Tamil Nadu Unveils ₹11,000 Crore Supplementary Budget for 2025-26
In a significant fiscal move, Tamil Nadu Finance Minister Thangam Thennarasu presented a supplementary budget of nearly ₹11,000 crore for the financial year 2025-26 on Friday. The budget is primarily aimed at funding key welfare initiatives, including disbursements under the Kalaignar Magalir Urimai Thittam (KMUT) and a special Pongal gift for ration cardholders.
Key Allocations and Financial Details
According to the supplementary estimates, the finance minister has sought substantial funds for several critical areas:
- ₹3,913 crore for the KMUT scheme under the Special Programme Implementation Department, targeting 1.31 crore women beneficiaries with a disbursement of ₹5,000 each.
- ₹6,975 crore for the distribution of a Pongal gift of ₹3,000 to over 2.22 crore ration cardholders across the state.
- ₹3,285 crore allocated to settle terminal benefits for retired, voluntarily retired, and deceased employees of the transport department.
- ₹3,086 crore for the Finance Department to facilitate the transfer of the guarantee redemption fund related to the previous financial year.
Minister's Statements and Political Context
During the assembly presentation, Thennarasu emphasized that the recent distribution of ₹5,000 to women under KMUT was not a "surgical strike" but rather a strategy rooted in compassion and executed with clinical precision. He highlighted the DMK government's efforts to position Tamil Nadu on a clear development trajectory, enabling it to compete with South Asian economies and developed European nations through welfare and growth-focused schemes.
Thennarasu noted that several states have begun replicating the flagship schemes of the Dravidian Model government, which prioritizes building a sustainable future. In a gesture of political acknowledgment, he thanked the chief minister on behalf of the Leader of Opposition, Edappadi K Palaniswami, for distributing school bags printed with the former CM's picture, recalling the distribution of 65 lakh bags featuring EPS.
Impact and Broader Implications
This supplementary budget underscores the state's commitment to enhancing social welfare and economic stability. By allocating significant resources to direct benefit transfers and employee welfare, the government aims to bolster household incomes and support vulnerable populations. The focus on replicable schemes under the Dravidian Model reflects a broader strategy to drive inclusive growth and set benchmarks for other regions.
The financial provisions also address legacy liabilities, such as terminal benefits and fund transfers, ensuring fiscal responsibility while advancing developmental goals. As Tamil Nadu continues to implement these initiatives, the impact on local economies and social indicators is expected to be closely monitored by policymakers and stakeholders alike.
