TN interim budget presentation ends
Tax revenue estimated at Rs 2,29,579 crore
Rs 3,934 crore has been earmarked for the Adi Dravidar and Tribal Welfare Department.
Finance Minister Thangam Thennarasu said, despite a higher increase in tax devolution for states such as Karnataka, Tamil Nadu’s share has been raised by only 0.4 percent.
Rs 4,435 crore has been allocated for livestock, dairy and fisheries. A fishing port will be established at Thangachimadam, while fishing landing sites will be set up at Pamban and Kunthukal.
Riverfront development projects will be taken up in Tiruchirappalli, Madurai, Erode, Coimbatore and Tirunelveli, covering the Cauvery, Vaigai, Noyyal and Thamirabarani rivers, for Rs 374 crore
Rs 15,591 crore – Combined Drinking Water Supply Schemes
Rs 3,109 crore – Ring Main Pipeline Project (Chennai)
The Central government has not approved the DPRs for the Coimbatore and Madurai Metro Rail projects. It should reconsider the decision.
— Thangam Thennarasu
Rs 1,943 crore for Textiles and Khadi Department
Rs 7,547 crore for housing and urban development
Rs 11,000 crore to implement the new pension scheme. Rs 1,55,977 crore allocated towards salaries, pensions, and related expenditures.
An allocation of Rs 58 crore has been made for the development of ancient mosques and dargahs.
Rs 25 crore has been allocated for the renovation of ancient temples.
Recovery of 8,113 acres of temple lands valued at Rs 8,363 crore, said Minister Thangam Thennarasu.
To boost Chennai’s drinking water supply, the Chief Minister laid the foundation stone for the Mamallan Reservoir (2.25 TMC), to be built at a cost of Rs 342 crore in the Kovalam sub-basin near Thiruporur, close to Chennai.
Steps have been taken to provide 30,000 more houses to sanitation workers..
To improve infrastructure in SC settlements, projects worth Rs 1,000 crore have been undertaken.
Crop loan waivers of Rs 12,359 crore have been provided in cooperative banks.
Rs 1,394 crore for Tourism Department
-- Flood mitigation works have been carried out in Chennai at a cost of Rs. 1,618 crore.
-- A plan to provide high-speed internet connectivity to 95% of villages has been implemented.
- In the Interim Budget, Rs 13,062 crore has been allocated to the Tamil Nadu Government’s Transport Department.
- Over five years, action has been taken to purchase 12,087 new buses at a cost of Rs 6,121 crore.
- Funds have been allocated for the purchase of 12,000 new buses.
- Roads totaling 1,885 km in length are being widened into four lanes at a cost of Rs 8,313 crore.
- An allocation of Rs 4,000 crore has been made for the Women’s Morning Travel Scheme.
The government said work is underway to establish the ‘Tamil Nadu Knowledge City’ and a ‘Global City’ over 2,000 acres near Chennai, while India’s largest workers’ hostel with 18,720 beds has been built at Sriperumbudur at a cost of Rs 706 crore.
Rs 219 crore for IT Department
Rs 10,076 crore for Water Resources department
Rs 18,091 crore for Energy Department
Rs 13,062 crore for Tansport Department
The Finance Minister said work is underway, in collaboration with Indian Institute of Technology Madras, to set up a Centre for Advanced Semiconductor Technologies and a semiconductor design and testing Centre of Excellence at Taramani in Chennai.
An allocation of Rs 18,301 crore has been made for the Energy Department, said Minister Thangam Thennarasu.
An allocation of Rs 500 crore is being made for the Tamil Nadu Semiconductor Project.
An allocation of Rs 1,943 crore has been made for the Micro, Small and Medium Enterprises (MSME) Department.
New tidal parks worth Rs 1,070 crore are planned in Tiruchy, Madurai, and Hosur.
An allocation of Rs 219 crore has been made for the Information Technology and Digital Services Department.
An allocation of Rs 291 crore has been made to establish 40 new government vocational training centers.
Memorandums of Understanding have been signed for investments totaling Rs 12.3 lakh crore.
An allocation of Rs 22,090 crore has been made for the Health Department.
- Monthly financial support has been strengthened, with a Rs 2,000 maintenance allowance for families unable to support persons with disabilities and an increase in individual assistance from Rs. 1,000 to Rs. 1,500, benefiting 8,52,680 people.
- Budgetary support for the welfare of persons with disabilities has risen sharply, from Rs. 814 crore in 2021–22 to Rs. 1,433 crore in 2025–26.
- Budgetary allocation for the welfare of persons with disabilities has risen steadily, reaching Rs. 1,471 crore in the Interim Budget Estimates.
An allocation of Rs 22,090 crore has been made for the Health Department.
Over the past five years, house-site pattas have been issued to 23,56,623 individuals, including 77,800 online pattas granted under the One Time Special Regularisation Scheme to families living on unobjectionable government poramboke lands, with 15,393 issued in Chennai and its adjoining areas and 62,407 in other urban regions across the State. - Minister Thangam Thennarasu
Modelled on the Pudhumai Penn scheme to promote women’s education, the Tamil Pudhalvan scheme was launched to encourage men to pursue higher education, benefiting 5,40,511 students so far with monthly assistance of Rs 1,000. - Minister Thangam Thennarasu
The Chief Minister’s Breakfast Scheme, aimed at ensuring that children from underprivileged families do not attend school hungry, has improved attendance and learning outcomes, benefiting 19.34 lakh students, with Rs. 1,284 crore spent over the past four years - Minister Thangam Thennarasu
An allocation of Rs 374 crore has been made to set up sewage treatment parks to prevent the mixing of wastewater into the Cauvery and Vaigai rivers.
