TNPSC DEVELOPER ACADEMY 1

TAMILNADU BUDGET 2025-26

Tamil Nadu’s fiscal deficit for FY 2024-25 was dropped to 3.26% in revised estimates from 3.44%.
The outstanding borrowing for Tamil Nadu in the Budget 2025 is projected to be ₹9,29,959 crore.

Government projects its revenue receipts at

₹3,31,569 crore in 2025
75.3% of revenue comes from the state's own
sources, 24.7% from the share in Central taxes and
grants-in-aid from the Union Government.

STATE’S OWN TAX REVENUE

The total expenditure is projected to be ₹4,39,293 crore in 2025.

Revenue Expenditure: Rs.3,73,204 crore. Highest: Subsidies &
Grants > Salaries > Interest payments
The capital expenditure in 2025 is projected at ₹57,231 crore.
Highest: Roads > Transport > Water supply
The revenue deficit is estimated at ₹46,467 crore in 2024 and
₹41,635 crore in 2025.
The fiscal deficit is 3.26% in 2024 and is projected to reduce to
3.00% in 2025.
TAMIL DEVELOPMENT
Translation of Vanpughazh Valluvam: ₹133 lakh allocated for
translating in 45 world languages within the next three years.

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• spreading the fame of Vanpughazh Valluvam

globally, with 100 books translated annually and
500 books in five years.
• Tamil Nadu Textbook and Educational Services
Corporation with other educational institutions.
₹2 crore allocated for the digitization of ancient Tamil
palm-leaf manuscripts and rare publications.
₹10 crore allocated for Tamil language and folk arts
classes for Non-Resident Tamils’ Welfare Board.
Annual World Tamil Olympiad competition to spread
classical Tamil culture.
‘Agaram – Museum of Languages’ is to be established at
Madurai World Tamil Sangam campus to educate about
the continuity of Tamil.
CULTURE
Kodumanal Excavations Museum: ‘Noyyal Museum’ to be
established in the Erode district at ₹22 crore to focus on
Kodumanal excavations.
Pandya Maritime Trade Museum: ‘Naavaai Museum’ is to be
established in Ramanathapuram district at ₹21 crore to
highlight the maritime trade excellence of the Pandyas.
‘Indus Valley Cultural Gallery’ is to be established at Egmore Museum in Chennai to
commemorate the centenary of the Indus Valley Civilization discovery.
₹40 crore allocated for a traditional architectural gallery within the museum complex.
Tamil Nadu State Department of Archaeology plans to conduct deep-sea excavations
along the coast.
Excavations will take place at eight locations:
• Keezhadi (Sivagangai) • Manikkollai (Cuddalore)
• Pattanamarudur (Thoothukudi) • Adhichanur (Kallakurichi)
• Karivalamvanthanallur (Tenkasi) • Vellalur (Coimbatore)
• Nagapattinam, • Thelunganur (Salem)

RURAL DEVELOPMENT
Kalaignar Kanavu Illam Scheme: ₹3,500 crore allocated for the construction of 1 lakh houses in 2025
‘Mudhalvarin Grama Salaigal Membattu Thittam’ (MGSMT) scheme: length of 6,100 kilometers of rural roads will
be improved at a cost of Rs.2,200 crore in 2025.
The Government has decided to reconstruct new houses in lieu of dilapidated houses built for marginalized
sections of the society in rural areas under various schemes prior to 2001.
MUNICIPAL ADMINISTRATION
Rs.4,132 crore have been undertaken under the 'Kalaignar Nagarpura Mempattu Thittam' over the last four years. In
the coming financial year, an amount of Rs.2,000 crore has been allocated to complete the works sanctioned under
this scheme.
A new project, ‘Ring Main Pipeline Project’, will be implemented for connecting all the water distribution stations
to ensure equitable distribution of water supply to all the water distribution stations in Chennai city.
Waste-to-Energy Plant to be set up in Tambaram Corporation with a processing capacity of 1,500 tons of non-
recyclable solid waste, generating 15 - 18 MW of electricity.
Bio CNG plant, composting plant, Automatic Material Recovery Facility, and 21 MW electricity generation from
solid waste at the Kodungaiyur dump yard at a life-cycle cost of ₹3,450 crore.
BALANCED GROWTH
A new city will be developed near Chennai, covering 2,000 acres. Phase 1 of the
‘Global City’ project, offering world-class facilities, will be commenced by
TIDCO soon.
WOMEN WELFARE
10,000 new SHGs will be formed to include women from marginalized sections. Target
of ₹37,000 crore in bank loans for SHGs in 2025
Construction of ‘Thozhi’ working women’s hostels in 10 places, including
Kanchipuram, Erode, Karur, and Ranipet, at ₹77 crore, benefiting 800 women.
Monthly scholarship of ₹1,000 for third gender students pursuing higher education under the Puthumai Penn and
Tamizh Pudhalvan Scheme. Training for transgenders to join Home Guard Force for tasks like traffic management
and crowd control.
• In the first phase, implemented with 50 transgenders in Chennai, Tambaram and Avadi cities.

