Tamilnadu Revised Budget 2026 - Part II

Present Budget Announcements

Education

• The budget highlighted allocation of ₹2,000 crore for the “Vetri Laptop Scheme” for college students.
• It also announced the setting up of Tamil Nadu Student Housing and Infrastructure Corporation to build 200 integrated students’ hostels with one lakh beds through a Public-Private Partnership model.
• The Tamil Nadu School Programme for Artificial Intelligence, Robotics and Knowledge of Online Tools (TN SPARK) will be expanded from the existing 5,000 government schools to an additional 2,600 schools during 2026-27.
• Under the revised three-tier framework, students of Classes VI to VIII will learn the fundamentals of emerging technologies, Classes IX and X will receive intermediate-level training, and Classes XI and XII will be offered specialized elective courses.
• To reduce dependence on petroleum-based products and curb environmental pollution, the State government will train mechanics currently servicing fossil fuel-powered vehicles in the maintenance of electric vehicles and batteries.
• The government will introduce a new Artificial Intelligence and Machine Learning trade in Government Industrial Training Institutes (ITIs).
• The State government will introduce a ‘Super Clean, Super Campus’ scheme.
• Under which daily cleaning, maintenance of drinking water facilities and toilets, and round-the-clock security will be ensured on 10,000 school campuses in the first phase.
• To modernise government schools, the State government will launch the ‘Palli Niraivu Thittam’, covering 3,734 schools, including 2,514 primary schools, 365 middle schools, and 855 high and higher secondary schools at a cost of ₹2,132 crore.
• To provide quality education to academically talented students from socio-economically disadvantaged backgrounds, the government will establish ‘Perunthalaivar Kamarajar Schools of Excellence’ as modern residential schools for Classes IX to XII, offering free education, food, boarding, textbooks, and uniforms.
• The State government will also redesign public libraries into Statewide digital learning and innovation hubs with digital knowledge resources, universal membership, 24x7 internet and mobile access, digital content, free Wi-Fi, and co-working spaces across the 38 district central libraries.
• The Tamil Nadu government will establish a specialised Government Law College in Madurai.

Drug Issue

• As part of its commitment to a drug-free Tamil Nadu, the government will establish Anti-Drug Clubs and student volunteer groups in schools.
• The ‘10581’ helpline number will be displayed on all school campuses.
• The ‘Drug-Free Tamil Nadu’ mobile application will enable students and teachers to confidentially report drug trafficking and substance abuse.
• A total of 65 Special Task force for Interdiction of Narcotics and Gangs (STING) units have been formed to detect drug-related offences.
• To ensure a drug-free Tamil Nadu, this Government will establish a 'Rehabilitation Fund'.

Skill Development

• The State government will launch the ‘Vetri Skill Training Scheme’ to provide industry-aligned skill training to 12 lakh college students and one lakh unemployed youth this year.
• An internship programmes in collaboration with government and private industries will be provided to 20,000 youth in the first phase, with graduates and vocational education holders receiving a monthly stipend.

AI

• The government has announced the setting up of an AI and innovation city called ‘Arivagam’ where AI companies, startups, Global Capability Centres (GCC), and other research institutions.
• It will be India’s first dedicated AI and innovation city for artificial intelligence and deep-tech development, with facilities including an AI university, an international skill development center, a semiconductor hardware testing lab, multi-domain innovation incubators, and modern residential infrastructure.
• The Tamil Nadu Artificial Intelligence Mission (TN AI Mission) will be strengthened to encompass emerging technologies such as Artificial Intelligence, Quantum Technology, Animation, Visual Effects, Gaming and Comics, and Extended Reality (AVGC-XR), with a specialised focus on AI applications in health, agriculture, education, citizen services, urban administration, social welfare administration, and other needy departments.
• Through the Tamil Virtual Academy, a Tamil Large Language Model (Tamil LLM) will be developed.

