Tamil Nadu Chief Minister Vijay’s Tamilaga Vettri Kazhagam (TVK)-led coalition government has outlined a visionary roadmap to transform the state into a 1.5 trillion-dollar economy by the year 2031 in its maiden Budget in the Legislative Assembly on Wednesday (August 5, 2026).

Finance Minister N. Marie Wilson, who presented the State Budget, said several steps have been initiated to bring the state out of “financial crunch”. The TVK government had earlier issued a “white paper” on state finances, saying the outstanding debt stood at around Rs 10 lakh crore.

A massive portion of the budget – Rs 52,000 crore – has been earmarked for revitalising the state’s education. In a significant move, the government formally urged the Centre to restore medical admissions based on Class 12 public examination marks, reiterating the state government’s opposition to the National Eligibility cum Entrance Test (NEET).

The government also allocated over Rs 1,300 crore to two gold assistance schemes for women beneficiaries — both key promises of the TVK.

Here are the key takeaways from the Tamil Nadu Budget 2026–27:

Major Boost to Education & School Infrastructure

The TVK government has earmarked Rs 300 crore for modernisation of 3,734 state-run schools. Furthermore, Rs 139 crore has been set aside for a new initiative, ‘Super Clean, Super Campus ‘, focused on campus hygiene and security. The initiative will be launched in 10,000 schools during its opening phase, the minister said.

A major welfare initiative was also announced for college students with the introduction of the ‘Vetri Laptop Scheme.’ Under this program, the state government will provide laptops to college students to enhance their digital learning capabilities and academic resources.

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For rural and underprivileged students, the government announced the establishment of modern residential schools under the Perunthalaivar Kamarajar Model Schools scheme. The scheme, which will be launched with an initial investment of Rs 125 crore, will provide education, housing, and healthcare to students from the ninth to the twelfth grade at no cost to their families, the minister said.

In a move to expand specialised professional education, the government also plans to establish a Special Law College in Madurai and setup of five new Industrial Training Institutes (ITIs) across Tamil Nadu. The project is estimated to cost Rs90 crore, the minister said, according to news agency PTI.

Gold scheme for brides, child born in government hospital

The government has allocated Rs 812 crore for the “gold coin, silk saree scheme”, under which eight gm gold and a silk saree would be provided to brides during their wedding.

“Marriage is one of the most joyous occasions in a woman’s life. Our chief minister, who considers every women in Tamil Nadu as a member of his own family, will present an eight gram gold coin and a silk saree as ‘Annan Seer’ (elder brother’s gift) to them on their joyous wedding day. An amount of Rs 812 crore is allocated for this scheme in the revised budget estimates,” Finance Minister said, news agency PTI reported.

‘Thaai Maaman’ gold ring scheme is another standout announcement where a 1-gram gold ring for every child born in a government hospital, echoeing the traditional practice of a maternal uncle gifting gold at a birth.

Fiscal Governance & Revenue Measures

Addressing the state’s fiscal health, the Finance Minister said several steps have been initiated to fix the state’s financial liabilities, which have seen a two-fold increase over the preceding five-year period. To counter this, he emphasised that Chief Minister Vijay has shifted toward a more accountable tendering system, effectively ending the practice of “cut” in tenders for some parties and individuals.

The government also announced plans to implement a specialised levy on liquor production facilities. The move is projected to generate approximately Rs 1,000 crore in additional revenue, Finance Minister N. Marie Wilson told the Assembly.

Welfare & Public Commitments

The Finance Minister also highlighted the continued implementation of flagship programs, including the provision of 200 units of complimentary electricity and the operations of the specialised rapid response force for women’s safety.

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For the “Drug-free TN” plan, Rs 7 crore has been earmarked.

The minister listed initiatives of the TVK regime such as closure of 717 liquor outlets and 200 units of free power to domestic consumers.

He outlined steps under the visionary schemes, which include women empowerment and upholding social justice and housing for all.

With inputs from agencies