Tamil Nadu Budget 2026: Vijay govt announces Rs 44,527 crore for school education, gold coins & silk sarees for weddings, free laptops and bicycles

Tamil Nadu Finance Minister Marie Wilson on Wednesday presented the first Budget of the Tamilaga Vettri Kazhagam (TVK)-led government for the financial year 2026-27 in the Legislative Assembly.

The maiden Budget of Chief Minister C. Joseph Vijay's government outlined major spending plans for education, welfare, healthcare and economic growth, while setting an ambitious target of making Tamil Nadu a USD 1.5 trillion economy by 2036.

Read more - 8 gram gold coin and silk saree to be given to bride, announces Finance Minister Marie Wilson in Vijay govt's first budget


The Budget session also marked the first major legislative face-off between Chief Minister Vijay and Leader of the Opposition Udhayanidhi Stalin.

Free bicycles, helmets and bottle holders for students

To encourage education and improve student welfare, the government announced that bicycles worth Rs 277 crore, along with helmets and bottle holders, will be distributed to Generation Z students across the state.

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The initiative aims to improve access to education while promoting road safety among students.

Rs 2,000 crore for free laptops

Under the 'Vetri Madikanini Thittam', the government will spend Rs 2,000 crore to provide laptops to college students.

The scheme is intended to strengthen digital learning and improve access to technology in higher education.

Gold rings for babies born in government hospitals

The Budget allocated Rs 560 crore for the 'Thaai Maaman Thanga Modhira Thittam', under which one-gram gold rings will be presented to babies born in government hospitals.

The welfare scheme is aimed at supporting newborns and their families.

Education receives major boost

Education emerged as one of the biggest priorities in the Budget.

The government announced Rs 2,132 crore to modernise government schools across Tamil Nadu.

An additional Rs 300 crore has been earmarked for education-related initiatives during the current financial year, while Rs 25 crore will be spent on restructuring the state's school curriculum.

The government also allocated Rs 125 crore to establish 'Perunthalaivar Kamarajar' modern residential schools.

Overall, the Budget provides Rs 44,527 crore for the School Education Department and Rs 8,393 crore for the Higher Education Department.

New schemes for cleaner campuses and drug-free schools

The government allocated Rs 139 crore for the 'Super Clean Super Campus' scheme to improve sanitation and infrastructure in educational institutions.

It also announced Rs 7 crore under the 'Drug Free Tamil Nadu' initiative to strengthen awareness and preventive measures against substance abuse.

Wedding assistance scheme expanded

The TVK government also announced a new welfare measure for women.

Under the scheme, eligible women will receive an eight-gram gold coin and one silk saree during their wedding. The government has allocated Rs 812 crore for the programme.

Tamil Nadu targets USD 1.5 trillion economy

Presenting the Budget, Finance Minister Marie Wilson said the government aims to transform Tamil Nadu into a USD 1.5 trillion economy by 2036 through sustained investments, infrastructure development and human capital growth.

The Budget places a strong emphasis on education, social welfare and economic development as the Vijay-led government sets out its priorities for its first full financial year in office.

Safe Roads Mission and 'Namma Salai' app announced

The Budget also introduced the Safe Roads Mission, aimed at improving road safety and accelerating road maintenance across Tamil Nadu.

The mission will focus on safer road design, construction and maintenance while using artificial intelligence for speed monitoring and traffic enforcement. It also proposes dedicated road patrols and stronger trauma care centres to improve emergency response.

To support the initiative, the government will launch the 'Namma Salai' mobile application, allowing residents to photograph and report potholes and other road defects. The app is expected to help authorities identify damaged roads quickly and carry out repairs more efficiently.

Rs 21,524 crore allocated for highways and road infrastructure

The government has allocated Rs 21,524 crore to the Highways and Minor Ports Department in the revised Budget Estimates.

Of this, Rs 9,300 crore has been earmarked under the Comprehensive Road Infrastructure Development Programme to widen state highways into four-lane roads, construct bypasses, improve road safety, build pedestrian overbridges, upgrade panchayat and panchayat union roads, construct bridges and enhance overall road quality.

Acknowledging that several roads have deteriorated because of inadequate maintenance, the government has also set aside Rs 250 crore to repair damaged stretches through performance-based maintenance contracts.

Rs 1,051 crore allocated for sports and youth welfare

The Vijay-led government has allocated Rs 1,051 crore to the Sports and Youth Welfare Department, with a focus on strengthening grassroots sports and nurturing young talent.

As part of the initiative, the government will establish 10 Special Olympics centres at a cost of Rs 50 crore. Government schools will also introduce one hour of sports and physical exercise every day after classes, replacing the existing system of two physical education periods a week. Schools will be provided with the necessary sports equipment to implement the programme.

The Budget also earmarks Rs 42 crore to promote Tamil Nadu's traditional sports at the national and international levels. In addition, Rs 5 crore has been allocated to identify talented athletes aged 8 to 18 years and provide them with world-class training.

Affordable housing scheme announced for middle-income families

The government has allocated Rs 8,852 crore to the Housing and Urban Development Department and unveiled a series of initiatives aimed at expanding affordable housing and improving urban planning.

A new 'My Home' scheme will be launched under the public-private partnership (PPP) model to build one lakh affordable homes over the next seven years for middle-income families and economically weaker sections. To support the programme, the government plans to invest Rs 15,000 crore through the PPP model and has earmarked Rs 3,500 crore as Viability Gap Funding (VGF) to attract private investment.

The Budget also noted that 24,131 affordable housing units are currently under construction across the state, while work on another 14,194 units is expected to begin this year. In addition, Rs 1,253 crore has been allocated to redevelop ageing and dilapidated tenements.

AI-powered governance platform and Chennai master plan

To improve urban governance, the government announced Rs 40 crore for establishing SPEED (Single Platform for Efficient Expedited Development), an AI-powered integrated platform designed to make planning approvals faster, more transparent and automated.

The Budget also allocates Rs 25 crore to prepare a Comprehensive Master Plan for the expanded Chennai Metropolitan Area, covering 5,904 sq km. The plan is intended to guide the region's long-term growth and will be developed in line with global urban planning standards.