Tamil Nadu Government Presents 2025-26 Budget with Focus on Welfare and Infrastructure

Tamil Nadu Chief Minister M.K. Stalin’s DMK-led government presented the state Budget for 2025-26 on Friday, outlining significant welfare initiatives and major infrastructure projects. With elections approaching, the Budget includes key allocations for schemes benefiting women, rural development, and industrial growth.

The Budget presentation in the assembly faced a brief interruption when AIADMK, the principal opposition party, staged a walkout. The protest was linked to allegations of corruption in the state-run liquor corporation TASMAC, which is currently under investigation by the Enforcement Directorate.

Increase in Women Commuters Availing Free Bus Travel

State Finance Minister Thangam Thenarasu, while presenting the Budget, highlighted the growing reliance on the government’s fare-free bus travel scheme for women. The number of female passengers using the service has surged from 40% to 65%.

“Currently, an average of 50 lakh women travel daily via buses operated by State Transport Undertakings, with the total number of trips reaching 642 crore. A study by the State Planning Commission indicates that this scheme saves women an average of Rs 888 per month,” he stated. To continue this initiative, the government has earmarked a subsidy of Rs 3,600 crore for the next fiscal year.

Financial Assistance for Women and Housing Projects

The ‘Kalaignar Magalir Urimai Thittam,’ which provides Rs 1,000 monthly assistance to 1.15 crore women, has been allocated Rs 13,807 crore. The minister also assured that eligible women who have not yet received aid will soon be able to apply.

Additionally, ten new ‘Thozhi’ working women’s hostels will be built at a cost of Rs 77 crore, supplementing the existing 13 facilities.

For housing development, Rs 3,500 crore has been set aside under the Kalaignar Kanavu Illam housing scheme to construct one lakh houses.

Infrastructure Boost and Education Development

The government has committed to infrastructure improvements, including the construction of a new airport in Parandur, near Chennai.

Education remains a priority, with a continued focus on the ‘Samagra Shiksha’ scheme. The ‘Ennum Ezhuthum Thittam’ initiative aims to strengthen foundational literacy, while funding is also directed towards special education, transport allowances for students in remote areas, and improving school internet access.

Centre-State Dispute Over Education Policy

Minister Thenarasu accused the Union government of withholding Rs 2,152 crore in approved funds due to Tamil Nadu’s rejection of the National Education Policy, which mandates a three-language system.

“Despite this, prioritizing students’ welfare, the state government has independently allocated resources to ensure that education in government schools is unaffected,” he asserted.

He further stated that Tamil Nadu’s people strongly support the Chief Minister’s stance on preserving the bilingual policy, even at the cost of losing central funds.

Rural Development and Urban Planning

The Budget allocates Rs 2,200 crore for the Chief Minister’s Rural Roads Development Scheme. To improve urban resilience, Rs 88 crore has been designated for ‘sponge parks’ in Chennai to facilitate groundwater recharge and prevent flooding.

New Airports and Maritime Industry Promotion

A new airport will be developed in Rameswaram, Ramanathapuram district, to boost tourism and economic activity in southern Tamil Nadu.

The Tamil Nadu Maritime Transport Manufacturing Policy 2025 has been introduced to enhance the state’s shipbuilding industry. This initiative is expected to attract investment in ship and boat design, hull fabrication, and engine manufacturing, potentially creating 30,000 jobs, particularly in Cuddalore and Thoothukudi.

Opposition Criticism and Allegations

Tamil Nadu BJP President K. Annamalai dismissed the DMK government’s Budget as “publicity-driven empty announcements” and accused the administration of widespread corruption.

“The DMK’s budget is nothing but empty rhetoric, offering no real progress while enabling corruption worth thousands of crores,” he posted on X, alongside an image of empty chairs to symbolize his claims about the government’s lack of accountability.

New Language Museum and Employment Initiatives

A major cultural initiative announced in the Budget is the establishment of ‘Agaram – Museum of Languages’ at the Madurai World Tamil Sangam campus. This museum aims to educate future generations about Tamil’s linguistic heritage through technological displays showcasing its links with other Indian languages.

On the employment front, the government has committed to filling 40,000 positions in the next financial year.

Additionally, from April 1, 2025, the registration fee for immovable properties worth up to Rs 10 lakh will be reduced by 1% if registered under a woman’s name.

A new scheme will facilitate bank loans of up to Rs 10 lakh for one lakh women entrepreneurs, with a 20% subsidy provided by the state.

Digital Access and Metro Rail Expansion

To enhance digital access, 20 lakh college students will receive either a tablet or a laptop over the next two years, with Rs 2,000 crore allocated for this scheme in 2025-26.

The Chief Minister’s breakfast scheme will also be expanded, with Rs 600 crore designated for its continued implementation.

Detailed project reports for metro rail expansions in Coimbatore and Madurai have been submitted for Union Government approval, with construction set to commence upon securing necessary funds.

Industrial Growth and Semiconductor Manufacturing

To position Coimbatore as a major industrial hub, semiconductor manufacturing parks will be developed in Sulur and Palladam, each spanning 100 acres.

Minister Thenarasu concluded his speech—lasting two hours and 38 minutes—by reaffirming the government’s commitment to infrastructure development, social welfare, and economic growth across Tamil Nadu.