh people.

- Budget allocation for disability welfare increased to ₹1,471 crore.

- 4% reservation for persons with disabilities in government employment, including promotions.

- ₹1,996 crore allocated to the Labour Welfare Department.

- Loans worth ₹1.40 lakh crore provided to 6 lakh Self-Help Groups.

- 19 Thozhi hostels established for working women.

Women & Child Welfare

- Kalaignar Magalir Urimai Thogai scheme strengthened; beneficiaries recently received ₹5,000, including summer relief.

- Property registration fee reduced by 1% for properties registered in women’s names.

- Chief Minister’s Breakfast Scheme benefited 19.34 lakh students, with ₹1,284 crore spent over four years; scheme to be expanded further.

- Free bus travel scheme for women likely to see expansion, including more electric buses.

- Education & Skill Development

- School Education: ₹48,534 crore

- Higher Education: ₹8,505 crore (₹8,550 crore mentioned in interim allocation)

- Sports Department: ₹718 crore

- ₹291 crore allocated to establish 40 new government vocational training centres.

- Tamil Pudhalvan Scheme supports 5.4 lakh male students with ₹1,000 monthly assistance.

- 6.65 lakh free laptops distributed to students so far.

Infrastructure & Urban Development

- Municipal Administration Department: ₹28,227 crore

- Rural Development Department: ₹28,687 crore

- Special Programme Implementation Department: ₹17,088 crore

- North Chennai Development Scheme works worth ₹6,045 crore.

- ₹8,911 crore spent so far under the Chief Minister’s Rural Road Project.

- ₹374 crore allocated to set up sewage treatment parks to protect Cauvery and Vaigai rivers.

- Expansion plans for roads, flyovers, and urban infrastructure across major cities.

Industry, MSMEs & Digital Growth

- MSME Department allocation increased to ₹1,943 crore.

- Information Technology & Digital Services Department allocated ₹219 crore.

- New Tidal Parks worth ₹1,070 crore planned in Tiruchy, Madurai, and Ooty.

Culture, Heritage & Tourism

- ₹285 crore earmarked for new museums across the State.

- New museums and galleries planned in Thanjavur, Gangaikondacholapuram, Erode, Ramanathapuram, Chennai, and Tiruvannamalai.

- Works of Periyar E.V. Ramasamy translated into 27 languages, including Gujarati, French, and Arabic.

Housing & Land Reforms

- 23.56 lakh house-site pattas issued over five years.

- 77,800 online pattas granted under the One Time Special Regularisation Scheme, including 15,393 in Chennai and adjoining areas.

Governance & Citizen Initiatives

- “Speak Your Dream” (Unga Kanavu Sollunga) initiative to fund select public proposals.

- Budget prepared with a focus on marginalised and underprivileged communities, ensuring inclusive growth.