Chennai: Tamil Nadu Chief Minister M K Stalin-led DMK regime on Friday presented its Budget 2025-26 in the Assembly, a full-fledged exercise ahead of the state election next year, and made big allocations for its flagship welfare schemes including the fare-free bus travel scheme for women and announced one per cent reduction in registration fee for immovable assets registered in their name.
The state's outstanding debts was projected at over Rs 9 lakh crore, as revealed by the government. Principal opposition AIADMK and BJP slammed the government over the borrowings.
Earlier, noisy scenes were witnessed in the Assembly as the main opposition AIADMK walked out after attempting to raise alleged graft in state-run liquor corporation TASMAC vis-a-vis the Enforcement Directorate searches over the Rs 1,000 crore 'scam'.
Leader of Opposition, Edappadi K Palaniswami, who led a walkout of his party MLAs, told reporters the AIADMK asked the DMK government to own up moral responsibility for the TASMAC 'scam' and "tender resignation," and staged a walkout on the issue. The BJP members too staged a walkout on a similar issue and protesting against the government's move to change the rupee logo.
Finance Minister Thangam Thennararasu, who spoke for about 2 hours and 38 minutes, offered a slew of sops aimed at women, including a one per cent reduction in registration fees for property registered in their name.
Further, the minister announced that the registration fee for all immovable assets, including houses, plots and agricultural lands, valued up to Rs 10 lakh will be reduced by one per cent when registered in the name of women, from April 1, 2025.
Thennarasu said women using fare-free bus services has risen to 65 per cent from 40 per cent. For the year 2025-26, the government has allocated a subsidy of Rs 3,600 crore for the scheme in the Budget Estimates, he said.
A major initiative that provides access to bank loans of up to Rs 10 lakh, along with a 20 per cent subsidy to elevate one lakh women as entrepreneurs will be undertaken. On the "Kalaignar Magalir Urimai Thittam" of Rs 1,000 monthly assistance for 1.15 crore women, he said Rs 13,807 crore has been allocated. Women who are eligible but have not yet received the assistance, will soon get opportunity to apply, he said.
He announced 10 more 'Thozhi' working women’s hostels at a cost of Rs 77 crore; already 13 hostels are functioning.
The government projected its revenue receipts at Rs 3,31,569 crore for 2025-26. Revenue from its own taxes is estimated to increase by 14.6 percent in 2025-26, it said.
Total expenditure of the government is projected to be Rs 4,39,293 crore in 2025-26 which is an increase of 9.95 percent over 2024-25. A major portion will be spent on welfare schemes.
The Fiscal Deficit is estimated to be Rs 1,06,963 crore. As of March 31, 2026, the outstanding borrowings will be Rs 9,29,959.30 crore.
The education sector hogged the lion's share of allocations at Rs 55,261 crore.
Thennarasu further said the Chief Minister's Breakfast Scheme will be expanded and Rs 600 crore has been allocated. Twenty lakh college students will be provided with a tablet or laptop, based on their preference, over the next two years and Rs 2,000 crore will be allocated for this scheme in 2025-26.
A new airport at Rameswaram, expedition of work to establish a new airport at Parandur near Chennai, a satellite city near the state capital with world class amenities and restoration of Earned Leave Surrender System for government employees were among the announcements he made.
The state government successfully implemented various student welfare schemes. "Notably, initiatives such as the Ennum Ezhuthum Thittam to ensure foundational literacy, special education for differently-abled children, transport allowances for students from remote areas, salary for teachers, guidance for higher education to shape students' future, art festivals to nurture unique talents, educational tours and infrastructure development, including internet facilities in schools, are in progress".
Despite the Centre 'withholding' Rs 2,152 crore to Tamil Nadu, citing the State's non-acceptance of National Education Policy, which includes the three-language policy, the state government considering the welfare of students, allocated funds from its own resources to ensure the education of government school students remained unaffected.
A sum of Rs 3,500 crore for one lakh new houses under Kalaignar Kanavu Illam scheme, Rs 2,200 crore for CM's Rural Roads Development Scheme, Rs 88 crore for 'sponge parks' in Chennai to recharge groundwater and fight against flooding, were among the other announcements. A new scheme will be launched to provide subsidy of Rs 20,000 to 2,000 Gig workers registered with the welfare board to purchase new electric vehicles.
Responding to the budget tabled on Friday, Palaniswami wondered how would the government manage the funds required to implement them.
Further, of the 525 promises made in 2021 during the polls, "not even 15 per cent have been implemented," but CM Stalin claims 95 per cent had been done, he said.
The promises included NEET 'abolition' and fuel prices reduction. "This government is running only on publicity," the former CM charged.
BJP TN chief K Annamalai termed the debts situation as 'unprecedented.' Indicating that the budget did not have any major announcements, he said "just a plain white paper could have been tabled."