Amidst the state’s ongoing disputes with the Union government over the National Education Policy (NEP) and funding allocations, the DMK-led government aims to achieve self-reliance in critical sectors. Hence, the budget is likely to announce major investments across key sectors, reinforcing Tamil Nadu’s commitment to self-sustainability.
Published Mar 14, 2025 | 12:26 AM ⚊ Updated Mar 14, 2025 | 12:26 AM
Synopsis: The 2025-26 Tamil Nadu budget is expected to prioritise education, infrastructure, and employment policies as the DMK government prepares for the 2026 elections. With a strong focus on self-reliance, the budget may introduce significant investments in higher education, industrial expansion, and large-scale job creation, particularly in response to ongoing disputes with the Union government over funding.
Tamil Nadu Finance Minister Thangam Thennarasu is set to present the 2025-26 state budget for 2025 on Friday, 14 March at the state assembly.
The budget is expected to be a comprehensive policy document of the Dravida Munnetra Kazhagam (DMK) government ahead of the 2026 elections, with a strong focus on education, infrastructure development, and addressing the challenges of an ageing population.
Furthermore, amidst the state’s ongoing disputes with the Union government over the National Education Policy (NEP) and funding allocations, the DMK-led government aims to achieve self-reliance in critical sectors.
Hence, the budget is also likely to announce major investments across key sectors, reinforcing Tamil Nadu’s commitment to self-sustainability.
With Tamil Nadu already boasting a Gross Enrollment Ratio (GER) of 47 percent – significantly higher than the national average of 28 percent – the state government has set ambitious goals to make its education system self-sustainable.
Amid ongoing debates over the three-language formula and the Centre’s funding policies, substantial investments in the education sector are expected.
A key focus will be the integration of Artificial Intelligence (AI) into education, aligning with global trends and meeting student demand for advanced courses.
As previously reported by South First, students across Tamil Nadu have been advocating for the introduction of new departments in higher education to keep pace with global technological advancements.
The government appears determined to fulfil these demands, ensuring that Tamil Nadu remains a leader in educational development.
Infrastructure is another major investment area in the upcoming budget. The government is planning large-scale projects to boost connectivity and support economic growth.
Chennai is expected to receive two multi-modal transport hubs, improving the city’s transport network and urban mobility. The establishment of an additional airport in the state may also be included in the budget.
Beyond urban development, industrial expansion in key districts is likely to be a focus.
The DMK-led administration aims to promote industrial growth, making Tamil Nadu an attractive destination for businesses and global investors. Upgrading industrial corridors and ensuring infrastructure development aligns with economic sustainability are part of the state’s vision.
The budget is expected to introduce major employment initiatives.
According to the recently released Tamil Nadu Economic Survey 2024-25, more than 14 lakh jobs are expected to be created through the Global Investors Summit.
Building on this momentum, the government is planning additional employment programmes to provide further opportunities for youth and skilled professionals.
Furthermore, in response to recent agitations by government employees over unfilled vacancies, the administration is preparing to address the issue by filling thousands of posts in various state departments.
With nearly five lakh vacancies pending, this move will not only improve government service delivery but also help reduce unemployment.
Tamil Nadu has already achieved the highest women’s workforce participation in the manufacturing sector compared to other states.
To build on this, the government is expected to introduce new initiatives aimed at increasing women’s participation in the workforce, particularly in emerging industries.
The budget is likely to include special policies and incentives to support women entrepreneurs, enhance skill development programmes, and create a more inclusive labour market.
