Transcription
Tamil Nadu Finance Minister Tangam Tanru presented the last full-fledged budget of the DMK government before the assembly elections in 2026 in the Assembly Hall of the fourth St George in Chennai on March 14th. The government blended welfare schemes with infrastructure projects and also increased allocations for ongoing schemes.
The budget picks Tamil Nadu's nominal GSDP at 14.5% in 2024-2025 with real growth projected at 9% with an average inflation of 5.5%. In his speech, the state finance minister said that Tamil Nadu's GSDP growth is projected at 15% per annum for 2026-27 and 2027-28.
The fiscal deficit for FY26 is estimated at 1 lakh 6,936 crore rupees, that's 3% of the GSDP. The total revenue expenditure is estimated at 3 lakh 73,004 crore rupees, while the total revenue receipts are projected at 3 lakh 31,516.9 crore rupees. In 2025-26, the state's own revenues constitute 75.3% of the total revenue receipts. Commercial taxes, stamp and registration, state excise duties, and motor vehicle taxes are major components of the state's own revenue. The balance comes from the central government in the form of central taxes and grants-in-aid.
Salaries, pensions, capital expenditure, interest payments, and loan repayments form the majority of expenses for the Tamil Nadu government. The Tamil Nadu government proposed a total expenditure of 4 lakh 39,219.3 crore rupees in 2025-2026, which is up 9.5% over 2024-2025.
Welfare schemes receive most of the funding. Education, urban and rural development, health, and infrastructure received significant allocation from the government. The budget also focused on developing the Tamil language. The government allocated funds to translate the Thirukkural and build a museum of languages in Madurai. The government announced plans to set up libraries in several districts. It also announced several schemes for higher education and school education.
In the budget, the government announced that they will set up a new Global City near Chennai. The budget had several schemes for industries in the state. The government allocated 500 crore rupees to implement the Tamil Nadu Semiconductor Mission. The government also announced plans to set up semiconductor manufacturing parks in Coimbatore and Tiruppur.
The government also announced that it would introduce the Tamil Nadu Maritime Transport Manufacturing Policy 2025. It also announced the creation of a Space Tech Fund to encourage space tech startups. It also had schemes for gig workers. The budget had several schemes for transportation. Also, water resource management and rural development were also on the agenda in this budget.
The government announced that the Tamil Nadu State Institute of Disaster Management will be set up in Chennai. It also announced several schemes to tackle climate change. The budget also made announcements for senior citizens and persons with disabilities.