CHENNAI: Amid language war with the centre and with just a year left for the Tamil Nadu Assembly poll, the DMK government’s last full-budget stayed true to its theme of ‘everything for everyone’ and gave the pride of place for Tamil.
The ruling DMK has resisted the temptation to go for big-bang announcements, perhaps constrained by its financial situation, and appears to have gone for targeted interventions in key sectors while maintaining the existing allocations for its flagship social-security measures.
An exception was the allocation of Rs 2,000 crore for 2025-26 to revive the free distribution of laptops to students, a flagship scheme of the previous AIADMK government, which had been stopped for the past five years. Finance Minister Thangam Thennarasu, who presented the budget on Friday, said 20 lakh students of government-run institutions will either get a tablet or a laptop in the next two years. It is hard to miss the political significance as the targeted beneficiaries are likely to be first-time voters in the 2026 polls.
To showcase the excellence of Tamil culture to the world, new archaeological excavations in eight locations, Indus Valley Cultural Gallery in Chennai, Agaram - Museum of Languages in Madurai, World Tamil Olympiad competition every year, and deep-sea excavations along coastal Tamil Nadu have been proposed in the budget.
The financial statement accorded particular focus to industries and higher education with the allocation for the former going up by 70%. A Rs 500-crore Semiconductor Mission-2030 and industrial parks in Tiruchy, Madurai, Pudukkottai, Cuddalore and Thanjavur districts to tackle intra-state disparities, and Knowledge Corridor in Hosur were among the key announcements.
While there were expectations that the state government may widen the Kalaignar Magalir Urimai Thogai scheme for women, the fund allocation for the scheme remained the same although the FM announced that measures will be taken to add more beneficiaries.
Allocation for most other social-welfare schemes also remained the same, with marginal increase for a few. It did announce an exemption of 1% in registration fee for properties registered in the name of women if the value is within Rs 10 lakh.
As expected, the finance minister attacked the union government for its refusal to allot funds for Samagra Shiksha scheme and reiterated firmly that the state would never budge from preventing the imposition of three-language formula and instead foot the bill of Rs 2,152 crore from its own kitty. He, however, expressed hope that the union government would release the funds in the coming year without imposing any conditions.
With many of the state-run universities in deep financial crisis, the government seems to have shrugged off its ambivalence in offering grants to these universities. The FM announced that block grant to universities will be enhanced to Rs 700 crore.
The budget also proposed to raise Rs 500 crore for Anna University by tapping into alumni network and partnering with industries to foster research and make the university a globally-recognised one.
While a new city has been planned near Chennai on 2,000 acres, the state’s longest elevated flyover (14.2 km) will be built from Thiruvanmiyur to Uthandi along ECR at a cost of Rs 2,100 crore. The new city will feature a variety of modern amenities, including IT parks, fintech trade zones, research and development centres, high-tech companies, banking and insurance firms, shopping complexes, trade centres, and conference halls.
While a new airport is planned near Rameswaram, the Tamil Nadu Maritime Transport Manufacturing Policy 2025 will drive investments in ship and boat design, hull fabrication, and engine production, creating 30,000 jobs.
Thennarasu also announced a significant increase of 22.4% in the capital expenditure for 2025-26 (Rs 57,231 crore) even though the revised estimates for 2024-25 did not show any marked increase in state’s revenues.
Detailed project reports for metro rail projects on the Avinashi Road and Sathyamangalam Road routes in Coimbatore estimated at Rs 10,740 crore, and for the Thirumangalam-Othakadai corridor in Madurai estimated at Rs 11,368 crore have been submitted for equity contribution from the centre.
Construction work in both the cities will commence after the approval is granted, the FM said. Sources in the corridors of power, however, said that though populist announcements were largely missing in the budget, it would not be surprising if some are made under Rule 110 by the CM during the budget session.
Technology
Knowledge Corridor in Hosur
Semiconductor Mission at a cost of Rs 500 crore to be implemented over the next five years to boost semiconductor exports. Hosur to have Knowledge Corridor
Education
Laptops for college students
20 lakh college students will be provided free tablet or laptop, based on their preference, over the next two years at a total cost of Rs 2,000 crore
Language
Excavations at eight locations
Archaeological excavations to be carried out in eight locations. A language museum announced in Madurai, with the conduct of World Tamil Olympiad every year
Infra
New city on 2,000 acres near Chennai
A 2,000-acre new city to come up near Chennai. TN to build its longest elevated flyover (14.2 km) from Uthandi to Thiruvanmiyur at a cost of Rs 2,100 crore
Welfare
More women to get Rs 1,000 honorarium
The state has allocated about Rs 13,807 crore for the Magalir Urimai Thogai scheme for women. More beneficiaries to be added this fiscal year