CM Vijay-led govt presents first Budget, allots over Rs 1,000 cr for gold ring, coin gifts
Tamil Nadu Finance Minister N Marie Wilson on Wednesday, August 5, presented the maiden budget of the TVK regime, earmarking over Rs 1,000 crore to provide gifts of gold coin, ring and milch cows to women beneficiaries and making a tight rope walk to ensure phased implementation of populist assurances made before the 2026 Assembly polls and at the same time attempting to stick to fiscal prudence.
The C Joseph Vijay-led government said it was undertaking various measures for additional revenue mobilisation, even as it said the states' finances were in the red.
Main opposition party DMK, besides its Dravidian rival AIADMK, gave a 'zero' to the budget.
Additional privilege fee on liquor manufacturers, which is expected to mobilise an additional annual revenue of up to Rs 1,000 crore was among the initiatives cited by the government that also sought to reach out to Gen Z and Gen Alpha populations with branded bicyles and laptops.
Citing reforms, transparency and action against corruption, Wilson praised CM Vijay for completely halting the practice of "cut" (kickbacks) in tenders for some parties and individuals.
On the policy front, opposition to NEET and raising the water level of Mullaiperiyar was among the stances reiterated by the government. Wilson urged the Centre to scrap the qualifying test and revert to the old method of medical admissions based on class 12 marks.
Wilson said the Chief Minister always stands by every women in Tamil Nadu as their elder and younger brother.
"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."
Under the "Thai Maaman Thanga Mothiram Thittam," every newborn delivered in a Government hospital 12 will receive a 1 gram gold ring, at a cost of Rs.560 crore.
Explaining the scheme, Wilson said maternal and child healthcare is a core pillar of Tamil Nadu's public health system.
Under the "Vetri Magalir Goat Rearing Scheme", a 100 % subsidy for five goats or sheep will be provided to destitute widows, deserted women, transgender persons and persons with disabilities, benefiting about 30,000 persons, at a cost of Rs 110 crore
The government unveiled a slew of targeted schemes like distribution of branded bicycles, providing AI skill training to youth and specialised urban housing
"The fiscal position of the State is in the red, and we have been handed a treasury box that is overburdened with debt and sub optimal income with leaking holes," Wilson said, adding the government would need at least two years to get the state back on rails of fiscal prudence.
The revenue deficit in the revised budget estimates for 2026-27 is estimated to rise to Rs 55,775 crore.
The fiscal deficit in revised budget estimates 2026-27 (3.00 % of GSDP) is estimated at Rs 1,21,819 crore.
Finance Secretary M A Siddique said that the state budget strikes a careful balance between welfare and physical capital expenditure.
Siddique noted that initiatives intended for women's empowerment and education are critical investments, adding that the government has not cut down any existing welfare schemes. The overall allocation for various welfare schemes this year is estimated to be between Rs 15,000 crore and Rs 18,000 crore.
The government plans to avail a total loan of Rs.1,73,445 crore during 2026-27 and make repayment of Rs.51,971 crore.
The outstanding liabilities as on 31st March 2027 will be Rs.10,98,768 crore, amounting to 27.01 % of GSDP in 2026-27.
Opposition leaders unanimously dubbed the financial statement as relying heavily on renaming existing schemes rather than fulfilling key electoral promises.
DMK President M K Stalin on Wednesday dubbed the TVK regime's maiden budget as lacking original thinking and one which did not fulfill promises.
Leader of the Opposition Udhayanidhi Stalin on Wednesday termed the TVK government's budget "big zero" and slammed the alleged reduction in the budgetary allocation for education.
AIADMK General Secretary Edappadi K Palaniswami echoed these sentiments, giving the budget a "zero" rating. He highlighted the state's alarming financial health, pointing out that the overall debt has swelled to Rs 10.98 lakh crore, alongside a revenue deficit of Rs 55,785 crore and a fiscal deficit of Rs 1.21 lakh crore.
"In the 85 days since this government took over, not a single new scheme has been introduced. They have completely ignored their election promises, including the Rs 2,500 monthly assistance for women, six free LPG cylinders, Rs 3,000 old-age pension, and the full crop loan waiver," Palaniswami stated, demanding a concrete roadmap for revenue generation.
