TN Budget 2026 HIGHLIGHTS | Rs 44,527 crore for school education, Rs 9,818 crore for social welfare; liquor cess target at Rs 16,000 crore

Reviving one of former Chief Minister J Jayalalithaa’s most popular rural welfare initiatives, the Tamil Nadu government on Wednesday announced the return of the free milch cow distribution scheme while unveiling a new goat rearing programme for vulnerable women, signalling a renewed push to strengthen rural livelihoods through the livestock sector.

For the welfare of Persons with Disabilities, the Tamil Nadu government has announced financial assistance of up to 50 percent, or up to Rs 30,000, for the purchase of AI-based assistive devices. And, for the Welfare of Differently-Abled Department, the government has allotted Rs 1,485 crore.

The Tamil Nadu government has announced a series of welfare initiatives under the Social Welfare and Women Empowerment Department, with a total allocation of Rs 9,818 crore focusing on women, children, senior citizens and the transgender community.

The TVK-led Tamil Nadu government on Wednesday accused the previous DMK regime of allowing the State's revenue-earning departments to "bleed uncontrollably" and permitting public funds to be siphoned off through middlemen.

"The previous government allowed revenue-earning departments to bleed uncontrollably, while permitting a significant portion of public money spent on works to be extracted by unscrupulous middlemen. Since assuming office, this government has made continuous efforts to plug leakages on both the revenue and expenditure sides, enabling it to mobilise nearly Rs 15,000 crore," the Budget document stated.

Total size of the Budget

• Total Receipts: Rs 3,50,766 crore

• Total Disbursements: Rs 4,72,585 crore

• Deficit: Rs 1,21,819 crore

Sources of revenue

• State's Own Tax Revenue: Rs 2,26,740 crore

• State's Own Non-Tax Revenue: Rs 27,835 crore

• Grants-in-Aid from Union Government: Rs 32,921 crore

• Share in Central Taxes: Rs 62,531 crore

Revenue expenditure

• Salaries: Rs 91,032 crore

• Subsidies and Grants: Rs 1,74,494 crore

• Pension and Retirement Benefits: Rs 41,846 crore

• Interest Payments: Rs 78,682 crore

• Operation and Maintenance: Rs 19,748 crore

How one rupee is mobilised

• State's Own Tax Revenue – 43.3%

• Share in Central Taxes – 11.9%

• Grants-in-Aid from Union Government – 6.3%

• State's Own Non-Tax Revenue – 5.3%

• Recovery of Loans and Capital Receipts – 0.1%

How one rupee is spent

• Subsidies and Grants – 33.2%

• Salaries – 17.3%

• Interest Payments – 15.0%

• Capital Expenditure – 10.9%

• Repayment of Debt – 9.9%

• Pension and Retirement Benefits – 8.0%

• Operation and Maintenance – 3.8%

• Loan Disbursals – 1.9%

Education - Rs 52,920 Crore

Rural Development - Rs 39,609 Crore

Urban Development - Rs 38,715

Health - Rs 23,357

Food and Co-Operation - Rs 22,859 Crore

Highways  - Rs 21,524

Energy - Rs 15,828 Crore

Police - Rs 14,552

Transport - Rs 13,561 Crore

Social Welfare - Rs 9,819 Crore

Water Resources - Rs 9,264 Crore

Industries and MSME - Rs 6,556 Crore

Social Justice - Rs 3,938 Crore 

• Singapenn Special Task Force for women's safety; Rs.354 crore allocated.

• 65 STING units (Special Task force for Interdiction of Narcotics and Gangs) to tackle narcotics and gangs across Tamil Nadu.

• Rehabilitation Fund for de-addiction; Rs.70 crore allocated.

• New Road Safety Policy; Rs.200 crore under the CM Accident Relief Fund and Rs.130 crore under the Road Safety Fund.

• Rs.431 crore for police residential quarters benefiting 5,000 police families.

• Rs.17,290 crore allocated to the Home, Prohibition and Excise Department.

