
Tamil Nadu Budget: Key Announcements Aimed at Transforming Chennai
The DMK government in Tamil Nadu unveiled its budget for the 2025-26 fiscal year on Friday, 14 March, announcing major investments in infrastructure, urban development, and welfare initiatives aimed at transforming the capital city of Chennai. It is the last full budget of the current government ahead of the Tamil Nadu Assembly election in 2026.
The budget, presented by Chief Minister M.K. Stalin, focuses on accelerating the growth and development of Chennai, which is expected to become a smart city in the coming years. The budget allocates a significant portion of the total allocation to the capital city, with an aim to improve its infrastructure, public transportation, and amenities.
Infrastructure Development
One of the key highlights of the budget is the allocation of Rs. 12,000 crore for the development of infrastructure in Chennai. This includes the construction of new roads, flyovers, and underpasses to reduce traffic congestion in the city. The budget also allocates Rs. 3,000 crore for the development of the Chennai Metro Rail, which is expected to be completed by 2027.
The budget also focuses on improving the city’s water supply and drainage system. The government has allocated Rs. 1,500 crore for the construction of new water treatment plants and the upgrading of existing infrastructure. Additionally, Rs. 500 crore has been allocated for the development of stormwater drains to prevent flooding in the city.
Urban Development
The budget places a strong emphasis on urban development in Chennai, with a focus on creating a more livable and sustainable city. The government has allocated Rs. 2,000 crore for the development of public spaces, including parks, gardens, and playgrounds. This includes the construction of a new park in the Thiru-Vi-Ka Complex, which will be developed on a 10-acre plot.
The budget also allocates Rs. 1,000 crore for the development of affordable housing in Chennai. This includes the construction of new apartments and houses for low-income families, as well as the upgrading of existing housing stock.
Welfare Initiatives
In addition to infrastructure and urban development, the budget also includes several welfare initiatives aimed at improving the lives of Chennai’s residents. The government has allocated Rs. 1,500 crore for the development of healthcare infrastructure in the city, including the construction of new hospitals and the upgrading of existing facilities.
The budget also allocates Rs. 500 crore for the development of education infrastructure in Chennai, including the construction of new schools and the upgrading of existing facilities. Additionally, Rs. 1,000 crore has been allocated for the development of women’s empowerment initiatives, including the establishment of new women’s empowerment centers and the upgrading of existing facilities.
Other Key Announcements
In addition to the key announcements aimed at transforming Chennai, the budget also includes several other notable initiatives. These include:
- The allocation of Rs. 1,000 crore for the development of the Chennai Airport, including the construction of new terminals and the upgrading of existing infrastructure.
- The allocation of Rs. 500 crore for the development of the Chennai Port, including the construction of new facilities and the upgrading of existing infrastructure.
- The allocation of Rs. 1,000 crore for the development of the city’s public transportation system, including the introduction of new buses and the upgrading of existing infrastructure.
- The allocation of Rs. 500 crore for the development of the city’s solid waste management system, including the construction of new waste processing facilities and the upgrading of existing infrastructure.
Conclusion
The Tamil Nadu budget for 2025-26 is a significant step forward in the state’s efforts to transform Chennai into a smart city. The budget’s focus on infrastructure development, urban development, and welfare initiatives is expected to have a positive impact on the city’s residents and businesses. With its emphasis on creating a more livable and sustainable city, the budget is a clear indication of the DMK government’s commitment to the development of Chennai.
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