Tamil Nadu Finance Minister Thangam Thennarasu presents the state Budget for the financial year 2026-27, during a session at the Assembly, in Chennai
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Moneycontrol18-02-2026, 15:47

Tamil Nadu Shifts Focus: Welfare Spending Soars, Industry & Infra Budgets Cut

  • Tamil Nadu's FY27 budget allocates one-fifth of total outlays to welfare, prioritizing social transfers over infrastructure and industry.
  • Welfare-oriented expenditure, including social welfare, nutrition, education, and health, surged to Rs 98,857 crore in FY27 from Rs 56,850 crore in FY20.
  • Spending on social welfare and nutrition reached nearly Rs 29,909 crore in FY27, emphasizing income support and nutrition programs.
  • The Kalaignar Magalir Urimai Thogai (KMUT) scheme payout for 13 million women doubled to Rs 12,000 per annum.
  • Allocations for industry, agriculture, and water supply and sanitation have significantly decreased, with industry budget more than halved and water supply spending plummeting.

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