CHENNAI: Tamil Nadu finance minister Thangam Thennarasu on Tuesday commenced the presentation of the Interim Budget for 2026-27 in the State Legislative Assembly, with the budget being tabled ahead of the upcoming Assembly elections.
As an election-year exercise, the interim budget outlines expenditure approvals and key allocations to ensure continuity of government programmes until a full budget is presented by the next government.
Key announcements so far:
• Health Department allocated Rs 22,090 crore, an increase from last year’s Rs 21,906 crore.
• MSME Department receives Rs 1,943 crore – Last year’s allocation stood at Rs 1,918 crore.
• A shipbuilding yard will be constructed in Tuticorin at an estimated cost of Rs 5,200 crore.
• Rs 374 crore allocated for measures to prevent sewage mixing in the Cauvery, Vaigai, Noyyal and Tamirabarani rivers, and for riverfront park development.
• The Finance Minister said tenders have been finalised for a 1,000 MW Battery Energy Storage System (BESS).
• A new Renewable Energy Policy will be released soon, the minister announced.
• Energy Department allocated Rs 18,091 crore.
• Transport Department receives Rs 13,062 crore.
• Rs 11,000 crore allocated for the Tamil Nadu Assured Pension Scheme (TAPS), described as fulfilling a long-standing demand of government employees.
• Adi Dravidar and Tribal Welfare Department allocated Rs 3,934 crore – Last year’s allocation: Rs 3,924.12 crore.
• Riverfront development works underway in Trichy, Madurai, Erode, Coimbatore and Tirunelveli, including:
– Sewage Treatment Plants (STPs)
– Street lighting
– Parks & public amenities
– Allocation: Rs 374 crore
• Commissioner of Railway Safety (CRS) approval expected soon for Chennai Metro Phase II (Poonamallee–Porur stretch).
• The Tamil Nadu govt continues to urge the Union government to approve the Coimbatore and Madurai Metro Rail projects, after earlier DPR rejections.
• State Highways Department allocated Rs 21,132 crore.
• 30 co-working spaces to be set up across Tamil Nadu at a cost of Rs 104 crore.
• Rs 28,687 crore allocated for the Rural Development Department.
• Finance Minister Thangam Thennarasu announced that an additional one lakh houses will be constructed under the Kalaignar Kanavu Illam housing scheme.
• Municipal Administration and Water Supply (MAWS) Department receives Rs 28,821 crore.
• MAWS allocation sees a Rs 2,143 crore increase compared to last year’s Rs 26,678 crore.
• The increase is aimed at boosting urban projects and civic infrastructure works.
• Rs 285 crore allocated for the construction of new museums across Tamil Nadu.
• School Education Department receives Rs 48,534 crore, marking an increase from last year’s Rs 46,767 crore.
• Higher Education Department allocated Rs 8,505 crore, up from Rs 8,494 crore in the previous financial year.
• Rs 1,471 crore earmarked for the Differently-Abled Welfare Department.
• Rs 718 crore allocated to the Sports and Youth Welfare Department.
• The Finance Minister stated that 1.3 crore women beneficiaries have been considered under the Kalaignar Magalir Urimai Thogai (KUMT) scheme, reaffirming the government’s commitment to welfare assistance.
• The government highlighted the impact of the Chief Minister’s Breakfast Scheme, stating it has improved school attendance and learning outcomes over the past four years.
• 1,123 projects under Singara Chennai 2.0 have been completed, according to the minister.
Earlier in the day, MLAs, including members of the opposition AIADMK, were seen arriving at the State Secretariat ahead of the budget session.
More details are expected as the Finance Minister continues the budget speech.