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NEW DELHI: Tamil Nadu chief minister M K Stalin’s DMK-led administration presented the state Budget for 2025-26 in the assembly on Friday, outlining extensive welfare provisions ahead of the forthcoming elections. The financial plan includes substantial allocations for key initiatives, notably the fare-free bus travel scheme for women.
However, the proceedings were briefly disrupted as AIADMK, the principal opposition, staged a walkout, citing allegations of corruption within the state-run liquor corporation TASMAC. The protest followed Enforcement Directorate investigations linked to the entity.
Increase in women commuters availing fare-free travel
Presenting the Budget, state finance minister Thangam Thenarasu highlighted the growing reliance on the government’s fare-free bus travel initiative for women. According to his statement, the proportion of female commuters using the service has surged from 40% to 65%.
“Currently, an average of 50 lakh women travel daily via buses operated by State Transport Undertakingswith the total number of trips reaching 642 crore. A study by the State Planning Commission indicates that this scheme saves women an average of Rs 888 per month,” he noted. To sustain the initiative, a subsidy of Rs 3,600 crore has been earmarked for the next fiscal year.
Financial support for women and infrastructure boost
Under the ‘Kalaignar Magalir Urimai thittam‘, which grants Rs 1,000 in monthly assistance to 1.15 crore women, an allocation of Rs 13,807 crore has been set aside. The minister also assured that eligible women who have yet to receive aid will be able to apply soon.
Additionally, the government will establish ten new ‘Thozhi’ working women’s hostels at a cost of Rs 77 crore, supplementing the existing 13 facilities.
Infrastructure development and education initiatives
The minister confirmed that plans for a new airport in Parandur, near Chennai, are progressing at an accelerated pace.
The state continues to invest in education, particularly through the ‘Samagra Shiksha’ scheme, which has driven various student welfare programmes for seven years.
Among these, the ‘Ennum Ezhuthum Thittam’ focuses on foundational literacy, while provisions for special education, transport allowances for students in remote areas, and infrastructure development—including internet access in schools—remain a priority.
Centre-state funding dispute over education policy
Thenarasu accused the Union government of withholding Rs 2,152 crore in approved funds due to Tamil Nadu’s rejection of the National Education Policy, which includes a three-language framework.
“Despite this, prioritising students’ welfare, the state government has independently allocated resources to ensure that education in government schools is unaffected,” he asserted.
He further remarked that Tamil Nadu’s populace has strongly supported the Chief minister’s stance on preserving the bilingual policy, even at the cost of foregoing substantial central funds.
Housing, rural development and urban planning
Significant allocations include Rs 3,500 crore for constructing one lakh houses under the Kalaignar Kanavu Illam housing scheme and Rs 2,200 crore for the Chief minister’s Rural Roads Development Scheme.
To enhance urban resilience, Rs 88 crore has been allocated for ‘sponge parks’ in Chennai to facilitate groundwater recharge and mitigate flooding.
New airport and maritime industry promotion
A new airport will be developed in Rameswaram, within the Ramanathapuram district, aiming to promote tourism in southern Tamil Nadu and stimulate economic growth.
To bolster the state’s shipbuilding industry, the Tamil Nadu Maritime Transport Manufacturing Policy 2025 has been introduced. The initiative seeks to attract investment in ship and boat design, hull fabrication, and engine manufacturing. This policy is projected to create 30,000 jobs, particularly in Cuddalore and Thoothukudi, while benefiting micro, small, and medium enterprises (MSMEs).
Opposition criticism and allegations
Tamil Nadu BJP President K Annamalai criticised the DMK government’s fifth Budget, dismissing it as a compilation of “publicity-driven empty announcements” and alleging extensive corruption.
“The DMK’s budget is nothing but empty rhetoric, offering no real progress while enabling corruption worth thousands of crores,” he posted on X, sharing an image of empty chairs to symbolise his claims about the government’s lack of accountability.
New language museum and employment initiatives
The Budget also unveiled plans for ‘Agaram – Museum of Languages’ at the Madurai World Tamil Sangam campus. This facility aims to educate future generations on Tamil’s rich linguistic heritage, incorporating technological displays to highlight its connections with other Indian languages.
On the employment front, the government intends to fill 40,000 positions within the next financial year.
From April 1, 2025, the registration fee for immovable properties worth up to Rs 10 lakh will be reduced by 1% if registered under a woman’s name.
A new scheme will facilitate bank loans of up to Rs 10 lakh for one lakh women entrepreneurs, with a 20% subsidy attached.
Digital access and metro rail expansion
To enhance digital access, 20 lakh college students will receive either a tablet or laptop over the next two years, with Rs 2,000 crore allocated for this scheme in 2025-26.
The chief minister’s breakfast scheme will also be expanded, with Rs 600 crore allocated for its continued implementation.
Additionally, detailed project reports for metro rail networks in Coimbatore and Madurai have been submitted for Union Government approval, with construction to commence upon securing the required funding.
Industrial growth and semiconductor manufacturing
In a bid to position Coimbatore as a major industrial hub, semiconductor manufacturing parks will be developed in Sulur and Palladam, each spanning 100 acres.
Thenarasu concluded his speech—lasting two hours and 38 minutes—by reaffirming the government’s commitment to infrastructure development, social welfare, and economic growth across Tamil Nadu.
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