Gold coins, rings, goats: Inside TVK government’s debut Tamil Nadu Budget

Tamil Nadu Finance Minister N Marie Wilson tabled the TVK government’s first-ever budget on Wednesday, setting aside more than Rs 1,000 crore for gold coin, ring and milch cow gifts to women across the state.

The budget, presented by the C Joseph Vijay-led administration, tries to walk a fine line — rolling out the populist promises made ahead of the 2026 Assembly elections in phases, while also claiming to stay within fiscal limits.

What’s new in the budget

The government said it was working on new ways to raise revenue, even as it admitted the state’s finances were under strain.

One such move is an additional privilege fee on liquor manufacturers, expected to bring in up to Rs 1,000 crore a year in extra revenue. The budget also targets younger citizens, with branded bicycles and laptops planned for Gen Z and Gen Alpha.

Wilson credited Chief Minister Vijay with putting a complete stop to the practice of “cut” — a local term for kickbacks — in government tenders, calling it part of the government’s push for reforms, transparency and anti-corruption action.

On policy, the government repeated its stand against NEET and its demand to raise the water level of the Mullaiperiyar dam. Wilson asked the Centre to scrap the medical entrance exam and go back to admissions based on Class 12 marks.

The gold and gifts schemes

Wilson framed the Chief Minister’s welfare push in personal terms, saying Vijay “always stands by every women in Tamil Nadu as their elder and younger brother.”

She said: “Marriage is one of the most joyous occasions in a woman’s life. Our chief minister, who considers every women in Tamil Nadu as a member of his own family, will present an eight gram gold coin and a silk saree as ‘Annan Seer’ (elder brother’s gift) to them on their joyous wedding day.” This scheme has been allotted Rs 812 crore in the revised budget estimates.

Under the “Thai Maaman Thanga Mothiram Thittam,” every child born in a government hospital will get a 1-gram gold ring, at a cost of Rs 560 crore. Wilson said maternal and child healthcare remains a core pillar of the state’s public health system.

The “Vetri Magalir Goat Rearing Scheme” will give a 100 per cent subsidy for five goats or sheep to destitute widows, deserted women, transgender persons and persons with disabilities — expected to benefit around 30,000 people, at a cost of Rs 110 crore.

Other announcements include branded bicycle distribution, AI skill training for youth, and specialised urban housing programmes.

The state’s finances

Wilson did not shy away from painting a grim financial picture. “The fiscal position of the State is in the red, and we have been handed a treasury box that is overburdened with debt and sub optimal income with leaking holes,” she said, adding that the government would need at least two years to bring the state back to fiscal discipline.

The key numbers from the revised budget estimates for 2026-27:

– Revenue deficit: Rs 55,775 crore
– Fiscal deficit: Rs 1,21,819 crore (3.00 per cent of GSDP)
– Total planned borrowing: Rs 1,73,445 crore
– Repayment: Rs 51,971 crore
– Outstanding liabilities (as on March 31, 2027): Rs 10,98,768 crore, or 27.01 per cent of GSDP

Finance Secretary MA Siddique said the budget balances welfare spending with physical capital expenditure, and stressed that no existing welfare scheme had been cut. Total welfare allocation for the year is estimated between Rs 15,000 crore and Rs 18,000 crore.

Opposition reaction: ‘Zero’ from both DMK and AIADMK

Both the DMK and its Dravidian rival AIADMK rejected the budget, each giving it a “zero” rating.

DMK President MK Stalin said the budget lacked original thinking and failed to deliver on promises.

Leader of the Opposition Udhayanidhi Stalin called it a “big zero,” criticising what he said was a cut in the education budget.

AIADMK General Secretary Edappadi K Palaniswami pointed to the state’s overall debt of Rs 10.98 lakh crore, along with the revenue deficit of Rs 55,785 crore and fiscal deficit of Rs 1.21 lakh crore, as signs of poor financial health.

He said: “In the 85 days since this government took over, not a single new scheme has been introduced. They have completely ignored their election promises, including the Rs 2,500 monthly assistance for women, six free LPG cylinders, Rs 3,000 old-age pension, and the full crop loan waiver,” and demanded a clear roadmap for revenue generation.

Both opposition parties accused the government of largely renaming old schemes instead of introducing the big-ticket promises made before the polls.

(With inputs from agencies)