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 TNPSC DEVELOPER ACADEMY 3
WELFARE OF SENIOR CITIZENS
25 'Anbucholai' centres will be established in Municipal Corporations with
an allocation of ₹10 crore to ensure the well-being of senior citizens.
CHILD WELFARE
Expansion of the Chief Minister’s Breakfast Scheme to include
Government-aided schools in urban areas from class I to class V, benefiting
3.14 lakh students in 2025.
SCHOOL EDUCATION
The State government has allocated funds from its exchequer to compensate for ₹2,152
crore due from the Centre under the Samagra Shiksha scheme.
Naan Mudhalvan-Kalloori Kanavu: Awareness programs on scholarship opportunities for
graduation courses will be introduced in 500 Government schools across 388 panchayat unions.
HIGHER EDUCATION
₹25 crore allocated for setting up the Industrial Research and Innovation Fund to support Industry-Academia
partnerships.
Perunthalaivar Kamarajar College Development Scheme: Development of infrastructure, including smart
classrooms, modern laboratories, e-libraries in Government colleges and Anna University affiliated colleges with
an estimated cost of ₹300 crore.
Establishment of a state-of-the-art Chennai Science Centre [Rs.100 crore]in collaboration with the Singapore
Science Centre.
₹100 crore allocated for establishing two Basic Sciences and Mathematics Research Centres in Chennai and
Coimbatore, in collaboration with IISc and TIFR.
The earned leave (EL) surrender system will be restored for government employees and teachers. Employees can
encash their EL by surrendering up to 15 days of leave. This system will be effective
from April 1, 2026.
A roadmap will be drawn up to make Anna University- among the top 10 institutions
in the country and top 150 in the global QS rankings, within the next five years.
NAAN MUDALVAN
₹10 crore allocated for scholarships for postgraduate and research studies at prestigious foreign universities.
₹2,500 crore in educational loans for 1 lakh college students in 2025.
An incentive of Rs.50,000 will be provided to the youth who pass the main examination and prepare for the
interview.
YOUTH WELFARE AND SPORTS
Physical education curriculum will include chess to nurture future champions.
₹10 lakh incentive for male and female athletes from Tamil Nadu who successfully scale Mount Everest.
LABOUR WELFARE
Tamil Nadu Platform-Based Gig Workers Welfare Board has been established to promote the welfare of workers. A
group insurance scheme will be introduced for gig workers to cover accidental death and disability.
• ₹20,000 subsidy will be provided to 2,000 internet-based service workers for purchasing new electric
vehicles (e-scooters).
Construction workers above the age of 40 who are registered with the Construction Workers Welfare Board will be
entitled to receive a Master Health Checkup.
HEALTH AND FAMILY WELFARE
HPV vaccinations will be provided progressively to all girls aged 14 years to eradicate
cervical cancer in Tamil Nadu.
INDUSTRIES
Launch of the Tamil Nadu Semiconductor Mission-2030 next five
years with an allocation of ₹500 crore.
Establishment of a Semiconductor Fabless Lab in Chennai at ₹100 crore in collaboration
with industry and academic institutions.
Semiconductor manufacturing parks will be set up in Sulur and near Palladam in
Coimbatore, covering 100 acres each.
Footwear parks will be established in Melur (Madurai) and Cuddalore, generating
10,000 jobs in each location.
The ‘Hosur Knowledge Corridor’ will be developed, similar to the OMR IT corridor in
Chennai.
Tamil Nadu announces the development of a new airport in Rameswaram,
Ramanathapuram district, to boost tourism and regional development. The state is also
expediting work on the Parandur airport near Chennai.
A state-of-the-art bioscience park near Chennai to strengthen Tamil Nadu’s position in
emerging fields like biosimilars and therapeutics.