An allocation of Rs 1,996 crore is being made for the Labour Welfare Department.
Various works are being undertaken under the North Chennai Development Scheme at an estimated cost of Rs 6,045 crore.
An allocation of Rs 28,227 crore has been made for the Municipal Administration Department in the Interim Budget
Allocations include Rs. 8,505 crore for higher education, Rs. 48,534 crore for school education, and Rs. 718 crore for the sports department. The Chief Minister’s Rural Road Project has received Rs. 8,911 crore so far, while Rs. 5,463 crore has been earmarked for social sector programmes. - Minister Thangam Thennarasu
An allocation of Rs 28,687 crore is being made for the Rural Development Department.
An allocation of Rs 17,088 crore has been made for the Special programme implementation department in the Interim Budget.
4 percent reservation has been provided for persons with disabilities in government employment, and reservation has also been extended to promotions.
The works of Periyar EV Ramasamy have been translated into 27 languages, including Gujarati, French, and Arabic - Minister informs House
Opposition AIADMK releases an invitation card mocking the govt's announcements, calling it an “ear-piercing ceremony” (kathu kuthu vizha).
The works of Periyar EV Ramasamy have been translated into 27 languages, including Gujarati, French, and Arabic - Minister informs House
Free laptops have been distributed to 6.65 lakh students so far - Minister
An allocation of Rs 8,550 crore has been made for the Higher Education Department in the interim budget.
The registration fee for registering properties in the name of women has been reduced by 1 percent.
Loans amounting to Rs 1.40 lakh crore have been provided to 6 lakh self-help groups. 19 Thozhi hostels have been established.
Citing strong public response to the Keezhadi and Porunai museums and the recent opening of the Keezhadi Open-Air Museum, the minister announced the establishment of multiple new museums and galleries across the State, including in Thanjavur, Gangaikondacholapuram, Erode, Ramanathapuram, Chennai and Tiruvannamalai, at a total estimated cost of Rs 285 crore.
"Tamil Nadu has achieved double-digit economic growth. Over the past five years, we have announced schemes that are acclaimed nationwide. These initiatives have reached everyone, from women to the last citizen, with substantial credit extended to women’s self-help groups,” said Finance Minister Thangam Thennarasu.
Calling the Kalaignar Magalir Urimai Thogai a pioneering scheme watched closely across the country, the Minister recalled that the beneficiaries recently received Rs 5,000 credited to their accounts: Rs 3,000 as an advance for three months of assistance and an additional one-time summer relief of Rs 2,000.
He says the Budget has been prepared to benefit the marginalised people.
Finance Minister Thangam Thennarasu has begun presenting the Tamil Nadu interim budget for 2026–27.
The interim budget comes against a strong economic backdrop. Tamil Nadu recorded 11.3 per cent growth in 2024-25, with its Gross State Domestic Product (GSDP) rising to Rs 31.19 lakh crore, retaining its position as India’s second-largest State economy.
Despite the welfare push, the government aims to reduce the fiscal deficit to 3 per cent of GSDP by 2025-26, while the revenue deficit is projected at 1.2 per cent, signalling a balancing act between populist measures and fiscal discipline.
Under the Chief Minister’s “Speak Your Dream” ( Unga Kanavu Sollunga ) initiative, select public proposals may receive funding support. The breakfast scheme for students is also likely to be fully extended to government-aided schools, with additional budgetary allocations.
On the infrastructure front, the State may spell out its roadmap after the Centre reportedly declined approval for the Coimbatore and Madurai Metro Rail projects. Expansion of the free bus travel scheme for women, induction of more electric buses, and fresh allocations for roads and flyovers in Chennai and other major cities are also expected.
Attention is also on the government’s recently announced Assured Pension Scheme for State employees. The report of the expert committee constituted to examine the scheme may be made public, a move that could help consolidate support among government staff.
The interim budget is expected to spotlight the Kalaignar Magalir Urimai Thittam, which currently offers Rs 1,000 a month to eligible women heads of households. Chief Minister MK Stalin has earlier signalled a possible hike to Rs 2,000, and the budget is widely expected to formalise the increase and expand beneficiary coverage, a move seen as electorally significant.
The Tamil Nadu government will present its interim budget for the 2026-27 fiscal year in the State Legislative Assembly on Tuesday (February 17), with Finance Minister Thangam Thennarasu set to lead the presentation at 9:30 am.
The interim budget session will kick off following the release of the State’s second Economic Survey, which highlights robust growth trends and sectoral performance that are expected to frame today’s financial discussions.
As this is an election year, the interim budget is expected to prioritise major welfare announcements and enhanced allocations for ongoing flagship schemes rather than unveil entirely new projects.
The Minister is also scheduled to table the Vote-on-Account for 2026-27 and the Supplementary Estimates for 2025-26 on February 20.