Tamil Nadu Budget 2026–27 - Key Highlights

Budget Overview & Fiscal Position

• Tamil Nadu Finance Minister N. Marie Wilson presented the TVK-led government’s first Budget for 2026–27 in the Legislative Assembly on 5 August 2026.
• The Budget focused on women, students, youth, senior citizens, healthcare, education, industries, infrastructure, Artificial Intelligence (AI), and welfare schemes.
• Tamil Nadu’s State Own Tax Revenue (SOTR) is projected to grow by 9.78%.
• The state’s outstanding debt is estimated at ₹10.99 lakh crore.
• ₹708 crore allocated for renovation works, consecration of 3,000 temples, and restoration of 84 temple cars.

Education, Youth & Skill Development

• Vetri Laptop Scheme received ₹2,000 crore for providing laptops to students.
• Puthiya Payanam, Puthiya Vegam scheme will provide bicycles with helmets and water bottles to 5.3 lakh Class XI students with ₹277 crore allocation.
• Perunthalaivar Kamarajar Model Schools will provide free education, food, accommodation, uniforms, books, and healthcare with ₹125 crore allocation.
• Super Clean, Super Campus Scheme will improve cleanliness, drinking water, toilets, and security facilities in 10,000 schools with ₹139 crore allocation.
• School Education Department received ₹44,527 crore, while Higher Education Department received ₹8,393 crore.
• Vetrithiran Training Scheme received ₹150 crore for skill training, employment opportunities for 1 lakh job seekers, and youth internships.
• Five new Industrial Training Institutes (ITIs) will be established with ₹90 crore, and 10 Olympic Centres of Excellence will be created with ₹50 crore.
• Student Hostels and Infrastructure Corporation will develop 200 hostels with 1 lakh accommodation facilities.
• Welfare Schemes, Women & Social Justice
• Annan Seer Thittam will provide eligible brides with an 8-gram (one-sovereign) gold coin and silk saree with ₹812 crore allocation.
• Thai Maaman Thanga Mothiram Thittam will provide a 1-gram gold ring for every child born in government hospitals with ₹560 crore allocation.
• Thai Care Centres will support pregnant women through food, medical care, and health monitoring with ₹23 crore allocation.
• Vetri Veedu Thittam will provide houses for families living in kutcha huts.
• Aran shelter homes will support transgender persons in five districts.
• Nambikkai Illam centres will be established for children with intellectual disabilities with ₹4 crore allocation.
• Haj subsidy increased from ₹25,000 to ₹35,000.
• Differently-abled Welfare Department received ₹1,485 crore.

Technology, Industry & Infrastructure Development

• Arivagam, India’s first Artificial Intelligence (AI) and Innovation City, will include an AI university, semiconductor testing lab, skill centre, and innovation hubs; feasibility study with ₹5 crore allocation.
• Tamil Nadu AI Mission will introduce AI-based services in healthcare, agriculture, education, and citizen services.
• Tamil Nadu Institute of Design will be established with ₹60 crore to support artisans and design education.
• A Space Industrial Investment Zone will be created in Tirunelveli and Thoothukudi near the Kulasekarapattinam spaceport.
• 1,000 electric air-conditioned MTC buses will be purchased with ₹500 crore allocation.
• 20,000 Electric Vehicle (EV) charging stations will be developed in five years with ₹50 crore allocation.
• Coimbatore–Ariyalur 765 Kilovolt (kV) transmission line project will be implemented through Public-Private Partnership (PPP) at an estimated cost of ₹4,000 crore.
• Third Chennai Master Plan (2027–2046) will be prepared with ₹25 crore allocation.

Energy, Environment & Natural Resource Conservation

• Rooftop Solar Subsidy Scheme will provide up to ₹1 lakh subsidy for domestic consumers installing solar panels.
• Smart meters will be installed for Chennai consumers and 50 lakh industrial and commercial consumers across Tamil Nadu.
• TN-SHORE Project will restore mangroves across 2,500 hectares with ₹322 crore allocation.
• Human–wildlife conflict mitigation programme will cover 100 villages with ₹20 crore allocation.
• Tamil Nadu Palmyra Development Corporation will be established with ₹16 crore to promote palm-based products.

Agriculture, Fisheries, Healthcare & Rural Development

• Cauvery–Vaigai–Gundar River Linking Project will begin with an initial allocation of ₹150 crore.
• Traditional fishermen will receive increased lean-period assistance of ₹7,000 per family, benefiting 1.93 lakh families with ₹135 crore allocation.
• Mannin Magal Scheme received ₹20 crore to help Adi Dravidar and Tribal agricultural labourers become landowners.
• Ayothidas Pandithar Habitat Development Scheme received ₹300 crore for Adi Dravidar habitations.
• Aandror Development Scheme received ₹250 crore for tribal habitations.
• Mobile Geriatric Treatment Centres will provide free health check-ups and medicines for senior citizens with ₹33 crore allocation.