Tamil Nadu Finance Minister N. Marie Wilson on Wednesday presented the maiden State Budget for the financial year 2026–27 of the Tamilaga Vettri Kazhagam (TVK)-led coalition government.
Earlier in the day, Wilson met Tamil Nadu Chief Minister S. Joseph Vijay before presenting the Budget. Sharing a post on X, he said, "I had the privilege of meeting the Honorable Tamil Nadu Chief Minister Thiru. S. Joseph Vijay at the Chief Secretariat and received his best wishes before presenting the Revised Budget Estimates for the year 2026–2027 of the Government of Tamil Nadu in the Tamil Nadu Legislative Assembly."
The education sector received the highest allocation, with the School Education Department getting Rs 44,527 crore and the Higher Education Department receiving Rs 8,393 crore. The Health and Family Welfare Department was allocated Rs 23,357 crore, while the Energy Department received Rs 15,828 crore. The Special Programme Implementation Department was allocated Rs 17,150 crore, followed by the Agriculture Department with Rs 14,984 crore. The Cooperation Department received Rs 8,028 crore, while the Labour Welfare and Skill Development Department was allocated Rs 2,022 crore.
Tamil Nadu Budget 2026-27
Photo Credit: ChatGPT
Here are the key highlights from the Budget speech:
- Education gets the biggest push: With the highest budget allocation, 'Palli Niraivu Thittam' will modernise 3,734 schools at an estimated cost of Rs 2,132 crore.
- Breakfast scheme expanded: The Perunthalaivar Kamarajar Breakfast Scheme has been extended to Classes VI-VIII, benefiting 15.14 lakh more students with an allocation of Rs 710 crore.
- Vetri Laptop Scheme: Rs 2,000 crore allocated to provide laptops to college students.
- Health sector allocation: The Health and Family Welfare Department received Rs 23,357 crore.
- 200 units of free electricity: Free power entitlement doubled from 100 to 200 units for eligible domestic consumers, with Rs 1,545 crore allocated.
- Power subsidy: The government earmarked Rs 18,860 crore for power subsidies, including Rs 5,000 crore for the Tamil Nadu Generation and Distribution Corporation.
- Crop loan waiver: A Rs 5,932 crore cooperative crop loan waiver will benefit 14.43 lakh farmers.
- TN-SUDAR hostels: The government will build 200 integrated student hostels with 1 lakh beds under a Rs 3,200 crore project.
- Renewed demand to scrap NEET: The state government reiterated its demand that the Union government abolish the NEET examination.
- Newborn welfare scheme: Under 'Thai Maaman Thanga Mothiram Thittam', babies born in government hospitals will receive a 1-gram gold ring, with Rs 560 crore allocated.
- Women's welfare: The 'Annan's Seer' scheme will provide an 8-gram gold coin and a silk saree to eligible brides, with Rs 812 crore allocated.
- India's first AI city: Tamil Nadu announced plans to develop 'Arivagam', India's first dedicated AI city, with Rs 5 crore for a feasibility study.
- Space investment zone: Thoothukudi and Tirunelveli will be developed as a Space Industrial Investment Zone.
- Youth skill development: The 'Vetri Skill Training Scheme' will cover 12 lakh college students and 1 lakh unemployed youth, while an AI programme with IIT Madras aims to train 5 lakh youth by 2031.
- Revenue generation measures: The government expects to raise additional revenue through an expert panel on revenue augmentation, a higher privilege fee on liquor manufacturers, and faceless GST assessment, registration and mining computerisation, which together are projected to generate around Rs 15,000 crore in additional revenue.
- An additional privilege fee on liquor manufacturers is expected to generate up to Rs 1,000 crore annually.
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