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Tamil Nadu Finance, Planning and Development Minister N Marie Wilson, on Wednesday, August 5, presented the Revised Budget Estimates (RBE) for 2026-27 in the Legislative Assembly, describing it as the first budget of the present government and laying out a roadmap centred on education, social welfare, governance reforms, infrastructure, revenue mobilisation and public service delivery. The government said the budget is aligned with its 'Vetri Tamizhagam – Vision Document', which seeks to transform Tamil Nadu into a $1.5 trillion economy by 2036 while strengthening social justice and inclusive growth.
Here are the major announcements from the Budget:
Rs.2,000-crore Vetri Laptop Scheme
The government announced the 'Vetri Laptop Scheme' for college students with an allocation of Rs 2,000 crore to provide laptops as an essential learning resource.
Right to Services Act
The government announced that vacancies would be filled through recruitment agencies while a Right to Services Act would be framed and enacted to improve service delivery.
'Thaaimaaman Thanga Mothiram Thittam'
The government reiterated its commitment to the 'Thaaimaaman Thanga Mothiram Thittam', under which children born in government hospitals will receive a gold ring. The scheme is scheduled to be implemented from September 15, coinciding with the birth anniversary of former Chief Minister CN Annadurai (Perarignar Anna), and is intended to encourage institutional deliveries while marking the birth of children with a welfare benefit.
Free electricity relief
The Finance Minister highlighted the government's decision to increase free electricity for eligible domestic consumers with bi-monthly consumption of up to 500 units from 100 units to 200 units. The measure was presented as a key relief initiative aimed at reducing household electricity expenses and easing the financial burden on families.
Anti-Drug Clubs in schools
As part of its vision for a drug-free Tamil Nadu, the government will establish Anti-Drug Clubs and student volunteer groups in schools to create awareness about the dangers of narcotic drugs and psychotropic substances from an early age. The initiative also includes prominently displaying the 10581 anti-drug helpline in all school campuses and promoting the 'Drug-Free Tamil Nadu' mobile application, which enables students and teachers to confidentially report drug trafficking and substance abuse. The government has allocated Rs.7 crore for implementing the programme.
School infrastructure push
The government will introduce the 'Palli Niraivu Thittam' to modernise 3,734 government schools at an estimated cost of Rs 2,132 crore, with Rs.300 crore allocated in the current budget.
Super Clean Super Campus Scheme
The scheme will provide daily cleaning, maintenance of drinking water facilities and toilets, and round-the-clock security in 10,000 government schools during the first phase with an allocation of Rs.139 crore.
Perunthalaivar Kamarajar Schools of Excellence
Modern residential schools for academically talented students from disadvantaged backgrounds will be established with free education, boarding, uniforms and textbooks. Infrastructure development has been allocated Rs 125 crore.
AI and Machine Learning in ITIs
Artificial Intelligence and Machine Learning will be introduced as a new trade in 50 government Industrial Training Institutes over five years, benefiting around 24,000 students.
Vetri Skill Training Scheme
The government will provide industry-aligned skill training to 12 lakh college students and one lakh unemployed youth, besides internships for 20,000 youngsters in the first phase.
AI-enabled governance
The budget proposes AI-enabled governance tools, including a Quality Assurance Audit Board, agentic AI and speech-to-text assistance for government employees. A Governance Processes Reforms Committee headed by the Chief Secretary will also be constituted.
Women's safety and anti-drug initiatives
The 'Singapenn Special Task Force' for women's safety has been allocated Rs 354 crore. A new STING (Special Task Force for Interdiction of Narcotics and Gangs) has been established across all districts, while a Rs 70-crore Rehabilitation Fund has been created for de-addiction.
Digital certificate verification
Income, community and first-generation graduate certificates will shift to a streamlined three-tier verification process.
Enhanced health insurance for government employees
Under the New Health Insurance Scheme 2026, the basic insurance cover will increase from Rs 5 lakh to Rs 7.5 lakh, while coverage for specified illnesses and corpus limits will also be enhanced.
Integrated Court Complex in Chennai
An Integrated Court Complex housing 160 courts will be established at Broadway in Chennai at an estimated cost of Rs 1,375 crore. The budget allocates Rs 10 crore towards preliminary works.
Tamil Large Language Model
The Tamil Virtual Academy will develop a Tamil Large Language Model. Educational tours to archaeological sites and incentives for students memorising Thirukkural couplets have also been announced.
Presenting the budget, the Finance Minister said the government intends to implement programmes outlined in the 'Vetri Tamizhagam – Vision Document' over the next one, three and five years. The budget also reiterates the government's commitment to strengthening education, improving governance, enhancing public infrastructure, expanding welfare measures and pursuing fiscal reforms while aiming to build a poverty-free and prosperous Tamil Nadu by 2036.