TN Budget 2026: Key announcements for governance reforms

• AI, agentic workflows and speech-to-text tools to modernise government administration.

• Quality Assurance Audit Board backed by AI to monitor file movement and decision quality.

• Governance Processes Reforms Committee under the Chief Secretary to simplify administrative procedures.

• Annual recruitment planner to be published by all recruitment agencies.

• Right to Services Act to be introduced to guarantee time-bound delivery of public services.

1. Singappenngal Valimaippaduthum Thittam – Rs.5 lakh investment subsidy for eligible SHG enterprises.

2. Rs.38,000 crore credit target for SHGs under the Annual Credit Plan.

3. Loan and subsidy sanction process to be fully computerised with integrated co-audit.

TN Budget 2026: Key announcements for public distribution system

• Doorstep delivery of essential commodities for senior citizens, persons with disabilities and vulnerable communities; Rs.7.18 crore.

• Pilot supply of packaged wheat flour through PDS; Rs.18 crore.

• Rs.14,000 crore for food subsidy.

• Rs.14,830 crore allocated to the Food and Consumer Protection Department.

1. Vetri Veedu Thittam launched for families living in kutcha huts.

2. House construction assistance increased from Rs.3.1 lakh to Rs.5 lakh; 70,000 houses to be sanctioned at Rs.3,500 crore.

3. TN-VETRI to integrate rural infrastructure schemes, with sub-missions for water supply, sanitation, solid waste management and connectivity; Rs.6,000 crore annual allocation.

4. Rs.1,000 crore for peri-urban panchayats and Rs.100 crore for hill village panchayats under TN-VETRI.

5. MGNREGS to be implemented with Rs.12,642 crore, including Rs.5,057 crore State contribution.

6. Vetri 150 to provide an additional 25 days of employment to eligible households; Rs.100 crore annually.

7. Rs.39,609 crore allocated to the Rural Development and Panchayat Raj Department.

Check out the TN Budget 2026 full document here:

1. Government reiterates opposition to the Mekedatu project, seeks timely Cauvery releases, raising of the Mullai Periyar water level, Anaimalaiyar and Nallar dams, and the Godavari–Cauvery river link.

2. Cauvery–Vaigai–Gundar River Linking Project to begin this year; Rs.150 crore allocated.

3. Rs.50 crore for DPRs for the Pennaiyar–Cheyyar, Pennaiyar–Palar and Tamirabarani–Vaippar river-linking projects.

4. Rs.25 crore for feasibility studies to restore the Cauvery, Vaigai and Tamirabarani rivers.

5. Rs.10 crore for feasibility study on barrages across the Cauvery and Rs.10 crore for ecological restoration of the Cauvery Delta.

6. Rs.9,264 crore allocated to the Water Resources Department.

TN Budget 2026: Key announcements for environment, climate change and forests

• TN-SHORE project to restore 2,500 hectares of mangroves across eight coastal districts; Rs.322 crore allocated.

• Human-wildlife conflict mitigation scheme in 100 villages across 11 districts; Rs.20 crore allocated.

• Rs.1,762 crore allocated to the Environment, Climate Change and Forests Department.

1. Rs.9,300 crore under the Comprehensive Road Infrastructure Development Programme for four-laning state highways, bypasses, road safety works, bridges and road upgrades.

2. Safe Roads Mission to improve road design, construction, maintenance, AI-based traffic enforcement and trauma care.

3. Rs.250 crore for road repairs under Performance-Based Maintenance Contracts; defects can be reported through the Namma Salai app.

4. Rs.21,524 crore allocated to the Highways and Minor Ports Department.

TN Budget 2026: Key announcements for transport

1. 1,000 new air-conditioned electric buses for Chennai MTC under the Gross Cost Contract model; Rs.500 crore for depot infrastructure.

2. Rs.7,675 crore subsidy for State Transport Undertakings, Rs.2,650 crore as performance gap funding and Rs.1,005 crore as share capital assistance.

