The Tamil Nadu government unveiled its Budget for 2025 on Friday, highlighting significant support for women, youth, and government employees just one year ahead of elections. Finance Minister Thangam Thennarasu made three key announcements toward the end of the nearly 2.5-hour budget presentation, focusing on measures that would impact a substantial segment of the state’s population.
In his address, the Finance Minister responded to ongoing demands from government employees and teachers for the restoration of the Earned Leave (EL) Surrender system, which had been halted during the Covid-19 pandemic. This system, effective from April 1, 2026, will enable government employees and teachers to encash up to 15 days of earned leave. This reinstatement is expected to benefit over 900,000 government workers in the state, which currently has around 1 million employees and teachers. The Finance Minister assured that the necessary government orders regarding this change would be issued promptly.
Continuing the legacy of former Chief Minister M. Karunanidhi, who enacted equal property rights for women in 1989, the budget announced measures aimed at enhancing women’s ownership of financial assets and promoting their financial independence. Starting April 1, 2025, the registration fee for all immovable properties, including homes, plots, and agricultural land valued up to ₹10 lakh, will see a one-percentage-point reduction if registered in a woman’s name. The Finance Minister noted that approximately 75 percent of current registrations would qualify for this concession. This initiative comes as the state anticipates a 14 percent increase in revenue from stamp duties and registration fees for the upcoming financial year.
Additionally, the state has allocated ₹3,600 crore to the ‘Vidiyal Payanam’ scheme that facilitates free bus travel for women. The ‘Kalaignar Magalir Urimai Thittam,’ which directly transfers ₹1,000 monthly to the bank accounts of over 11.5 million women, received an allocation of ₹13,807 crore. Furthermore, the government aims to provide ₹37,000 crore in bank loans to Self-Help Groups in the next financial year. To promote women entrepreneurship, the budget has earmarked ₹225 crore over the next five years for skill development training and access to bank loans of up to ₹10 lakh, accompanied by a 20 percent subsidy. An investment of over ₹350 crore has also been designated to expand the network of hostels for working women and girl students across Chennai and other major cities.
In response to the shifting job market influenced by Artificial Intelligence (AI), the budget includes initiatives to equip young people with advanced technical skills, allocating ₹2,000 crore for this purpose in FY26. The government plans to provide high-tech devices, such as tablets or laptops based on student preferences, to 20 lakh college students across various disciplines including arts, science, engineering, agriculture, and medicine, over the next two years, as part of this scheme.