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 TNPSC DEVELOPER ACADEMY 4
TIDCO will establish a Centre of Excellence for advanced pump motor manufacturing
and a Centre of Excellence for foundry in Coimbatore.
The Government will introduce the ‘Tamil Nadu Maritime Transport Manufacturing
Policy 2025’.
MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)
The Common facility centres for MSMEs involved in spices, egg-based foods, handicrafts, and
engineering goods will be established at ₹50 crore in areas like Theni[spices], Namakkal,
Paramakudi[electrical line materials], Thanjavur[handicrafts] and Chennai.
PROMOTION OF STARTUPS
A ₹10 crore Space-Tech Fund will be set up to encourage space-tech startups.
Mudhalvar Padaipaggam: CM Spaces will be established in 30 locations across Tamil Nadu, including major cities
like Chennai, Coimbatore, and Madurai, at a cost of ₹5 crore each.
INFORMATION TECHNOLOGY
The ELCOT will establish the ‘Viyan AVGC-XR Hub’ in Chennai at ₹50 crore to promote Animation, Visual Effects,
Gaming, and Comics (AVGC) industries.
ELCOT will implement the ‘Tamil Nadu StartUp Data Server Services Scheme’ with ₹10 crore to provide data centre
vouchers of up to ₹5 lakh each for registered startups with iTNT and StartUp TN.
WATER RESOURCES
The Government of Tamil Nadu will implement the Comprehensive Water Resources Development Programme’
(CWRDP) at a cost of Rs.2,000 crore from the coming financial year.
Chennai will get its sixth reservoir between Kelambakkam and Mamallapuram. The reservoir will be located along
East Coast Road (ECR) and Rajiv Gandhi Salai in the Chengalpattu district. It will be constructed at a cost of ₹350
crore in the Kovalam sub-basin. The reservoir will have a storage capacity of 1.7 thousand million cubic feet.
GREEN ENERGY
An ‘Integrated Renewable Energy Policy’ will be introduced to consolidate and streamline existing policies for
promoting renewable energy in Tamil Nadu.
Government will take steps to develop a 4,000 MWhr Battery Energy Storage System in 2025
CLIMATE CHANGE
Six beaches in Tamil Nadu (Tiruvanmiyur, Palavakkam, Uthandi in Chennai, Kulasekarapattinam in Thoothukudi,
Keezhputhupattu in Villupuram, and Samiyarpettai in Cuddalore) will receive Blue Flag certification in 2025-26,
with a budget of ₹24 crore to ensure high environmental standards.
Establishment of a Raptors Research Foundation at Rs.1 crore to develop conservation strategies and raise
awareness among local communities about preserving raptors (birds of prey).
Steps to notify Dhanushkodi as a Greater Flamingo Sanctuary to protect migratory wetland birds and their
ecosystems.
A Biodiversity Park will be developed in Melchengam (Thiruvannamalai), spanning 1,000 hectares, to protect
endangered tree species native to Tamil Nadu.
The Government will establish a ‘Marine Resource Foundation’, with an initial funding of Rs.50 crore.
TRANSPORT
Deployment of 1,125 electric buses in Chennai, Coimbatore, and Madurai starting this year to promote clean and
efficient public transport.
Two multimodal transport terminals will be established in Chennai, one in Guindy and another in Washermanpet,
each with modern facilities for passengers, at an estimated cost of ₹50 crore each.
CHENNAI METRO RAIL
Detailed project reports have been submitted for metro rail projects in Coimbatore (Avinashi Road and
Sathyamangalam Road) and Madurai (Thirumangalam–Othakadai corridor), with estimated costs of ₹10,740 crore
and ₹11,368 crore, respectively, awaiting Union Government approval.
Chennai Metro Extensions
• Airport metro line extension to Kalaignar Centenary Bus Terminus (15.46 km, ₹9,335 crore).
• Koyambedu line extension to Pattabiram via Avadi (21.76 km, ₹9,744 crore).
• Poonamallee to Sunkuvarchatram extension (27.9 km, ₹8,779 crore).
• Detailed project reports are prepared for Tambaram–Velachery (21 km) and Lighthouse–High Court (6 km)
routes.
The Chennai Metro Rail Corporation will conduct feasibility studies for a 160 km/h speed SHR (Suburban High-
Speed Rail) system along routes like:
• Chennai–Chengalpattu–Tindivanam–Villupuram (167 km)
• Chennai–Kanchipuram–Vellore (140 km)
• Coimbatore–Tiruppur–Erode–Salem (185 km)
The Chennai Metro Rail Corporation will conduct feasibility studies for the establishment of a high altitude transport
system, such as a ropeway, in Mamallapuram, Udhagamandalam, and Kodaikanal.