3. Rs.13,561 crore allocated to the Transport Department.

---

TN Budget 2026: Key announcements for metro rail

1. Chennai Metro Phase II (118.9 km) progressing; Poonamallee Bypass–Porur Junction stretch to open shortly.

Metro proposals awaiting Centre's approval:

Chennai Airport–Kilambakkam

Koyambedu–Pattabiram via Avadi

Poonamallee–Sunguvarchathiram via Sriperumbudur

Hosur–Bommasandra (Karnataka) Metro.

1. Chief Minister's Integrated Urban Development Mission launched with Rs.2,117 crore, covering urban infrastructure, water supply, underground sewerage, solid waste management, roads, urban transport, green spaces, water bodies, AI-driven e-governance and urban public health.

2. Intelligent Transport Management System in Chennai in final stages; comprehensive street redesign, smart parking at 20 locations, and road improvements in Ambattur and Guindy industrial estates.

3. Blue-green infrastructure projects around Chennai's water bodies to mitigate urban flooding.

4. Ring Main Pipeline project worth Rs.3,108 crore to ensure round-the-clock drinking water supply across Chennai by 2030–31.

5. People-friendly streets with pedestrian pathways, cycling lanes, junction improvements, safe school access and LED streetlights in all municipal corporations.

6. Global tenders and DPRs to restore the Cooum and Adyar rivers through river rejuvenation.

7. Rs.29,863 crore allocated to the Municipal Administration and Water Supply Department.

1. Third Master Plan (2027–2046) for the Chennai Metropolitan Area (1,189 sq km) is being prepared to guide future growth.

2. Comprehensive Master Plan to be prepared for the expanded Chennai Metropolitan Area, covering 5,904 sq km, benchmarked against global metropolitan planning frameworks; Rs.25 crore sanctioned.

3. SPEED – An AI-enabled single-window planning approval system integrating the CMDA, DTCP and local bodies to provide timely and transparent planning permissions across Tamil Nadu; Rs.40 crore allocated.

4. 24,131 multi-storied tenements under construction to be completed this year; work to begin on 14,194 additional tenements; Rs.1,253 crore allocated.

5. MY-HOME (Metropolitan Youth and Family Housing Scheme) – 1 lakh housing units to be developed in Chennai over seven years through PPP, attracting

6. Rs.15,000 crore investment, supported by Rs.3,500 crore in Viability Gap Funding and a Digital Rental Voucher system.

7. Rs.8,852 crore allocated to the Housing and Urban Development Department.

Land and industrial infrastructure:

New SIPCOT industrial parks will be established in industrially backward districts based on district-specific industrial plans and sectoral strengths, with state-of-the-art infrastructure; approximately Rs.3,200 crore over the next five years.

5. Thoothukudi and Tirunelveli will be declared a Space Industrial Investment Zone, supported by a Space Vehicle Common Technical Facility in collaboration with IN-SPACe.

6. The government will strive to establish more Multi Modal Logistics Parks (MMLPs), Dry Ports, petrochemical and ancillary industries, and explore the possibility of new ports in Tamil Nadu.

7. A new Tamil Nadu Industrial Policy will be released to support innovation, emerging industries, exports and sustainable development.

8. India's first AI and Innovation City, 'Arivagam', will be developed with an AI university, semiconductor testing lab, innovation incubators and residential infrastructure; Rs.5 crore allocated for the feasibility study.

1. Tamil Nadu Women Entrepreneurs Empowerment Scheme – Rs.225 crore.

2. Capital Subsidy Scheme – Rs.352 crore.

3. Green Steel Production Initiative – Rs.300 crore over five years.

4. Tamil Nadu Institute of Design to be established

5. Technical Textiles Transformation Scheme for Entrepreneurs.

6. Tamil Nadu Palmyra Development Corporation – Rs.16 crore.

7. Tiruppur Textiles Technology Centre (TTTC) – Rs.10 crore.

The Tamil Nadu government has announced special measures to mitigate the impact of a potential super El Nino. A total of Rs 340 crore has been allocated from the State Disaster Response Fund to strengthen drinking water supply, augment water resources and ensure fodder availability for livestock.

