The Finance Minister of Tamil Nadu, Thangam Thennarasu presented the much-anticipated MK Stalin government’s Budget for FY25-26 in the legislative assembly. The Budget comes amid a highly fueled political atmosphere in the state, with tensions spreading over the central government’s 3 Language formula and delimitation policies.

Amid the uproar, the major party AIADMK and union-level party BJP walked out from the stage, citing a suspected scam in state-owned liquor corporation TASMAC as ED inspections emerged.

Despite the noisy chaos in assembly, the state government announced ground breaking initiatives, marking crucial movement in Tamil Nadu’s financial roadmap.

Let’s take a concise glimpse into the highlights of Tamil Nadu Budget 2025

Eye-turning Initiatives

•     Over the 2 years, 20 lakh college students to receive laptops or tablets based on their preferences.
•     1% less stamp duty (up to Rs. 10 lakh) for properties registered under women’s names.
•     From 2026, employees can get cash cheques for up to 15 days of earned leave.
•     Aiding for education, Rs. 2,000 monthly stipend for children who lost both parents.

Financial Developments

•     Debt-to-GSDP ratio to drop to 26.07% of the GSDP in FY25-26.
•     The fiscal deficit was reduced to 3.26% in revised estimates.
•     Revenue Deficit projected to shrink to 1.17% in FY26.
•     State-own tax revenue budgeted to rise at 14.6% growth in FY25-26.
•     The state anticipates a total estimated revenue of Rs.2, 20,895 crore for FY25-26.

Infrastructure & Urban Development

•     Rs. 310 crore was allocated for a new flyover of over 3 kilometers in Velachery to ease traffic congestion.
•     Rs. 1500 crore for the Adyar River Restoration program which is started earlier and nearing its completion in 15 months.
•     A Brand new city spanning over 2000 acres near Chennai is to be developed soon.
•     Over 6,100 km of rural roads are to be revamped to better quality with Rs. 2, 200 crore in FY26.
•     Rs. 1,000 crore was allotted to improve the infrastructure of government schools.

Transportation and Tourism

•     Porur Metro line is set to welcome the public by December 2025.
•     The New Airport in Ramanadhapuram gets a green signal to cater to the burgeoning tourism in the region.
•     Rs. 70 crore to makeover Diesel buses for CNG upgrades.

Housing and Social Welfare

•     Kalaignar Housing Scheme announced at Rs.3, 500 crore to construct 1 lakh houses for the underprivileged.
•     Free Bus ride scheme for women subsidized with Rs. 3,600 crore in FY25.
•     ‘Anbucholai’ old-age homes for Rs. 10 crore in 10 key cities. (Madurai, Coimbatore, Trichy, Salem, Tiruppur, Erode, Thoothukudi, Vellore, Thanjavur, and Dindigul).

Archaeological & Cultural Development

•     Archaeological excavations in selected 8 locations in the state including Keeladi (Sivaganga), Telunganur (Salem), Adhichanur (Kallakurichi).
•     Over Rs. 26, 000 crore allotted for drinking water projects across diverse locations including Erode, Mayiladthurai, Thiruvallur and other districts of TN.

Education & Workforce Safety

•     Group insurance scheme to be introduced for 1.50 lakh workers in Tamil Nadu.
•     Rs. 275 crore sanctioned for student hostels in Madurai, Chennai, & Coimbatore to aid 1,000 students.