Chennai, Feb 17 With the Tamil Nadu Assembly elections around the corner, state Finance Minister Thangam Thennarasu will present the TN Interim Budget for 2026-27 on Tuesday, amid heightened political and public expectations.
As this is an election year, the interim budget is expected to prioritise major welfare announcements and enhanced allocations for ongoing flagship schemes rather than unveil entirely new projects.
The Minister is also scheduled to table the Vote-on-Account for 2026-27 and the Supplementary Estimates for 2025-26 on February 20. A key focus is likely to be the Kalaignar Magalir Urimai Thittam, which currently provides Rs 1,000 per month to eligible women heads of households.
Chief Minister M.K. Stalin has earlier indicated that the monthly assistance may be increased to Rs 2,000. The interim budget is widely expected to formalise this hike and possibly expand the number of beneficiaries, a move seen as electorally significant.
Attention is also on the government’s recently announced Assured Pension Scheme for state employees. The report of the expert committee constituted to examine the scheme could be made public, a step that may help consolidate government employee support.
On the infrastructure front, the state may outline its strategy after the Centre reportedly declined approval for the Coimbatore and Madurai Metro Rail projects. Expansion of the free bus travel scheme for women, introduction of additional electric buses, and fresh allocations for roads and flyovers in Chennai and other major cities are also anticipated.
Under the Chief Minister’s “Speak Your Dream” initiative, select public proposals may receive funding support. The breakfast scheme for students is also likely to be fully extended to government-aided schools with additional allocations.
The interim budget comes against a strong economic backdrop. Tamil Nadu recorded 11.3 per cent growth in 2024-25, with its Gross State Domestic Product (GSDP) rising to Rs 31.19 lakh crore, retaining its status as India’s second-largest state economy.
The manufacturing sector posted 14.74 per cent growth, more than three times the national average of 4.5 per cent, and the state accounts for 15 per cent of India’s manufacturing employment.
Despite the welfare push, the government aims to reduce the fiscal deficit to 3 per cent of GSDP by 2025-26, while the revenue deficit is projected at 1.2 per cent, signalling a balancing act between populist measures and fiscal discipline.
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