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T.N. Budget caters to key sectors, core voter base 

T.N. Budget caters to key sectors, core voter base 

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In its final full budget before the 2026 Assembly elections, the M.K. Stalin-led government sought to strike a balance by catering to its core voter base—women and government employees—while addressing key sectors of the economy.

While the state’s overall debt burden is expected to rise to ₹9,29,959.3 crore, the Debt to GSDP ratio remains within the prescribed limits at 26.07%.

Finance Minister Thangam Thennarasu, presenting the Tamil Nadu Budget for 2025-26, placed significant emphasis on education, archaeology, and infrastructure development in both rural and urban areas.

To provide women with greater economic security, the budget introduced a 1% reduction in registration fees for immovable assets (including houses, plots, and agricultural lands) valued up to ₹10 lakh when registered in the name of women. This measure will come into effect on April 1, 2025.

In a bid to boost women’s participation in economic development, the government will launch a scheme offering skill development training, entrepreneurial guidance, and access to bank loans of up to ₹10 lakh, with a 20% subsidy. An allocation of ₹225 crore has been set aside for this initiative.

Addressing the concerns of government employees and teachers, the budget reinstated the Earned Leave (EL) surrender system, which was suspended during the COVID-19 pandemic. Starting April 1, 2026, employees will be able to encash up to 15 days of earned leave.

Focusing on education, the Finance Minister announced a scheme to provide 20 lakh college students with a tablet or laptop of their choice over the next two years, with ₹2,000 crore allocated for this initiative in 2025-26.

Additionally, under the flagship ‘Kalaignar Kanavu Illam’ scheme, the construction of an additional one lakh houses will be undertaken in 2025-26, with an allocation of ₹3,500 crore.

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