Chennai, aug 5:
The Tamil Nadu government’s 2026–27 Budget sets an ambitious target of transforming the State into a $1.5 trillion economy by 2031, while rolling out a series of education, welfare and governance reforms aimed at inclusive growth.
A major highlight of the Budget is the renewed focus on education, with significant allocations and new initiatives. The government has introduced the ‘Vetri Laptop Scheme’ to provide laptops to college students, aimed at improving digital access and learning outcomes. In addition, ₹300 crore has been earmarked for infrastructure development in over 3,700 government schools, while large allocations have been made for both school and higher education sectors.
The Budget also places emphasis on improving school environments through the ‘Super Clean, Super Campus’ scheme, which will be implemented in 10,000 schools in its first phase. The initiative aims to ensure better sanitation, maintenance and safety in educational institutions.
On the policy front, the government reiterated its opposition to the National Eligibility-cum-Entrance Test (NEET), urging the Centre to scrap the exam and restore admissions based on Class 12 marks.
Infrastructure and urban development have also received a major push, with significant spending on highways, road safety and housing. The Budget includes new affordable housing initiatives and continued investments in large-scale infrastructure projects to support economic growth and urban expansion.
In addition, the government announced reforms to improve transparency in public procurement by streamlining the tender process. Revenue measures, including a special levy on liquor production units, are expected to strengthen the State’s finances.
In the agriculture sector, the government unveiled a crop loan waiver of ₹5,932 crore, benefiting 14.43 lakh farmers, alongside a ₹134 crore allocation for the Kuruvai Package Scheme. To further support farmers, ₹7,432 crore has been earmarked for electricity subsidies, while the Agriculture and Farmers’ Welfare Department has received a total allocation of ₹14,984 crore, underscoring the State’s commitment to boosting farm productivity and reducing input costs.
The Budget also outlines significant measures for animal husbandry and fisheries. The ‘Vetri Magalir Goat Rearing Scheme’ will provide five goats or sheep with 100% subsidy to eligible beneficiaries, backed by an allocation of ₹110 crore.
Infrastructure development includes new veterinary facilities, with 41 hospital buildings, 25 polyclinics, 210 upgraded hospitals and 143 mobile veterinary units planned. Additionally, ₹31 crore has been allocated for the ‘Kaalnadaigal Kaappom’ livestock insurance scheme, along with ₹13 crore for fodder development and grazing land restoration.
In the fisheries sector, financial support has been enhanced with lean-period assistance increased from ₹6,000 to ₹7,000 per family, benefiting 1.93 lakh fishing families. The government has also allocated ₹12 crore as interest subsidy for deep-sea fishing boats and ₹57 crore to provide free milch cows to 10,000 eligible women annually.
Overall, the Budget reflects a comprehensive push to improve rural incomes, enhance agricultural resilience and strengthen allied sectors through targeted welfare schemes and infrastructure development.
Box
Key allocations
School Education: Rs 44,527 cr
Higher Education: Rs 8,393 cr
Labour Welfare: Rs 2,022 cr
Cooperation Dept: Rs 8,028 cr
Agriculture Dept: Rs 14,984 cr