Finance Minister N Marie Wilson on Wednesday announced that smart meters will be installed for all electricity consumers in Chennai, alongside a new rooftop solar subsidy scheme offering up to Rs 1 lakh for households and financial support for Resident Welfare Associations (RWAs) to install electric vehicle (EV) charging stations in residential complexes.

1. New Tamil Nadu Industrial Policy to promote innovation, emerging sectors and exports.

2. Guidance 3.0, an AI-powered investment service system, and Tamil Nadu Single Window Portal 3.0.

3. Non-Resident Tamil Investment Facilitation Desk to promote diaspora investment.

4. New SIPCOT industrial parks in backward districts; Rs.3,200 crore over five years.

5. Thoothukudi and Tirunelveli to become a Space Industrial Investment Zone.

6. 'Arivagam', India's first dedicated AI and Innovation City; feasibility study at Rs.5 crore.

1. Crop loan waiver of Rs.5,932 crore, benefiting 14.43 lakh farmers.

2. Kuruvai Package Scheme with an outlay of Rs.134 crore.

3. Rs.7,432 crore allocated towards electricity subsidy for farmers.

4. Rs.14,984 crore allocated to the Agriculture and Farmers' Welfare Department

1. Vetri Magalir Goat Rearing Scheme – five goats or sheep with 100% subsidy for eligible beneficiaries; Rs.110 crore.

2. 41 veterinary hospital buildings, 25 veterinary polyclinics, 210 upgraded veterinary hospitals and 143 mobile veterinary units.

3. 'Kaalnadaigal Kaappom' livestock insurance scheme; Rs.31 crore.

4. Fodder seed banks and depots; Rs.13 crore for green fodder cultivation and grazing land restoration.

5. Lean-period fishing assistance increased from Rs.6,000 to Rs.7,000 per family, benefiting 1.93 lakh families; Rs.135 crore.

6. Interest subsidy for purchase of deep-sea fishing boats; Rs.12 crore.

7. Free milch cows for 10,000 eligible women every year; Rs.57 crore.

1. New BESS Promotion Policy to attract investment in Battery Energy Storage Systems.

2. Rooftop Solar Subsidy Scheme with subsidy up to Rs.1 lakh; Rs.50 crore allocated.

3. Smart meters to be introduced in Chennai and for 50 lakh industrial and commercial consumers.

4. 178 new substations and replacement of 40,000 transformers.

5. 20,000 public EV charging stations over five years; Rs.50 crore allocated.

6. Subsidy for RWAs to install EV charging stations; Rs.5 crore.

7. Free electricity entitlement increased from 100 units to 200 units for eligible households; Rs.1,545 crore allocated.

8. *Rs.18,860 crore allocated towards electricity subsidy.

1. Tamil Nadu Artificial Intelligence Mission (TN AI Mission) to be strengthened to cover AI, Quantum Technology, AVGC-XR and AI applications across sectors.

e-Sevai 2.0 centres to be rolled out across the State.

2. 'Namma Arasu' WhatsApp Chatbot to expand from 76 to 275 public welfare services.

3. Rs.398 crore allocated to the AI, Information Technology and Digital Services Department.

The Tamil Nadu government has launched the MY-HOME (Metropolitan Youth and Family Housing) scheme for Chennai. To be implemented under the Public-Private Partnership (PPP) model with an investment of Rs 15,000 crore, the project aims to construct one lakh homes over the next seven years for low-income families and young people. The government will provide Rs 3,500 crore as viability gap funding, Finance Minister N Marie Wilson announced.

The Tamil Nadu government has announced plans to transform the Cooum and Adyar rivers into world-class urban waterways. A detailed feasibility study and project report will be prepared, with proposals including boating facilities, riverfront promenades and recreational spaces. The initiative aims to make the two rivers a new landmark for Chennai.

1. 'Thai Maaman Thanga Mothiram Thittam' – Every newborn delivered in a Government hospital will receive a 1-gram gold ring; Rs.560 crore allocated.