Industry

• The State government will strive to establish more Multi Modal Logistics Parks (MMLPs) and Dry Ports at strategic locations, establish petrochemical and ancillary industries, and explore the possibility of setting up new ports in Tamil Nadu.
• Thoothukudi and Tirunelveli will be declared a ‘Space Industrial Investment Zone’, anchored by the strategic significance of the spaceport at Kulasekarapattinam. 
• To provide unparalleled infrastructure and technological support to private enterprises, startups and research organisations within this zone, the State Government, in collaboration with IN-SPACe, is establishing an advanced 'Space Vehicle Common Technical Facility'.
• To promote environmentally sustainable steel production and mitigate the environmental impact of steel rolling mills, the 'Green Steel Production Initiative' will be implemented.
• Artisan communities and talented students in rural areas across Tamil Nadu also face significant challenges in accessing premier national-level design institutions, owing to limited opportunities, financial constraints, and lack of access to specialised educational avenues.
• To bridge these gaps, with the active participation of industry and academia, the 'Tamil Nadu Institute of Design' will be established as an institution of State importance.
• A new Tamil Nadu Industrial Policy will be released to strengthen the State’s industrial and economic growth.
• The policy will foster innovation and technology-driven growth, support emerging industry sectors, drive sustainable development, and export promotion.
• The State government will also create the Tamil Nadu Industrial Capability Directory, a comprehensive digital platform listing the State’s manufacturing and supply capabilities.
• To enhance Tamil Nadu’s competitiveness, the State will introduce an AI-powered investment service system called ‘Guidance 3.0’, making all requisite information, clearances, and services available on a single platform for investors.
• As part of this initiative, the ‘Tamil Nadu Single Window Portal 3.0’ will be upgraded to enable all statutory approvals, clearances, and no-objection certificates required for establishing industries and investment projects to be obtained through a unified interface.
• To ensure balanced and equitable industrial development across all regions of Tamil Nadu, SIPCOT will establish new industrial parks in industrially backward districts based on district-specific industrial development plans and sectoral strengths.
• A Tiruppur Textiles Technology Centre (TTTC) will be established.
• Granite polishing and design centres will be established in Pudukkottai and Perambalur districts to develop the granite industry in the region.

Governance

• The 'Namma Arasu' WhatsApp Chatbot, which currently provides 76 services across 20 departments, will be expanded to include 275 public welfare services.
• A new 'Road Safety Policy' will be formulated, focusing on five key pillars: institutional framework, road design and engineering, traffic law enforcement, emergency trauma care, and education.

Social Welfare

• The Tamil Nadu government will present an eight-gram (one-sovereign) gold coin and a silk saree as ‘Annan Seer’ (Elder Brother’s Gift) to eligible women on the day of their wedding.
• An allocation of ₹812 crore has been made in the Revised Budget Estimates for the scheme.
• An integrated home for senior citizens, equipped with essential amenities including qualified caregivers, medical personnel, and recreational facilities, will be established across all districts.
• In the first year, 12 such homes will be set up in 12 districts, each accommodating 40 beneficiaries, with an allocation of ₹6.6 crore.
• Additionally, senior citizens’ recreation centres featuring libraries, yoga and meditation facilities, and indoor sports amenities will be established in five districts in the initial phase, selected on the basis of the population of senior citizens.
• The government will establish ‘Aran’ shelter homes in five districts to provide safe accommodation, food, counselling, and rehabilitation support to transgender persons facing social and family-related challenges.
• In addition, short-stay homes will be established in 15 districts to meet the needs of transgender persons travelling to other cities for education, employment, medical treatment, examinations, and training programmes.
• The ‘Nambikkai Illam’ initiative will be a model one stop centre where all facilities and training for persons with intellectual disabilities will be provided
• Such a centre for persons with intellectual disabilities, will be coming up on the Girivalam path near Arunachaleswarar temple in Tiruvannamalai town.
• Officials of Welfare of Differently Abled Persons Department will maintain the facility.
• Under ‘Nambikkai Illam’ initiative, similar centres would be set up in Thanjavur, Salem, Cuddalore, and Virudhunagar districts.
• Besides, a ‘Non-Resident Tamil Investment Facilitation Desk’ will be established within Guidance to facilitate and promote investment by the global Tamil diaspora in the State.
• The government will construct 500 Anganwadi centres during the current financial year, ensuring the provision of essential basic amenities such as safe drinking water, toilets, and electricity.
• The initiative aims to ensure that the Anganwadi centres attended by children every day provide quality early childhood care and a safe and healthy environment.

