Tamil Nadu Budget 2026-27 HIGHLIGHTS | Rs 285 crore outlay set aside for new museums

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 Ooty.

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.