2. 1,000 Mobile Geriatric Treatment Centres to be introduced in phases across Tamil Nadu; Rs.33 crore allocated.

3. 'Thai Care' maternity support centres to be established for pregnant women, offering free meals, medical care and health monitoring; Rs.23 crore allocated.

4. Hub-and-Spoke Telemedicine System to connect specialist doctors with Primary Health Centres and Government hospitals, beginning with 5 hubs and 200 spokes; Rs.18.5 crore allocated.

5. Five zonal cancer care hospitals to be established under a Hub-and-Spoke model; Rs.10 crore allocated for preparing the Detailed Project Report.

6. Rs.100 crore additional allocation to ensure an uninterrupted supply of medicines for patients with hypertension, diabetes and cancer.

7. Rs.23,357 crore allocated to the Health and Family Welfare Department.

*.School Education Department: Rs 44,527 crore

*.Higher Education Department: Rs 8,393 crore

*.Labour Welfare and Skill Development Department: Rs 2,022 crore

*.Special Programme Implementation Department: Rs.17,150 crore

*.Cooperation Department: Rs 8,028 crore

*.Agriculture Department: Rs 14,984 crore

Finance Minister N Marie Wilson announced that the Tamil Nadu government will provide five goats free of cost under a 100% subsidy to widows, destitute women, transgender persons and persons with disabilities. The Budget has allocated Rs 110 crore for the livelihood support scheme.

The Tamil Nadu government will organise Tamil Nadu Rural Games to promote and showcase the State's traditional sports on the global stage. The Budget has earmarked Rs 42 crore for the initiative, Finance Minister N Marie Wilson announced.

The Tamil Nadu government will establish Thai (Mother) Care service and assistance centres for pregnant women across the State. Expectant mothers nearing delivery can stay at these centres and receive free accommodation, food, medical care and continuous health monitoring. The Budget has allocated Rs 23 crore for the initiative, Finance Minister N Marie Wilson announced.

The Tamil Nadu government will establish five regional cancer care hospitals under a Hub-and-Spoke model to strengthen oncology services across the State. The Budget also provides for cancer research and development, with an allocation of Rs 10 crore.

TN Budget 2026: From anganwadis and senior citizens to disability and transgender welfare, key announcements

1. Aandror Development Scheme – Rs 250 crore allocated for tribal habitations to improve housing, roads, drinking water, streetlights, livelihood infrastructure, community assets, and education-related facilities.

2. Equal Opportunity for All – Rs 462.41 crore allocated to protect the 69% reservation policy through legal efforts and continue the 7.5% medical quota for government school students.

3. Welfare of Persons with Disabilities – Rs 1,485 crore allocated.

4. Social Welfare & Women's Rights – Rs 9,818 crore allocated.

5. Annanin Seer Scheme – Financial assistance for women's marriages with 8 grams of gold and one silk saree; Rs 812 crore allocated.

6. Secular Social Justice Initiatives – Educational assistance for minorities; Haj subsidy increased from Rs 25,000 to Rs 35,000; Rs 1.05 crore for Christian and Muslim women's self-help groups; Rs 34 crore for burial ground and cemetery development.

7. Kamarajar Breakfast Scheme Expansion – Extended to Classes 6-8; benefits 15.14 lakh students; Rs 710 crore allocated.

8. New Old Age Homes – 12 new old age homes to be established across 12 districts; Rs 6.6 crore allocated.

9. Transgender Welfare – Subsidised loans for self-employment with grants up to Rs 50,000; 'Aran' shelter homes in 5 districts; short-stay homes in 15 districts.

10. Anganwadi Upgradation – 500 dilapidated Anganwadi centres to get new buildings with drinking water, toilets, electricity, and improved child-friendly infrastructure.

11. Senior Citizens' Recreation Centres – Libraries, yoga, meditation and indoor recreation facilities to be established initially in 5 districts.

