TN Budget 2025: Budget that counts all

With many of the state-run universities in deep financial crisis, the government seems to have shrugged off its ambivalence in offering grants to these universities. The FM announced that block grant to universities will be enhanced to Rs 700 crore.
The budget also proposed to raise Rs 500 crore for Anna University by tapping into alumni network and partnering with industries to foster research and make the university a globally-recognised one.
While a new city has been planned near Chennai on 2,000 acres, the state’s longest elevated flyover (14.2 km) will be built from Thiruvanmiyur to Uthandi along ECR at a cost of Rs 2,100 crore. The new city will feature a variety of modern amenities, including IT parks, fintech trade zones, research and development centres, high-tech companies, banking and insurance firms, shopping complexes, trade centres, and conference halls.
While a new airport is planned near Rameswaram, the Tamil Nadu Maritime Transport Manufacturing Policy 2025 will drive investments in ship and boat design, hull fabrication, and engine production, creating 30,000 jobs.
Thennarasu also announced a significant increase of 22.4% in the capital expenditure for 2025-26 (Rs 57,231 crore) even though the revised estimates for 2024-25 did not show any marked increase in state’s revenues.
Detailed project reports for metro rail projects on the Avinashi Road and Sathyamangalam Road routes in Coimbatore estimated at Rs 10,740 crore, and for the Thirumangalam-Othakadai corridor in Madurai estimated at Rs 11,368 crore have been submitted for equity contribution from the centre.
Construction work in both the cities will commence after the approval is granted, the FM said. Sources in the corridors of power, however, said that though populist announcements were largely missing in the budget, it would not be surprising if some are made under Rule 110 by the CM during the budget session.
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