In March 2025, Thangam Thennarasu, Finance Minister (FM) of Tamil Nadu (TN) presented the Budget for the Financial Year 2025-26 (FY26) with a total disbursement outlay of Rs 4,39,293 crore, and a total receipt of Rs 3,32,330 crore, excluding public debt. The total expenditure (Rs 4,39,293 crore) is an increase of 99.5% over the Revised Estimate (RE) of FY25.
- Among major sectoral allocations, Rs 55,261 crore was allocated to education, followed by Urban Development (Rs 34,396 crore) and Rural Development (Rs 29,465 crore).
Note: In the 2025-26 budget logo, the TN government replaced the Devanagari-scripted rupee symbol ( ‘₹’) with the Tamil letter ‘Roo’ (‘ரூ’), representing ‘Roobai’, the Tamil term for the rupee.
Fiscal Indicators:
i.The Government has projected its total Revenue Receipts at Rs 3,31,569 crore.
- Of this, the State’s Revenues (State Owned Tax Revenue(SOTR) of Rs 2,20,895 crore and Non-Tax Revenue of Rs 28,818 crore) account for 75.3%.
- The remaining 24.7% comes from the Share in Central Taxes (Rs 58,022 crore), and Grants-in-Aid (GIA) from the Union Government (Rs 23,834 crore).
ii.For FY26, the Gross State Domestic Product (GSDP) is estimated to be Rs 35,67,818 crores. The GSDP is estimated to grow 14.5% in 2025-26, marginally up from the 14.49% growth rate registered in the RE of FY25.
iii.The Fiscal Deficit (FD) is estimated at Rs 1,06,963 crores, the highest since 2021-22, and is estimated to reduce to 3% of GSDP next year (Budget Estimate (BE) FY26) from 3.26% this year (RE FY25).
iv.The total Revenue Expenditure (RevEx) is estimated at Rs 3,73,204 crore and it was estimated to be Rs 3,31,568 crore.
v.The Revenue Deficit is estimated to be Rs 46,467 crore this year (RE FY25) and Rs 41,635 crore in the next year as per the Budget Estimate (BE) of FY26, which is 1.17% of GSDP.
v.The Capital Expenditure (CapEx) in FY26 is projected at Rs 57,231 crore, which is an increase of 22.4% over FY25 (RE).
Key Allocations:
Education:
i.2,000 schools will receive upgraded computer labs at Rs160 crore, and Smart classrooms will be established in 2,676 Government schools at an estimated cost of Rs 65 crore.
ii.1,721 Post Graduate Teachers (PGT) and 841 graduate teachers will be appointed through direct recruitment.
iii.14 high schools in remote hilly regions will be upgraded to Higher Secondary Schools (HSS).
- New Government Arts and Science Colleges will be established in 10 districts including Chennai, Dindigul, and Thoothukudi.
iv.A state-of-the-art Chennai Science Centre will be established in collaboration with the Science Centre Singapore (SCS) at Rs 100 crore.
Agriculture:
i.TN’s 5th Agriculture Budget 2025-26 was presented by Agriculture and Farmers’ Welfare Minister MRK Panneerselvam.
ii.In the 5 years, the total budget for agriculture and allied sectors increased (nearly Rs.10,000 crore) to Rs 45,661 crore in FY26 from Rs 34,221 crore in FY22.
iii.A first-ever special incentive of Rs 349 per tonne of sugarcane above the Centre’s Fair and Remunerative Price (FRP), bringing the total cane price to Rs 3,500 per tonne.
- The government has allocated Rs 297 crore for this scheme, benefitting around 1.30 lakh sugarcane farmers.
iv.Other key initiatives include:
- Rs 102 crore special package for enhancing paddy and foodgrain production in 29 non-delta districts.
- Establishment of 1,000 Chief Minister’s (CM) Farmers Service Centres (FSCs).
