Tamil Nadu Budget 2025-26: Rs 3,500 Crore for Kalaignar Kanavu Illam Scheme

The Tamil Nadu government led by M.K. Stalin presented its 2025-26 Budget on Friday as the fifth budget under the DMK's rule since taking power in 2021. This budget introduced by Finance Minister Thangam Thenarasu contains specific funding for underprivileged communities alongside welfare schemes and infrastructure development which also supports cultural initiatives before an upcoming election.

The government allocated significant funds to housing budgets. The Kalaignar Kanavu Illam housing scheme built by former Chief Minister M. Karunanidhi has received a budget of Rs 3,500 crore to make one lakh underprivileged families homeowners through housing construction. 

The government launched this project to eliminate rural slums by constructing eight lakh concrete houses across Tamil Nadu before 2030. One lakh houses built throughout all districts during the previous year demonstrate strong commitment from the government to increase living standards for disadvantaged people.

The budget includes funds for demolishing houses constructed prior to 2001 under different rural government schemes benefiting marginalized communities. The government will invest Rs 600 crore to reconstruct 25,000 housing units during 2025-26 for creating safer and more durable homes. School education in India receives Rs 2,500 crore through educational lending to 1 lakh college students accompanied by Rs 1,000 crore for strengthening public school facilities.

The budget focuses heavily on expanding main welfare initiatives especially the Magalir Vidiyal Payanam Bus Travel Scheme that offers women free bus fares. The scheme now reaches 65% of total users from its initial 40% starting point and produces 642 crore trips that benefit 50 lakh women each day. The State Planning Commission study discovered that women generate a monthly saving of Rs 888 through the scheme thus demonstrating both social and economic value. For the current fiscal year 2025-26 the government has dedicated Rs 3,600 crore as subsidy to support this scheme while student bus fare subsidies received Rs 1,782 crore and diesel subsidies received Rs 1,857 crore to reach a total of Rs 12,964 crore for transport sector funding.