Ahead of state assembly elections, Tamil Nadu Finance Minister Thangam Thenarasu on Tuesday presented the Interim Budget for 2026-27, launching a sharp criticism against the Centre over delaying finances and putting stress on the state.
The minister said that the Centre is trying to create artificial crisis for Tamil Nadu finances by denying schemes and putting funds on hold.
He added that the state government is continuously urging the Centre to reconsider and accord sanction for Metro Rail projects in Coimbatore and Madurai.
The Tamil Nadu government has granted approval for new Metro Rail routes around Chennai and recommended to Centre's approval and funds, he said.
Thenarasu, who said the state is the second biggest economy in country, thanked Chief Minister MK Stalin for guiding double digit growth. He underscored inclusive economic growth, saying "we have started final war to end poverty".
As per the State Economic Survey released ahead of the interim budget for 2026-27, the state’s spending on social sector programmes increased from Rs 1.13 lakh crore (2021-22) to Rs 1.57 lakh crore (2025-26), registering an average annual growth of 8.72%.
Due to pioneering initiatives, the state achieved a double-digit growth of 11.19 per cent in 2024-25, ranking first in the country, the minister said. The capital city Chennai, with more than 250 Global Capability Centres, has emerged as one of India's leading hubs, he added.
The minister listed flagship schemes of the government and underscored women-welfare centric schemes such as 'Thozhi Viduthi'. He added that Tamil Nadu was frozen in a sweet shock when the government credited Rs 5,000 to 1.31 crore women beneficiaries under rights grant.
Ahead of the election, Chief Minister MK Stalin had announced a Rs 6,550 crore bonanza for women heads of families under the Kalaignar Magalir Urimai Thogai Thittam. Consequently, 1.31 crore women in Tamil Nadu received Rs 5,000 in advance on February 13. This includes a monthly honorarium of Rs 1,000 for three months - February, March and April and a special summer package of Rs 2,000.
Thenarasu also stressed on the fare-free bus travel scheme for women, saying that women beneficiaries availing fare-free bus travel save on an average Rs 888 per month. Women beneficiaries have travelled 881 crore times under the scheme, he said.
He also said, "We have achieved proud distinction of accounting for 41 per cent of all women employed in factories across country."
Thenarasu also emphasised on the government's laptop scheme for college students and said 6,75,888 students have benefited from the scheme so far.
He also added that the government bears fee and food expenses of 54,301 students admitted to professional courses under reservation for government school students.
On the developmental front, the minister said, the government has completed 1,71,000 houses under Kalaignar housing scheme, with construction underway for additional 29,000 houses.
He added that the state government is continuously urging the Centre to reconsider and accord sanction for Metro Rail projects in Coimbatore and Madurai. He also promised that the Poonamallee-Porur-Vadapalani Metrorail route in Chennai will soon be operational.
The minister also emphasised on the state's Climate Change Mission, adding that Tamil Nadu is ranked first in Climate Action category in NITI Aayog SDG India Index 2023-24.
Key budget announcements so far:
Rs 48,534 crore allocated for School Education Department
Rs 13,062 crore allotted for transport department
Department for Welfare of Differently Abled Persons gets Rs 1,471 crore in interim budget allocation
Rs 5,463 crore allotted in Interim Budget for social security schemes
Interim Budget allots Rs 28,687 crore to Rural Development, Panchayat Raj Department
Rs 18,091 crore allotted to the Energy Department with focus on new renewable energy policy
MSME Department receives Rs 1,943 crore allocation in the interim budget
Government undertaking mangrove restoration across 3,733 hectares under Neithal Restoration Movement
Interim budget allocates Rs 1,943 crore for handloom and textile sector including Rs 600 crore for free dhoti-saree scheme.
Earmarks Rs 4,282 crore for the industries and investment promotion department in the interim budget
Rs 500-crore for Tamil Nadu Semiconductor Mission-2030 with work on to establish a Centre for Advanced Semiconductor Technologies in collaboration with IIT-Madras
A shipbuilding cluster at Thoothukudi at an estimated cost of Rs 5,200-crore
This is a developing story.
(With inputs from PTI)