1. RS 44,527 crore allocated for school education.

2. RS 8,393 crore allocated for higher education.

3. RS 277 crore to provide helmets and bicycles to 5.32 lakh Class 11 government and aided school students in 2026–27.

4. RS 10 crore to modernise public libraries into digital libraries.

5. 12th standard syllabus to be updated to include NEET-oriented content.

6. RS 2,000 crore allocated under the Vetri Thiran Payirchi Thittam for skill development.

7. 300 government schools in urban areas to receive modern science laboratories.

8. RS 10 crore to establish Tamil Nadu Students Hostel Development Corporation (TNSHIC/SPV).

9. TN-SUDAR scheme: RS 3,200 crore project to build 200 hostels, with the government contributing RS 640 crore (20%).

10. RS 10 crore for a new initiative to strengthen AI and robotics training in government industrial training institutes (ITIs).

11. RS 3 crore for a minor and small industries apprenticeship training scheme, targeting 22,500 youth over five years.

12. RS 90 crore to establish five new industrial training institutes (ITIs).

The Tamil Nadu government has expanded the Perunthalaivar Kamarajar Breakfast Scheme to cover students of Classes 6 to 8. The scheme will benefit 15.14 lakh students studying in 15,414 schools, with an allocation of Rs 710 crore.

As Tamil Nadu's first Budget session commenced, Opposition leaders Udhayanidhi Stalin and Edappadi K Palaniswami, along with TVK MLAs, arrived at the Assembly.

The Tamil Nadu government has allocated Rs 2,022 crore to the Labour Welfare and Skill Development Department in the 2026-27 Budget, Finance Minister N Marie Wilson announced.

1. Rs 150 crore allocated for the Vetri Thiran Payirchi Thittam (skills training scheme)

2. 12th pass students and graduates can benefit from the scheme.

3. 20,000 youth from government and private sectors will receive training annually.

4. Monthly financial assistance will be provided to eligible trainees during the training period.

5. 5,000 government school students will receive TN SPARK training.

6. A new AI Economy Mission will be launched to equip students, graduates and professionals with AI skills.

7. Five institutions will receive special financial assistance to promote AI-related education and research.

8. Rs 17,150 crore allocated for the School Education Department.

9. Rs 2,022 crore allocated for the Higher Education Department.

The Tamil Nadu government has allocated Rs 7 crore for a drug abuse awareness programme in schools. Finance Minister N. Marie Wilson also announced that the Drugs Free Tamil Nadu mobile app will be strengthened to enable the public to report incidents related to the spread of narcotics.

The Tamil Nadu government will set up 10 Olympic Centres of Excellence across the State to nurture athletes with the goal of winning Olympic gold medals. The Budget has allocated Rs 50 crore for the initiative

The Tamil Nadu government will establish a Special Purpose Vehicle (SPV) to improve student hostel infrastructure across the State. An initial allocation of Rs 10 crore has been made for the initiative

Rs 560 crore allocated for 'Thaimaman Thanga Modhiram' (Gold Ring) scheme. Under the scheme, every child born in govt hospitals to families permanently residing in Tamil Nadu will receive a one gram gold ring.

The Tamil Nadu government has allocated Rs 44,527 crore to the School Education Department in the Budget. Of this, Rs 2,000 crore has been earmarked for the Vetri Laptop Scheme for college students, Finance Minister N Marie Wilson announced.

The Tamil Nadu government has announced the 'Puthiya Payanam Puthiya Vegam scheme', under which 5.32 lakh Class 11 students will receive bicycles equipped with helmets and water bottles. The scheme has been allocated Rs 277 crore in the State Budget, Finance Minister N Marie Wilson said.

Finance Minister Marie Wilson is presenting the first Budget of the TVK government, outlining its fiscal roadmap and key policy initiatives for 2026-27. So far, the government has projected Rs 16,000 crore in additional revenue, including Rs 1,000 crore from a liquor production cess, and announced Rs 129 crore for the 'Super Clean, Super Campus' scheme in 10,000 government schools. It has also announced constitution of a Revenue Enhancement Committee.

