The Tamil Nadu government's maiden Revised Budget for 2026-27 triggered a political showdown on Wednesday, with DMK president and former Chief Minister M.K. Stalin dismissing it as a "damp squib" that lacked originality and failed to fulfil key election promises, even as the C. Joseph Vijay-led TVK government unveiled an ambitious roadmap centred on artificial intelligence, industrial growth and social welfare.
Presenting the Budget in the Assembly, Finance Minister N. Marie Wilson announced the establishment of 'Arivagam', a dedicated Artificial Intelligence and innovation city aimed at transforming Tamil Nadu into a hub for AI, deep-tech industries and technology-driven investments. The proposed city will house an AI university, an international skill development centre, a semiconductor hardware testing laboratory and innovation incubators. The government has allocated ₹5 crore for a feasibility study.
The Budget also proposed a new Tamil Nadu Industrial Policy focused on innovation, emerging industries, sustainable development and boosting exports.
In the healthcare sector, the government announced 1,000 Mobile Geriatric Treatment Centres to provide free medical check-ups, medicines and physiotherapy services to senior citizens in village panchayats. The programme has been allocated ₹33 crore.
For the transgender community, the government proposed 'Aran' shelter homes in five districts to provide accommodation, food, counselling and rehabilitation support. It also announced short-stay homes in 15 districts for transgender persons travelling for education, employment, medical treatment, examinations and training.
Reacting to the Budget, Stalin said the public had expected major announcements from the new government but had been left disappointed.
"People expected it to be a 'blast', but it turned out to be a 'waste'. It is a remake of the 'Dravidian Model' government's Budget," he said, accusing the TVK government of repackaging schemes introduced during the previous DMK regime.
Stalin alleged that the Budget ignored pressing issues such as farmers' concerns, electricity billing and the rising cost of living. He also criticised the government for remaining silent on major poll promises, including ₹2,500 monthly assistance for women, ₹4,000 for unemployed youth, six free LPG cylinders and a complete crop loan waiver.
Leader of the Opposition Udhayanidhi Stalin also accused the government of merely renaming several DMK-era schemes instead of introducing new initiatives. He said the DMK would scrutinise the Budget proposals during the Assembly session and raise the issue of unfulfilled electoral commitments.
The Budget debate comes amid heightened political tensions, with Udhayanidhi also referring to his recent detention by police in connection with a case linked to remarks allegedly made during a protest in Thanjavur. The DMK has accused the government of using police action to weaken the Opposition ahead of the Budget session.
The TVK government's first Budget has set the stage for a fierce political contest, with the ruling party highlighting its technology-driven development agenda and expanded welfare initiatives, while the Opposition argues that it falls short of the promises made to voters.
