The Tamil Nadu government, led by Chief Minister MK Stalin, unveiled its 2025-26 Budget on Friday, focusing on welfare schemes, infrastructure development and job creation ahead of the state elections next year. The budget, presented by Finance Minister Thangam Thennarasu, outlined key initiatives aimed at women’s empowerment, public transport, education and urban development. However, opposition AIADMK staged a walkout over alleged corruption in TASMAC, the state-run liquor corporation.
Key Announcements In Tamil Nadu Budget 2025-26
- Fare-Free Bus Travel For Women
The government has allocated Rs 3,600 crore for the fare-free bus travel scheme for women, which has seen increased participation. Minister Thennarasu noted that the scheme’s usage has risen from 40% to 65% with an average of 50 lakh women commuting daily. A State Planning Commission study revealed that women save an average of Rs 888 per month due to the initiative. - Job Creation and Employment Boost
The government announced plans to fill 40,000 positions in the current financial year, addressing unemployment and strengthening public sector employment. - Women-Centric Financial Benefits
A 1% reduction in registration fees for immovable assets (houses, plots, agricultural lands) valued up to Rs 10 lakh, when registered in women’s names, effective April 1, 2025. A new scheme to provide bank loans of up to Rs 10 lakh with a 20% government subsidy, to promote women entrepreneurship, benefiting one lakh women.
- Education and Technology Push
Rs 2,000 crore allocated for providing tablets or laptops to 20 lakh college students over the next two years.
- Major Infrastructure Developments
New Airport in Rameswaram to boost tourism and connectivity. Expedited work on the proposed airport at Parandur, near Chennai.
Plans to develop a satellite city near Chennai, offering world-class amenities. - Relief for Government EmployeesRestoration of the Earned Leave Surrender System, allowing government employees to encash leave, improving work-life balance.
AIADMK Walks Out
The budget session witnessed a dramatic moment as the AIADMK opposition, led by Edappadi K Palaniswami, staged a walkout, accusing the DMK government of corruption in TASMAC. The walkout was prompted by recent Enforcement Directorate (ED) raids, which uncovered a reported Rs 1,000 crore scam in the state-run liquor corporation. Palaniswami demanded that the government take moral responsibility and resign over the scandal.
Finance Minister’s Marathon Budget Speech
Finance Minister Thangam Thennarasu delivered a 2-hour 38-minute budget speech, outlining the government’s vision for inclusive growth and development. The budget emphasised social welfare, economic empowerment, and infrastructure expansion, particularly for women and youth.
With the Tamil Nadu elections approaching, the 2025-26 Budget is seen as a crucial policy move aimed at winning voter confidence through welfare and employment-driven programs. While the opposition’s corruption allegations cast a shadow over the session, the government remains committed to its development agenda, setting the stage for an intense political battle in the months ahead.
