Tamil Nadu Budget 2025 highlights: From global city near Chennai to housing scheme for underprivileged

Tamil Nadu Budget 2025 Live Updates: Tamil Nadu CM M K Stalin with Finance Minister Thangam Thennarasu. (Image: PTI)

Tamil Nadu Chief Minister M K Stalin-led DMK regime on Friday presented its Budget 2025-26 in the Assembly, a full-fledged exercise ahead of the state election next year, and made big allocations for its flagship welfare schemes which include the fare-free bus travel scheme for women.

While presenting the Budget, Finance Minister Thangam Thenarasu said women using fare-free bus services has risen to 65 percent from 40 percent. "On an average, 50 lakh women travel daily in the buses run by State Transport Undertakings, leading to a total of 642 crore trips so far. Notably, a study by the State Planning Commission revealed that women save an average of Rs 888 per month due to this initiative. For the year 2025-26, the government has allocated a subsidy of Rs.3,600 crore for the scheme in the Budget Estimates," he said.

This is the fifth Budget of the present DMK government since it stormed to power in 2021. FM Thenarasu announced that work has been expedited to set up a new airport at Parandur near Chennai, PTI reported.

Tamil Nadu Budget 2025 Key Highlights

- The state govt has allocated Rs 3,500 crore for the ambitious Kalaignar Kanavu Illam housing scheme, which will provide one lakh new houses to underprivileged citizens across the state. The scheme, named after former Chief Minister M. Karunanidhi, is aimed at ensuring affordable housing for low-income families.

- The Tamil Nadu government will disburse Rs 2,500 crore education loans to 1 lakh college students. Rs 1,000 crore has been allocated for improving government schools’ infrastructure.

- 6,100 kilometers of rural roads will be improved at a cost of Rs 2,200 crore.

- Rs 675 crore has been allocated for modernisation of drinking water projects. The state FM also announced a slew of drinking water projects across Erode, Mayiladthurai, Thiruvallur and other districts of TN, with an allocation of over Rs 26,000 crore.

- A group insurance scheme will be introduced for 1.50 lakh workers in Tamil Nadu. The Finance Minister said that a gig workers welfare board has already been created in Tamil Nadu. The DMK government will soon launch a program to extend Rs 20,000 to gig workers to buy e-scooters for their work.

- The Finance Minister announced that 500 selected Tamil books will be translated into other languages through the State Textbook Corporation. Book fairs will be organized in Delhi, Mumbai, Kolkata, Thiruvananthapuram, Singapore, and Kuala Lumpur, he said. He also announced that a World Tamil Olympiad will be held annually. Also, 'Agaram' – a language museum – will be established in Madurai.

- A new global city spanning over 2000 acres near Chennai will be developed. This will have schools, colleges, private enterprises, and other infrastructure. Housing facilities will also be made, wide roads, and parks and other leisure will also be created.

- The Finance Minister said that in this budget, Rs 3,000 crore has been allocated for the Magalir Vidiyal Payanam Bus Travel Scheme, Rs 1,782 crore for student bus fare subsidies, and Rs 1,857 crore for diesel subsidies. “Overall, a total allocation of Rs 12,964 crore has been made for the transport sector in this budget," said the finance minister.

He added that detailed project reports have been prepared for the extension of the Chennai Metro Rail network. From Chennai Airport to Kalaignar Centenary Bus Terminus in Kilambakkam (15.46 km) at an estimated cost of Rs 9,335 crore. From Koyambedu to Pattabiram via Avadi (21.76 km) at an estimated cost of Rs 9,744 crore and from Poonamallee to Sunguvarchatram via Thiruperumbudur (27.9 km) at an estimated cost of Rs 8,779 crore.