Health

• Tamil Nadu has increased its healthcare spending by about 6.6% this year allocating ₹23,357 crore.
• The announcements for the health sector include 1,000 Mobile Geriatric Treatment Centres, maternity care and support centres and a Hub-and-Spoke medical system for cancer care.
• The government went ahead and allocated ₹560 crore in the Revised Budget Estimates for its “Thai Maaman Thanga Mothiram Thittam,” in which every newborn delivered in a government hospital will receive a one-gram gold ring.
• It will also set up “Thai Care”, maternity care and support centres for pregnant women.
• They can stay at these centres to receive care as their delivery date approaches.
• The centres will offer free meals, medical support, and continuous health monitoring.
• The government allocated ₹18.5 crore for a telemedicine system based on a “Hub-and-Spoke” hospital model to ensure access to specialized medical care for people in remote and rural areas.
• The government will establish a “Hub-and-Spoke” medical system for cancer care.
• Five zonal cancer care hospitals will be established as primary points of contact for patients and will also undertake research and development activities in cancer care.
• The government allocated ₹33 crore for establishing mobile geriatric centres for senior citizens.
• To be introduced in phases across the State, each centre will have a team comprising a doctor, a nurse and a physiotherapist.
• They will visit every village panchayat to conduct free health check-ups and provide medicines for chronic conditions.

Urban Development

• The Chennai Metropolitan Development Authority (CMDA) was preparing the Third Master Plan (2027-2046) for the existing Chennai Metropolitan Area (CMA) covering 1,189 sq. km., the Budget mentioned.
• A Comprehensive Master Plan would be prepared for the expanded CMA covering 5,904 sq. km.
• An AI-enabled online planning approval system, Single Platform for Efficient Expedited Development (SPEED), will now be introduced.
• The TNUHDB will also launch the Metropolitan Youth and Family Housing Scheme (MY-HOME) as a pilot initiative in the Chennai Metropolitan Area (CMA).
• Under the scheme, one lakh housing units will be developed over the next seven years through public-private partnership model.
• The scheme would introduce a Digital Rental Voucher system to provide safe and affordable housing for low-income families and youth, while contributing to the long-term transformation of the Chennai Metropolitan Area.
• The 'Chief Minister’s Integrated Urban Development Mission', will be bringing under one roof urban infrastructure, water supply, underground sewerage systems, integrated solid waste management, city roads, urban transport, expansion of green spaces, protection of urban water bodies, social infrastructure, the safety of women and children, AI-driven e-governance, and a dedicated Urban Public Health Improvement Mission, with the objective of addressing gaps in urban infrastructure and delivering a visibly better quality of life to every citizen of our urban local bodies.
• By 2031, this Mission will reshape the urban landscape, character and functioning of Tamil Nadu's cities, positioning the State as a national role model in urban governance.
• The Ring Main Pipeline system, connecting all major drinking water sources in Chennai with drinking water distribution stations, is being undertaken.
• The inadequately maintained roads will be taken up under the 'Performance Based Maintenance Contract'.
• Members of the public may photograph and report any road defects through the 'Namma Salai' mobile application, and such defects will be rectified promptly.

Housing

• The Government is launching a new State Housing Scheme named the 'Vetri Veedu Thittam' exclusively for Kutcha Hut dwelling families.
• The Government has therefore decided to increase the unit cost from Rs.3.1 lakh to Rs.5 lakh for construction of Pucca houses to those living in Kutcha huts under this new scheme.
• In the first year, 70,000 houses will be sanctioned at an estimated cost of Rs.3,500 crore.
• The Rural Development Department will conduct a fresh door-to-door survey to identify eligible households.

Rural Development

• The Government is integrating all infrastructure schemes of the Department into a comprehensive scheme, the 'Tamil Nadu Village Empowerment, Transformation, Rejuvenation Initiative' (TN-VETRI).
• It will include separate sub-missions for Water Supply, Solid Waste Management, Sanitation and Rural Connectivity.
• To fulfil the Government's policy of providing 150 days of employment under the guaranteed rural employment scheme, the Government will implement an initiative named 'Vetri 150'.
• It aims to vulnerable and needy households who complete 125 days of employment, thereby ensuring 150 days of work for these households.
• The 'Tamil Nadu Palmyra Development Corporation' will be established with an allocation of Rs.16 crore this financial year.
• This fund will support initiatives such as neera processing, palm jaggery production, and the export of value-added palm products, protecting the livelihood of farmers who cultivate Palmyra, the State Tree of Tamil Nadu.
• Under the ‘Vetri Magalir Goat Rearing Scheme’, five goats or sheep will be provided with a 100% subsidy to destitute widows, deserted women, transgender persons, and persons with disabilities living in rural areas.
• It is benefiting about 30,000 eligible persons at a cost of ₹110 crore.
• The State government will introduce a new livestock insurance scheme named ‘Kaalnadaigal Kaappom’ to provide financial protection against the loss of livestock due to unforeseen mortality, disease or disaster.