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ADI DRAVIDAR AND TRIBAL WELFARE
120 Village Knowledge Centres will be constructed with an estimated cost of ₹117 crore to enhance education and
digital access in rural areas.
₹65 crore allocated for the Annal Ambedkar Overseas Higher Education Assistance Scheme to support talented
students from underprivileged communities in pursuing education at world-renowned institutions in the 2025-26
financial year.
Launch of the Nannilam Women Land Ownership Scheme to empower
women agricultural workers from scheduled caste and scheduled tribe
communities by making them landowners, with ₹20 crore allocated in
2025-26.
• The registration fee for all immovable assets, including houses,
plots, and agricultural lands, will be reduced by 1%. This discount
applies when the asset is registered in the name of women. The
fee reduction is applicable for assets valued up to ₹10 lakh.
The Tholkudi scheme will be implemented at an estimated cost of ₹1,000
crore over four years, with an annual allocation of ₹250 crore.
To recognize and encourage Panchayats that promote social unity and
avoid caste-based discrimination, the government will present the Social
Harmony Panchayat Award to 10 deserving village panchayats.
Chief Minister's Thayumanavar Thittam: Approximately 50,000 poorest families with children who have lost both
parents will receive a monthly stipend of ₹2,000 to help them continue their education until they turn 18.
‘Tribal Livelihood Policy’ will be developed to preserve and leverage traditional tribal knowledge while enhancing
biodiversity.
WELFARE OF DIFFERENTLY ABLED
To encourage the employment of differently-abled persons in the private sector, the Government will offer a wage
subsidy of Rs.2,000 per person per month for one year to every private firm that employs at least 10 differently-
abled persons.
TOURISM
Tamil Nadu Tourism Promotion and Facilitation Act to attract investment, promote economic growth, and support
hospitality industries.
Eco Park (52 acres) to be established at Race Course area, Udhagamandalam, Nilgiris district at a cost of Rs.70
crore.
HANDLOOMS
Powerloom Modernization Scheme: Rs.50 crore for capital subsidies to upgrade 3-year-old powerlooms into
modern ones for high-value fabric production.
Handloom Support Scheme: Additional Rs.10 crore to Handloom Weavers Cooperative Societies for working
capital credit.
Tamil Nadu Technical Textile Mission: Rs.15 crore to promote technical textiles and encourage investment in this
sector.

