State Budget evokes mixed reaction

The Tamil Nadu Budget 2025-26, presented by Finance Minister Thangam Thennarasu in the Assembly on Friday, had numerous innovative schemes for different sectors, but it had nothing tangible for the industrially backward southern districts, said industry leaders and trade body members on Friday.

Agri and All Trade Chamber president S. Rethinavelu said the State was the first to release Economic Survey Report before presenting the Budget. It not only helped the Finance Minister identify the sectors in need of special attention for introduction of innovative schemes to take the State in the growth trajectory but also the stakeholders in society to suggest appropriate demands for them.

The special mention of allocation of ₹3,915 crore for Industries, Investment Promotion and Commerce Department was welcome. The new city proposed on over 2,000 acres near Chennai and laying of rural roads would bring in robust growth in many districts and Chennai, but pro-active announcements to take the southern districts forward were missing in the Budget, he said.

MADITSSIA president A. Kodeeswaran thanked the Minister for the commitment to provide ₹2.5 lakh-crore bank loans to 10 lakh micro and small industries in the current year. The announcement of establishment of SIDCO industrial parks in nine locations and allocation of ₹366-crore fund for the one in Karuthampuliyampatti in Madurai would encourage more neo-entrepreneurs.

There was no announcement for implementation of the Tamil Nadu Credit Guarantee Scheme, which was previously announced in the Budget. “We had requested that the interest subsidy for loans provided through the TIIC be given upfront, but there was no announcement to that effect. Similarly, there was no announcement or allocation of funds for Madurai-Thoothukudi Industrial Corridor,” he added.

Tamil Nadu Chamber of Commerce and Industry president N. Jegatheesan said though there were many welcome announcements such as a new airport in Rameswaram, a footwear industrial park at Melur and one per cent reduction in deed registration fee on houses/plots worth ₹10 lakh purchased in the name of women, it was disappointing that the government’s share of 20% of the ₹11,368-crore project estimate for Madurai Metro Rail project had not been allocated. Madurai had not been declared the second capital of the State, which had been a log-felt demand of the people, he said.

Sourashtra Chamber of Commerce president K.K. Dinesh said making huge allocation for infrastructure in government schools and allocation of funds for higher education would encourage more students to have access to education. The government should have focussed more on health, transport, tiny and small scale sectors too.

Ramanathapuram District Chamber of Commerce president Asmabagh Anvardeen said the announcement to establish an airport in Rameswaram was a non-starter. There was nothing concrete for Ramanathapuram district. “We expected more funds allocation for the infrastructure development in the district.”

American College Professor C. Muthuraja said the Budget had come in an environment of Central-State financial crisis, high debt burden and many economic and financial problems. Still, it aimed at providing everything to everyone. Projects had been announced to reduce economic inequalities, increase income and employment, and achieve widespread development, he added.