The Tamil Nadu government has announced a modernisation programme for 3,734 government schools at an estimated cost of Rs 2,132 crore. An allocation of Rs 300 crore has been made for the project in the current financial year

The Tamil Nadu government has allocated Rs 25 crore for the restructuring and modernisation of the State school curriculum

Finance Minister announced that the government will soon constitute a Revenue Enhancement Committee to identify measures for increasing the State's revenue.

Rs 129 crore allocated for 'Super Clean, Super Campus' scheme in 10,000 government schools

Tamil Nadu expects ₹1,000 crore from liquor production cess, ₹15,000 crore through revenue measures; Revenue Enhancement Committee to be set up, says Finance Minister Marie Wilson

Finance Minister N Marie Wilson announced that the Thaimaman Seer Thittam will be launched on September 15, the birth anniversary of former Chief Minister CN Annadurai.

Modern residential schools for Classes 9-12 to be set up; free uniforms and textbooks to be provided for them, says Minister Marie Wilson

Under 'Super CM', TVK government to roll out 'Super Campus' and 'Super Safety' initiatives

The Tamil Nadu government has reaffirmed its goal of transforming the state into a $1.5 trillion economy by 2036, outlining the vision as a key long-term economic objective in the Budget. - Finance Minister Marie Wilson

TVK government will not allow public money to be looted: Finance Minister Marie Wilson reiterates anti-corruption stand

Finance Minister N Marie Wilson quoted the Thirukkural, "Pirappokkum Ella Uyirkkum Sirappovvaa Seithozhil Vettrumaiyaan" ("Birth is common to all living beings; distinction arises only from the different work they perform.") , at the start of his maiden Budget speech in the Tamil Nadu Assembly.

Finance Minister N Marie Wilson began presenting the State Budget by paying tribute to the ideological leaders of the party before commencing her maiden Budget speech.

Ahead of the Assembly elections, the TVK had made several key promises, including a monthly financial assistance of Rs 2,500 for women heads of families until the age of 60 under the Madhippumikku Magalir Thittam and an unemployment allowance for jobless youth.

The TVK-led government’s first State Budget, which would be presented on Wednesday (August 5), would feature several major announcements across sectors, with a special focus on youth, Minister Aadhav Arjuna said.

The budget would be transformative, carrying announcements aimed at long-term planning for the next 50 years, he said. "The budget will not be a repetition of the previous years. Every department will present announcements with a new purpose and direction, because we are planning for the next 50 years, not just the next election."

Setting the stage for a fiery beginning for the Budget session of the Assembly on Wednesday, the police on Tuesday arrested opposition leader Udhayanidhi Stalin of the DMK on charges of making derogatory comment against actor Trisha Krishnan and Chief Minister C Joseph Vijay during his speech at a protest over Cauvery water sharing in Thanjavur a day earlier. Udhayanidhi was released on station bail later in the day, as directed by the Madras High Court based on Advocate General Vijay Narayan’s submission that the State government had no intention to seek his judicial remand.

“Our Assembly strategy will be finalised on Wednesday morning. But we will raise the issue of his arrest vigorously in the House," said a DMK leader.

The government is preparing the Budget amid severe financial constraints and limited fiscal space. Owing to the shortage of funds, it has so far refrained from announcing major welfare schemes, except for the Thaimaman Thanga Modhiram Scheme (Gold Ring scheme).

Tamil Nadu is likely to become the second State in the country, after Odisha, to introduce a dedicated Climate Budget, with the State government expected to earmark up to Rs 3,000 crore for climate change mitigation and adaptation measures in the Budget to be presented on Wednesday.

A significant portion of the allocation is likely to be utilised for tackling coastal erosion across Tamil Nadu's 14 coastal districts, besides supporting compensation and rehabilitation measures for fishing communities affected by sea erosion and extreme weather events.

Sources added that the proposed fund could also be used for the restoration and ecological rejuvenation of the Pallikaranai marshland, one of the State's most critical wetlands,