CHENNAI: The Tamil Nadu government on Tuesday presented its Interim Budget for 2026-27, bereft of any new schemes and allocations largely focused on sustaining ongoing programmes and strengthening key sectors.
The General Budget and the Agriculture Budget were presented by Minister for Finance, Environment and Climate Change Thangam Thennarasu and Minister for Agriculture MRK Panneerselvam, respectively. While no fresh announcements were made, major departments received enhanced allocations, compared to 2025-26 Budget estimates.
The Rural Development Department has been allocated Rs 29,465 crore, up from Rs 28,687 crore. The Municipal Administration and Water Supply department received Rs 28,277 crore, compared to Rs. 26,678 crore last Budget.
Key departments such as Higher Education, Sports Development, Health and Family Welfare, Industries, Information Technology, Water Resources, Highways and Public Works have also received enhanced allocations, ranging from Rs 100 crore and Rs 500 crore over the previous Budget.
Among them, School Education and Energy received a significant share, with Rs 48,534 crore and Rs 10,076 crore, respectively.
Housing, Adi Dravidar Welfare, and Tribal Welfare departments have been allocated funds on par with last year's Budget.
Despite increased allocations, the State continues to face a revenue deficit. The revenue deficit for 2025-26 is estimated to rise to Rs 69,219 crore in the Revised Estimates, compared to Rs 41,635 crore in the Budget Estimates. For 2026-27, the revenue deficit is projected at Rs 48,696.32 crore in the Interim Budget.
Total revenue expenditure has increased from Rs 3,73,204 crore in the 2025-26 Budget Estimates to Rs 3,78,917 crore in the Revised Estimates. It is projected to rise further to Rs 3,93,271.63 crore in 2026-27, marking a 3.79% increase over the Revised Estimates.
Revenue receipts, which stood at Rs 3,31,569 crore in the 2025-26 Budget Estimates, are estimated at Rs 3,09,698 crore in the Revised Estimates and are projected to increase to Rs 3,44,575.31 crore in 2026-27.
The government plans to borrow Rs 1,79,809.65 crore during 2026-27 and repay Rs 60,413.42 crore. As a result, the outstanding debt is expected to reach Rs 10,71,770.34 crore by March 31, 2027, accounting for 26.35% of the Gross State Domestic Product.
