Amid great expectations, the new government that came to power with the slogan of “change” has presented the budget for 2026-27. Already, with the state’s finances said to be under pressure, experts were looking at this budget with the question of how far this government would maintain balance without creating additional debt burden, while the public was waiting with the question of which of the promised commitments would be announced. Whether answers were found to these two questions has now become yet another question.
A state’s budget is not merely an income-and-expenditure statement. It is key planning, from generating steady revenue to driving economic growth. Welfare schemes cannot be sustained for long without revenue. For revenue to grow, investments must increase. For investments to increase, industries must grow. Only through that will jobs be created. This is the path to sustainable economic growth.
From that perspective, greater importance could have been given to the micro, small and medium enterprises (MSME) sector, which serves as the backbone of Tamil Nadu’s growth. If the announcement had included additional investment incentives, technological upgradation, market expansion, and measures to strengthen access to finance for this sector, which makes the biggest contribution to the state’s manufacturing, exports, and employment, it would have supported long-term growth.
At the same time, initiatives such as the effort to create an artificial intelligence city and the skill development institute for the textile sector reflect a vision aimed at the future economy. The additional emphasis given to sports and youth welfare is also a better approach to human resource development.
However, it is only three factors that will determine the economic success of future Tamil Nadu: growth, employment, and people’s quality of life. Projects centered on these are what matter. Only if administrative changes and measures to address revenue losses yield results will Tamil Nadu retain its reputation as a rapidly growing state.
The goal of transforming Tamil Nadu into a $1.5 trillion economy is nothing but the combined outcome of job creation, industrial expansion, productivity improvement, investment attraction, and human resource development. The government must act without falling behind in any of these areas. There is still time. Let us hope the expectations will be fulfilled!
-The Author