Tamil Nadu Budget 2025: Key announcements on jobs, welfare & development | Check Highlights

The Tamil Nadu government presented the Budget for 2025-26 in the state assembly, focusing on welfare schemes, job creation, and infrastructure projects. Finance Minister Thangam Thennarasu announced several key initiatives, including housing schemes, industrial development, and education support. The Budget also introduced measures to promote the Tamil language and literature while addressing concerns over central fund allocation. Opposition parties AIADMK and BJP staged a walkout, protesting the replacement of the rupee symbol with a Tamil letter and alleged irregularities in the state-run liquor corporation TASMAC.

A major highlight was the continuation of the two-language policy, rejecting the National Education Policy’s three-language system. The government allocated ₹2,500 crore for education loans benefiting one lakh students and ₹600 crore for expanding the Chief Minister’s Breakfast Scheme. Additionally, 20 lakh college students will receive either a tablet or a laptop over the next two years, with ₹2,000 crore set aside for the initiative. The state accused the central government of withholding ₹2,152 crore in approved education funds, stating that Tamil Nadu would independently fund student welfare programs.

Women-centric schemes received a significant boost, with ₹3,600 crore allocated for the fare-free bus travel scheme, benefiting 50 lakh women daily. The ‘Kalaignar Magalir Urimai Thittam’ was allocated ₹13,807 crore to provide ₹1,000 monthly assistance to 1.15 crore women. Additionally, 10 new ‘Thozhi’ working women’s hostels will be established at a cost of ₹77 crore, supplementing the existing 13 facilities. To support women entrepreneurs, bank loans of up to ₹10 lakh with a 20% subsidy will be provided to one lakh women.

Infrastructure projects included the construction of a new airport in Rameswaram and accelerated work on the upcoming airport at Parandur. Metro rail projects in Coimbatore and Madurai, estimated at ₹10,740 crore and ₹11,368 crore respectively, await central government approval. A 2,000-acre modern city near Chennai will be developed with IT parks, fintech zones, R&D centers, and residential complexes. Additionally, semiconductor manufacturing parks will be set up in Sulur and Palladam, each spanning 100 acres, to boost industrial growth.

The Budget also introduced the ‘Kalaignar Kanavu Ilam’ housing scheme, with ₹3,500 crore allocated to construct one lakh houses for low-income families. ₹88 crore was earmarked for ‘sponge parks’ in Chennai to mitigate flooding and improve groundwater recharge. The Chief Minister’s Rural Roads Development Scheme was allocated ₹2,200 crore for connectivity improvements. The government announced the Tamil Nadu Maritime Transport Manufacturing Policy 2025, aimed at boosting shipbuilding and creating 30,000 jobs in Cuddalore and Thoothukudi.

To support gig workers, a new welfare board will be established, and ₹20,000 will be provided for e-scooter purchases. A scheme was introduced for 1,000 selected students preparing for the UPSC Civil Services Preliminary Exam, offering ₹75,000 per month for 10 months, ₹25,000 for those clearing prelims, and ₹50,000 for mains qualifiers. The state also pledged to organize a World Tamil Olympiad annually with a ₹1 crore prize and develop ‘Agaram’—a Tamil language museum in Madurai. A discussion on the Budget is scheduled for March 17.