MISCELLANEOUS
For 2025-26, ₹125 crore has been allocated for the restoration of temples over a thousand
years old.
TANSHA (Tamil Nadu State Highways Authority) will construct a 14.2 km elevated road from Thiruvanmiyur to
Uthandi along the East Coast Road at a cost of ₹2,100 crore.
The Mudhalvarin Kaakkum Karangal Scheme will benefit 400 ex-servicemen and their dependents in 2025-26.
Additional passenger boats will be operated from Chinna Muttam Port as a second terminal to the Thiruvalluvar
statue.
Separate Heat Wave Action Plans will be developed for 11 cities. ‘Tamil Nadu State Institute of Disaster
Management’ (TNSIDM) will be established in Chennai at an estimated cost of Rs.50 crore.
Government of Tamil Nadu, in collaboration with the Innovation Hub of RBI, to introduce ‘Unified Lending
Interface’ technology through various banks in the state.

TAMILNADU BUDGET 2025-26 Economic Survey of TN 2024

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ALLOCATION FOR MAJOR ONGOING SCHEMES

TAMILNADU BUDGET 2025-26 Economic Survey of TN 2024

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ECONOMIC SURVEY OF TAMILNADU

2024-25
Economic Growth and Resilience
• Global economy posted 3.33% growth in 2023. India’s economy recorded 7.61% growth (2022-23), 9.19% (2023-24),
and 6.48% (2024-25).
• Tamil Nadu showed strong economic resilience, achieving 8% or more growth since 2021-22.
• The state is expected to maintain above 8% growth in 2024-25.
• With 4% of India’s land and 6% of its population, Tamil Nadu contributed 9.21% to the national GDP in 2023-24.
o Gross State Domestic Product (GSDP) at current prices reached ₹27.22 lakh crore in 2023-24.
o Nominal growth rate: 13.71%, Real growth rate: 8.33%.
• Tamil Nadu is a major exporter of automobiles, auto components, textiles, and leather.
• In 2022-23, Tamil Nadu’s per capita income was ₹2.78 lakh, 1.6 times the national average of ₹1.69 lakh. It is the
fourth-largest state in per capita income.
Sectoral Contributions & Industrial Growth
• Sector-wise GSVA (2023-24): Services: 53.63%, Industry: 33.37%, Agriculture: 13%
• Manufacturing sector grew at 8.33% (2021-24), construction at 9.03%. Tamil Nadu contributes 11.90% to India’s
manufacturing GDP.
• MSME presence: 35.56 lakh Udyam-registered MSMEs (2nd highest in India).
Inflation
• Tamil Nadu’s average inflation rate (2019-20 to 2023-24) was 5.7%, higher than India’s average of 4.85%.
• India’s retail inflation (CPI): 4.9% in 2024-25 (till Jan 2025). Tamil Nadu’s retail inflation: 4.8% in 2024-25 (as of Jan
2025)
• In 2023-24, Tamil Nadu recorded 8th lowest retail inflation among 20 major Indian states.
• Urban inflation (2024-25): 4.5%, Rural inflation: 5.4%
Trade, Investment & Foreign Direct Investment (FDI)
• FDI Inflows (2019-24): Increased from ₹5,909 crore to ₹20,157 crore.
• Global Investors Meet 2024 attracted ₹6.64 lakh crore, expected to create 14.55 lakh jobs.
Agriculture & Rural Economy
• griculture contributes ₹1.5 lakh crore (6% of GSVA) and is the fifth largest sector.
• Food grains cover around 62% of the total cropped area. Non-food crops account for the remaining 38%.
• Paddy dominates the cropping pattern, with its share rising from 32.1% (2019-20) to 34.4% (2023-24).
Agricultural Statistics at a Glance (2024):
▪ 1st in productivity of oilseeds, groundnut, and sugarcane.
▪ 2nd in maize productivity. 3rd in paddy productivity.
• Fertilizer consumption rose from 9.65 lakh metric tonnes (2019-20) to 10.68 lakh metric tonnes (2023-24).
• Agricultural power consumption increased from 13,811 million units to 17,957 million units.
• Agricultural credit (through scheduled commercial banks) rose from ₹1.83 lakh crore (2019-20) to ₹3.58 lakh crore
(2023-24).
o Tamil Nadu is the leading state in agricultural credit disbursed by commercial banks.
Horticulture, Livestock & Fisheries
• 2023-24: 16.3 lakh hectares under horticulture crops.
• GSVA from livestock: ₹1.35 lakh crore (2023-24). Livestock sector contributes 5.41% to Tamil Nadu’s total GSVA.
o Tamil Nadu ranks 2nd in egg production and 6th in meat production in India.
• Fishing and Aquaculture: Contribute <1% to GSVA. Exports: 1.34 lakh tonnes of fish products. Foreign exchange
earnings: ₹6,854 crore (2023-24).
Industrial Performance
• 1st in motor vehicle production, wearing apparel, leather products. 2nd in textiles, machinery, and electronics.
• Workforce in 2023-24: 33.31% engaged in industrial activities: 15.97% in manufacturing. 17.2% in construction.
Services Sector & Banking
• Urban workforce in service sector: Tamil Nadu: 54.63%. India (national average): 58.07%
• Tamil Nadu’s Credit-Deposit Ratio (CDR): Increased from 109.2% (2019-20) to 117.7% (2023-24).
• Credit to service sector (2019-24): ₹2.86 lakh crore → ₹4.46 lakh crore.
• Tamil Nadu has 24,390 ATMs (highest in India).

