TVK government’s first budget focuses on welfare while acknowledging fiscal stress
Tamil Nadu Finance Minister N. Marie Wilson on Wednesday presented the first budget of the TVK government led by Chief Minister C. Joseph Vijay, unveiling a mix of welfare measures and revenue-generating initiatives while acknowledging the state’s strained financial position.
The budget allocates over Rs 1,000 crore for schemes aimed at women and vulnerable sections, with the government stating that several election promises would be implemented in phases to ensure fiscal discipline.
Among the key announcements is the “Annan Seer” scheme, under which eligible women will receive an 8-gram gold coin and a silk saree on their wedding day. The government has earmarked Rs 812 crore for the programme.
Another major initiative, the “Thai Maaman Thanga Mothiram Thittam”, will provide every newborn delivered in a government hospital with a one-gram gold ring. The scheme has been allocated Rs 560 crore as part of efforts to strengthen maternal and child welfare.
The budget also introduced the “Vetri Magalir Goat Rearing Scheme”, which will provide a 100 per cent subsidy for five goats or sheep to destitute widows, deserted women, transgender persons and persons with disabilities. Around 30,000 beneficiaries are expected to receive assistance under the Rs 110-crore programme.
Other announcements include branded bicycles and laptops for students, AI skill training for youth and specialised urban housing initiatives.
To strengthen revenue, the government announced an increase in the additional privilege fee on liquor manufacturers, a move expected to generate nearly Rs 1,000 crore annually.
Wilson said the government had taken steps to improve transparency and curb corruption in public contracts. He also reiterated the state’s opposition to the NEET examination and urged the Union government to restore medical admissions based on Class 12 marks. The government also reaffirmed its demand to raise the water level of the Mullaperiyar dam.
Describing the state’s finances as challenging, Wilson said the government had inherited a debt-heavy treasury and would require about two years to restore fiscal stability.
According to the revised estimates for 2026-27, the revenue deficit is projected at Rs 55,775 crore, while the fiscal deficit is estimated at Rs 1,21,819 crore, equivalent to 3 per cent of the Gross State Domestic Product.
Finance Secretary M.A. Siddique said the budget balances welfare spending with capital expenditure and added that no existing welfare schemes had been reduced. Welfare allocations this year are estimated at between Rs 15,000 crore and Rs 18,000 crore.
The government plans to borrow Rs 1,73,445 crore during 2026-27 while repaying Rs 51,971 crore. Outstanding liabilities are expected to reach Rs 10.98 lakh crore by March 31, 2027, amounting to 27.01 per cent of GSDP.