Women’s Welfare Initiatives:
i.A monthly scholarship of Rs.1,000 to girls pursuing higher education under the Puthumai Penn Scheme and the Tamizh Puthalvan Scheme will be extended to them as well.
ii.Property registration fee will be reduced for women by 1% for registering all immovable assets, including houses, plots, and agricultural lands, valued up to Rs.10 lakh.
iii.Rs.225 Crore has been allocated for the Women Entrepreneurs Development Scheme for Skill Development and Training (SDT) and entrepreneurial guidance.
- It also includes access to bank loans of up to Rs.10 lakh and a 20% subsidy for 1 lakh women.
iv.Other initiatives include:
- Rs.37,000 Crore Bank Loan for 10,000 new Self Help Groups (SHGs)
- ii.Rs.75 Crore wort new project in Chennai and 4 other cities of TN to ensure women’s safety.
Allocations for SC/ST Communities:
i.Rs 75 crore has been allocated for the ‘CM’s Adi Dravidar and Tribal Socio-Economic Development Scheme’ (CM-ARISE) to enhance the status of Scheduled Castes (SC) and Scheduled Tribes (ST) as entrepreneurs.
ii.Rs 65 crore has been allocated to expand international educational opportunities for SC/ST students under the ‘Annal Ambedkar Overseas Higher Education Assistance Scheme’.
iii.Rs 733 crore has been provided towards a post-matric scholarship for SC/ST students.
Others:
i.Rs 3,915 crore has been allocated to the department of industries, investment promotion, and commerce.
ii.Rs 500 crore investment for Semiconductor Mission 2030.
iii.Rs.120 Crore has been allocated under the CM’s Thayumanavar Thittam, for assisting children who have lost both of their parents by providing Rs 2,000 per month to 50,000 poorest of the poor families.
ivUnder the CM’s Naan Mudalvan Scheme, a Rs 50,000 incentive will be provided to the youth who pass the Union Public Service Commission (UPSC) Examinations Civil Services Mains and appear for the Personality Test in New Delhi (Delhi).
- This scheme will be implemented with a financial allocation of Rs 10 crore.
v.The government has allocated Rs.25 crore to set up the Industrial Research and Innovation Fund, which will enable the partnership of industry and academia.
Major Announcements:
i.A sum of Rs.133 lakh has been allocated for the translation of Thirukkural into 45 world languages. This translation project will be completed within the next 3 years.
- When it is translated, Thirukkural will achieve the distinction of being translated into all official languages of 193 member nations recognized by the United Nations (UN).
ii.The CM’s Breakfast Scheme (Rs 600 crore allocated) will be expanded in the next academic year to urban-aided schools.
iii.Rs 120 crore has been allocated for the upgradation of the Government Arignar Anna Memorial Cancer Hospital and Research Institute (AAMCHRI) in Karapettai, Kanchipuram district.
iv.Electronics Corporation of Tamil Nadu Limited (ELCOT) will set up an Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Centre of Excellence (CoE) in Chennai named ‘Viyan AVGC-XR Hub’ at an estimated cost of Rs 50 crore.
v.Restoration of Earned Leave (EL) Surrender system, allowing government employees and teachers to encash their EL by surrendering up to 15 days of leave, from 1 April 2026.
vi.A new airport will be developed in the Rameshwaram area of Ramanathapuram district.
vii.Rs 22 crore has been estimated for the establishment of a ‘Noyyal Museum’ in Erode and Rs 21 crore has been estimated for the establishment of the ‘Naavaai Museum’ in Ramanathapuram.
viii.Announced the construction of a 3 kilometer(km) flyover in Velachery costing Rs.310 crore to address road congestion.
About Tamil Nadu (TN):
Chief Minister (CM)- Muthuvel Karunanidhi Stalin
Governor– Ravindra Narayan Ravi
Wildlife Sanctuaries– Sathyamangalam Wildlife Sanctuary, Megamalai Wildlife Sanctuary
Zoological Park– Kurumbapatti Zoological Park
