Tamil Nadu budget eyes $1.5 trillion economy by 2036, focuses on AI and education
The ruling Tamilaga Vettri Kazhagam (TVK) government on Wednesday presented its maiden Budget for 2026-27, outlining a roadmap to transform Tamil Nadu into a USD 1
The Tamil Nadu ruling party, Tamilaga Vettri Kazhagam (TVK), presented its first budget for 2026-27 on Wednesday. The budget aims to transform Tamil Nadu into a USD 1.5 trillion economy by 2036, focusing on regional development, job creation, infrastructure, and artificial intelligence. Finance Minister N Marie Wilson stated that the government is committed to investing in social, economic, and human capital to make Tamil Nadu poverty-free, prosperous, and socially just by 2036.
The budget allocates ₹1,300 crore for two gold assistance schemes – ₹812 crore for 'Annan’s Seer', providing an 8-gram gold coin and a silk saree for brides, and ₹560 crore for gold rings for newborns in government hospitals. An additional ₹2,000 crore will be spent on free laptop distribution under the Vettri Madikanini Thittam scheme.
Artificial intelligence and education are key focus areas. Tamil Nadu will establish India’s first AI and Innovation City, Arivagam, which will include an AI university, an international skill development center, and a semiconductor hardware testing laboratory. The government also announced the 'Super Clean, Super Campus' scheme for 10,000 schools, allocating ₹139 crore for the first phase to ensure daily cleaning, maintenance of water facilities, toilets, and security.
The Perunthalaivar Kamarajar School of Excellence is also set to be established, providing free education, boarding, food, textbooks, and uniforms to rural students from Classes 9 to 12.
The budget emphasizes the state’s strained finances and mounting debt. Wilson acknowledged that Tamil Nadu's debt has doubled over the past 5 years, reaching ₹10 lakh crore. The fiscal deficit is projected to be 3% of the Gross State Domestic Product (GSDP) in 2026-27, with a target to reduce to 2.87% in 2027-28 and 2.80% in 2028-29. The state plans to borrow ₹1,73,445 crore in 2026-27 and repay ₹51,971 crore, resulting in a net increase in public debt and liabilities of ₹1,20,964 crore.
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