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 TNPSC DEVELOPER ACADEMY 8

Social Development & Human Capital

• Labour Force Participation Rate (LFPR) 15-59 years (2023-24): 64.6%, higher than India’s 64.3%.
o #1 in Social Progress Index (SPI) & Gross Enrolment Ratio (GER).
o #2 in Low Infant Mortality, Low Birth Rate, Low Poverty.
o #3 in Sustainable Development Goals (SDG) Index & Health Index
• Social sector expenditure (2019-24): ₹79,859 crore → ₹1.16 lakh crore.
• TN Poverty rate (2005-23): Dropped from 36.54% in 2005-06 to 1.43% in 2022- 23. (India’s head count rate declined
from 55.34% to 11.28%.)
• Tamil Nadu ranks 4th among major states in Average Monthly Per Capita Consumption (Rural + Urban), Annual Per
Capita Income.
Education & Higher Learning
• Share of India’s Total Enrolment in school education: 5.24%.
• Gross Enrolment Ratio (GER) (2023-24)
📚 Level 🏫 Tamil Nadu 🇮🇳 India
Elementary (Classes 1-8) 98.4% 91.7%
Secondary (Classes 9-10) 97.5% 77.4%
Higher Secondary (Classes 11-12) 82.9% 56.2%
• Teacher-Pupil Ratio in primary and secondary education is higher than the national average.
• Tamil Nadu ranks second in the School Education Quality Index (SEQI) by NITI Aayog, with a score of 73.4%, behind
only Kerala (82.2%).
• Dropout Rate (Secondary Education): Tamil Nadu: 4.5%
• Top 100 Universities: 8 State Universities. Top 50 Research Institutions: 3 from Tamil Nadu. Engineering Colleges:
506 (Highest in India). Polytechnics: 492 (Highest in India)
Healthcare & Public Welfare
• Ranks 3rd in life expectancy among major Indian states. A major hub for medical tourism. 36 government medical
college hospitals
Climate Change & Sustainability
• Cyclones: Vardah (2016), Ockhi (2017), Gaja (2018), Michaung (2023), Fengel (2024). Floods: 2015, 2017
• Temperature rise: +0.68°C per century. Annual rainfall: Declining trend.
• Climate Studio, Anna University report: Climate Studio established at Centre for Climate Change and Disaster
Management (CCCDM), Anna University in 2019.
o Northeastern coastal regions: Highly vulnerable
o Western Ghats: Lower vulnerability
o Eastern Ghats: Degradation
• ₹1,000 crore Green Fund set up. Tamil Nadu State Action Plan on Climate Change (2023-30) launched.
• Ranks 1st in NITI Aayog’s SDG 13 (Climate Action) Index (Score: 81).
Future Economic Outlook
• Projected GSDP by 2030: ₹45 lakh crore ($1 trillion economy target).

TAMILNADU BUDGET 2025-26 Economic Survey of TN 2024