The Tamil Nadu Budget 2025-26 has been presented amid a language row with the Union government. The Budget, which was presented by state Finance Minister Thangam Thenarasu on Friday, March 14, has several social justice schemes, likely in anticipation of Assembly elections in Tamil Nadu in 2026.
The government has allocated a total subsidy of Rs 3,600 crore for the Vidiyal Payanam scheme, which allows women to travel free of cost in ordinary fare state-owned public buses. This was one of the first schemes launched by the Dravida Munnetra Kazhagam (DMK) upon coming to power in 2021. Another significant allocation of Rs 13,807 crore has been made for the Kalaignar Urimai Thogai scheme, which provides Rs 1,000 to women household heads, a highly popular promise made ahead of the 2021 Assembly elections.
The Moovalur Ramamirtham Ammaiyar Puthumai Penn Thittam, aimed at promoting higher education among girls from economically disadvantaged backgrounds, has been allotted Rs 420 crore. The Finance Minister highlighted that enrollment rates had increased by 19% in the previous financial year, with an additional 40,276 girl students joining higher educational institutions.
Additionally, 10,000 new Self-Help Groups (SHGs) will be formed in the next financial year to include women from marginalised communities who have yet to be part of the SHG network. The state government has set a target of providing Rs 37,000 crore in bank loans to SHGs.
Further, 10 new working women’s hostels will be opened under the Thozhi scheme in various districts, including Kanchipuram, Erode, Karur, and Ranipet, at an estimated cost of Rs 77 crore. Three more hostels will be established in Chennai, Madurai, and Coimbatore, maintained by the Tamil Nadu Working Women’s Hostels Corporation Limited, with priority given to women from SC, ST, MBC, OBC, and religious minority communities.
The government has also allocated Rs 36 crore to enhance its Human Papillomavirus (HPV) vaccination scheme, targeting girls under the age of 14. In addition, Rs 8,597 crore has been allocated to the Social Welfare and Women Empowerment Department.
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The state government has extended both the Moovalur Ramamirtham Ammaiyar Puthumai Penn Thittam and the Tamil Puthalvan scheme, which grants Rs 1,000 a month to students from government schools pursuing higher education, to transgender students.
Previously, the Puthumai Penn Thittam covered only girl students, while the Tamil Puthalvan scheme was open to all students. Both schemes now appear to be accessible to trans persons.
However, the exact terms of this inclusion are unclear, as the state government has used the term ‘third gender’, rather than the term trans persons, trans men, or trans women, while making the announcement. The term 'third gender' is outdated and not preferred by the community.
Further, it is also to be noted that the Tamil Nadu government, in 2022, had published a glossary of LGBTQIA+ terms in Tamil in the government gazette in a first-of-its-kind move in the country, with the terms prepared by members of the LGBTQIA+ community.
Additionally, the government in its Budget has also announced the induction of trans persons into the Home Guard, an auxiliary force to the Indian Police Services (IPS), with a pilot project in Chennai, Tambaram, and Avadi involving 50 trans persons.
The government has allocated Rs 75 crore for the Chief Minister’s Adi Dravidar and Tribal Socio-Economic Development Scheme (CM-ARISE), under which entrepreneurs can avail loans up to Rs 10 lakh with a 35% interest subsidy.
The Iyothee Thassar Pandithar Habitation Development Scheme has been allocated Rs 280 crore to provide essential infrastructure such as roads, streetlights, drinking water, and 120 Village Knowledge Centres in Dalit and Adivasi communities.
The Annal Ambedkar Overseas Higher Education Assistance Scheme, which supports Dalit and Adivasi students pursuing higher education abroad, has received Rs 65 crore.
The Nannilam Women Landownership Scheme, launched in 2024, will continue with an allocation of Rs 20 crore, aimed at aiding landless Dalit and Adivasi women in purchasing land.
Additionally, the government has introduced a Tribal Livelihood Policy alongside the ongoing Tholkudi scheme to promote tribal ecological knowledge for biodiversity conservation, with initial implementation in Bargur and Kadambur hills in Erode district and Kalvarayan hills in Kallakurichi district.
Further, Rs 733 crore has been earmarked for post-matric scholarships for Dalit and Adivasi students, and Rs 3,924 crore has been allocated to the Adi Dravidar and Tribal Welfare (AD&TW) Department.
A sum of Rs 10 crore has been allocated for the repair and maintenance of heritage mosques and dargahs, and another Rs 10 crore towards similar repair and renovation of heritage churches.
For OBCs and MBCs, the state government has supplemented the Rs 19 crore sanctioned by the Union government for scholarships for students in Classes 9 and 10 with an additional Rs 98 crore. Additionally, Rs 146 crore has been allocated for pre-matric scholarships, and Rs 335 crore for post-matric scholarships for OBC and MBC students.
For persons with disabilities, the government has introduced a wage subsidy of Rs 2,000 per month for one year to private firms employing at least 10 persons with disabilities.
A separate project, costing Rs 125 crore, will provide modern assistive devices, such as high-tech Smart Vision Glasses and Teaching Learning Materials (TLM-Kits) for children with intellectual disabilities.
Additionally, a special Bill will be introduced in the Assembly to ensure the representation of disabled persons in local government bodies. The Department for the Welfare of Differently Abled Persons has been granted Rs 1,433 crore.
The Chief Minister’s Breakfast Scheme will be extended to government-aided schools in urban centers with a budget allocation of Rs 600 crore. Currently, the scheme provides breakfast to government primary school students in Classes 1 to 5 and is considered one of the DMK’s flagship projects. Additionally, Rs 3,676 crore has also been allocated for the Integrated Child Development Scheme.
Under the Chief Minister’s Thayumanavar Thittam, launched in 2024, financial aid of Rs 2,000 per month will be provided to 50,000 severely economically backward families in which children have lost both parents and are being raised by relatives.
The state government has increased compensation for mechanised fishing boats seized by Sri Lankan authorities to Rs 8 lakh, while compensation for country motorised boats has been raised to Rs 2 lakh. Financial assistance for families of fishermen detained in Sri Lankan prisons has also been increased from Rs 350 to Rs 500 per day.