Tamil Nadu finance minister N Marie Wilson on Wednesday presented the first budget of the Tamilaga Vettri Kazhagam (TVK) government for 2026-27 setting an ambitious target for the state to become a $1.5 trillion economy by 2036 and laying emphasis on regional development, creation of jobs, boosting infrastructure among others.

N Marie Wilson announced providing bicycles to school children and ‘Vetri Laptop Scheme’ with an allocation of ₹2,000 crore to equip college students. (Tamilnadu Assembly/ANI Video Gra)

“This government is committed to making the necessary social, economic and human capital investments in Tamil Nadu which has for many years been a leading state on socio-economic indicators in India into a poverty free, prosperous state that offers equal opportunity to all and upholds social justice as well as to propel the state into a $1.5 trillion economy by the year 2036,” Wilson said in the budget speech.

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The opposition Dravida Munnetra Kazgham (DMK), however, called the budget a “waste by a reel government”.

Allocation for key poll promises made by TVK

The TMK set aside ₹1,300 crore to fund two key women welfare schemes announced in the run-up to the last assembly elections. While ₹812 crore has been allocated for ‘Annan’s Seer’ scheme in which an 8-gram gold coin and a silk saree will be given to the bride on the wedding day, ₹560 crore were set aside for the gold ring schemes for babies born in government hospitals. It has also set aside ₹2,000 crore for free distribution of laptops under the ‘Vettri Madikanini Thittam’.

The budget also announced setting up of ‘Super Clean, Super Campus’ scheme for 10,000 schools with an allocation of ₹139 crore. Under the plan, daily cleaning, maintenance of drinking water facilities and toilets and security would be ensured in 10,000 schools. The government also announced ₹125 crore for setting up Perunthalaivar Kamarajar Model schools for rural students and modernisation of other government schools.

He also announced providing bicycles to school children and ‘Vetri Laptop Scheme’ with an allocation of ₹2,000 crore to equip college students with essential digital learning tools. A total of ₹44,527 crore have been allocated in the education sector.

Debt doubled, fiscal indicators lagging

Referring to the ‘white paper’ on the financial condition of the state, which was released in June, Wilson said, “It clearly indicates that Tamil Nadu’s debt has doubled over the past 5 years, reaching ₹10 lakh crore.”

He said the state has recorded fiscal indicators trailing behind peer states, including State’s Own Tax Revenue as a proportion of Gross State Domestic Product, Revenue deficit and fiscal deficit. Interest payments and committed liabilities as proportion of the State’s Total Revenue receipts have been rising consistently leaving limited fiscal space for new schemes and programmes, the finance minister said. Wilson said the revenue deficit in the revised budget estimates for 2026-27 is estimated at ₹55,775 crore.

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On the strength of revenue augmentation measures, including improved tax administration and collection efficiency, it is expected to narrow to ₹53,933 crore in 2027-28 and further to ₹51,058 crore in 2028-29, he said.

“In the forthcoming years, the fiscal deficit to GSDP ratio is projected to be 2.87% in 2027-28. In 2028-29, it is estimated to further reduce to 2.80%,” he said.

According to him, the revenue receipts, as per the revised budget estimate, was at ₹3,50,027 crore (for 2026-27) and for the 2027-28 it is projected to be ₹3,95,386 crore.

On the financial condition, he said the fiscal position of State is in the ‘red’ and the treasury box is overburdened with debt and suboptimal income. “The repair has been started, but would need at least 2 years to bring the financial administration back to the track of fiscal prudence”, he said.

“...Our government believes that we need to look forward to at least 15 years of sustained growth through consistent policies and providing clean and efficient governance,” he said.

Oppn says budget devoid of ‘original thinking’

DMK president and former chief minister MK Stalin said, “Not only that, this is a ‘remake version’ budget of the Dravidian Model government’s schemes, the ‘Reel Government’s’ first budget has turned out to be a damp squib — devoid of original thinking, failing to deliver on promises, and completely lacklustre.”

Leader of Opposition Udhayanidhi Stalin said there was “no scheme” to fulfil poll promises.

AIADMK chief Edapaddi K Palaniswami said the budget has no clarity on the roadmap to address the financial issues. “The overall debt stands at ₹10.98 lakh crore. In this short period, the TVK has taken ₹20,000 crore in debt and spent ₹17,000 crore. How this is possible?” he asked.