Women Empowerment

• The Government will therefore launch a new scheme, the 'Singappenngal Valimaippaduthum Thittam'.
• Under that scheme, an investment subsidy of Rs.5 lakh will be extended to every SHG enterprise that demonstrates sustainable entrepreneurial performance.

Environment

• Under the TN-SHORE project, the State government is set to undertake the initiative of mangrove afforestation and restoration of degraded mangrove forests in Kanniyakumari.
• The project would be implemented over 2,500 hectares in Cuddalore, Villupuram, Chengalpattu, Mayiladuthurai, Nagapattinam, Tiruvarur, Thanjavur and Kanniyakumari districts.
• In Kanniyakumari district, mangrove forests are primarily found in Manakudy and Rajakkamangalam.
• The mangrove ecosystem at Manakudy estuary is a vital ecological habitat.
• A new 'Rooftop Solar Subsidy Scheme' will be introduced in convergence with the 'Pradhan Mantri Surya Ghar Muft Bijli Yojana'.
• The Government will launch 'Tamil Nadu Eco-Tourism Mission' to develop and expand nature-based tourism circuits and destinations, including trekking routes, wildlife safaris, birding and boating trails, eco-friendly stays, and interpretation and visitor centres.

Water Conservation

• The Cauvery - Vaigai - Gundar river linking project would commence this year with an initial fund allocation of ₹150 crore.
• It would also allocate ₹50 crore towards preparing detailed project reports for other river linking projects, including Pennaiyar - Cheyyar.
• It also promises restoration of the Cooum and the Adyar rivers in Chennai on the lines of Seoul’s Cheonggyecheon and Singapore’s Kallang.

Infrastructure

• The State government is pursuing a proposal for a Metro rail line from Hosur in Krishnagiri district to Bommasandra in Karnataka with both the Karnataka government and the Union government.
• The government would establish the Tamil Nadu Student Housing and Infrastructure Corporation (TNSHIC), a dedicated Special Purpose Vehicle, with an initial equity infusion of ₹10 crore.
• Under the flagship TN-SUDAR (Tamil Nadu State Upgradation, Development and Advancement of Student Residences) initiative, the government will construct 200 integrated student hostels providing one lakh modern hostel beds across major educational hubs in the State.

Social Justice

• The State government will implement the ‘Iyothee Thass Pandithar Habitation Development Scheme’ to ensure comprehensive socio-economic development in urban and rural Adi Dravidar habitations.
• It will be upgrading basic infrastructure and improving living standards at a cost of ₹300 crore.
• It said ‘Mannin Magal Thittam’ will be implemented to help Adi Dravidar and tribal women agricultural labourers become landowners.
• Beneficiaries will also be trained in modern agricultural technologies to adopt advanced farming practices and improve productivity.
• Under the ‘Annal Ambedkar Overseas Higher Education Scholarship Scheme’ for students pursuing higher education in renowned international universities, a maximum of ₹36 lakh per student will be provided.
• It also said the ‘Vetri Entrepreneur Scheme’ will be implemented to ensure sustainable development and improve the livelihoods of Adi Dravidar and Tribal people by providing capital subsidy and interest subvention.
• Under the ‘Annal Ambedkar Business Champions Scheme’, loans and capital subsidy will be provided to encourage entrepreneurship among Adi Dravidar and tribal people, ensuring their economic development and self-sufficiency.
• The ‘Aandror Membattu Thittam’ will be implemented to improve basic amenities in tribal habitations, including houses, roads, drinking water, streetlights, livelihood schemes, health infrastructure, education-related scholarship schemes, and school and hostel improvement works.
• This Government will introduce a ‘Folk Artists Livelihood Protection Scheme’.
• Under that, 200 best-performing art troupes registered with the Folk Artists Welfare Board will be selected each year, providing them opportunities to perform for 82 100 days.