Free LPG to grants for jobless, Vijay’s poll sops may spike Tamil Nadu’s welfare bill by 52%
This could severely restrict the new government's room for investments needed to fulfil its biggest promise: job creation for youth.
Tamilaga Vettri Kazhagam (TVK) chief Vijay. From Rs 2,500 every month to women heads of households to six free LPG cylinders per household every year, a grant of Rs 4,000 per month for 10 lakh unemployed graduates — and much more.
As film star-politician Vijay’s TVK prepares to rule Tamil Nadu following its incredible election victory, the focus is now on the expansive promises listed in its manifesto, which builds upon, and even exceeds, commitments made by previous state governments (see chart).
Given the TVK’s manifesto and official state data, the new government’s projected annual expenditure on welfare spending alone would be close to Rs 1 lakh crore — an increase of over 52% from the Rs 65,000 crore spent by the previous DMK government on welfare schemes and subsidies in 2025-26.
To put these numbers in perspective, TVK’s projected welfare expenditure equals approximately one-third of Tamil Nadu’s total revenue receipts of Rs 3.31 lakh crore, as per the 2025-26 state budget.
That could put a significant burden on the budget, squeezing space for capital expenditure in a state that already carries a debt of 26% of GSDP. If financed entirely through higher expenditure without new revenues, this could push the fiscal deficit from the budgeted 3% of GSDP in 2025-26 to about 3.5-4.0%.
This does not count the projected spending on a cooperative farm loan waiver and legally guaranteed MSP procurement of paddy and sugarcane that have been promised in the manifesto and for which comparable state data is not available.
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Beyond these, there are several other announcements that could push up the state’s revenue spending, such as a rise in police salaries from Rs 18,500 per month to Rs 25,000, a Rs 1,000 monthly hardship allowance and permanent jobs for temporary teachers, nurses and staff who have completed five years in service.
All of this could severely restrict the new government’s room for investments needed to fulfil its biggest promise: job creation for youth.
More so, because the TVK’s manifesto does not lay out an elaborate roadmap to find new avenues for revenue generation. It merely says: “By reducing the growing debt burden, increasing revenue without imposing any additional tax on the people, ensuring efficient and prudent expenditure, and creating new sources of income, Tamil Nadu will be transformed into a financially self-sufficient state.”
The manifesto also speaks of setting up an AI Ministry and an AI city to attract leading companies from around the world, but does not spell out what investments it will make to realise this. Building an AI ecosystem could involve setting up data centres, allocating adequate power and offering tax incentives.
What the manifesto does make clear is that TVK has not attempted to disrupt Tamil Nadu’s established policy framework. Instead, it leans heavily into it — offering expansive, targeted welfare especially for women, while addressing every major electoral constituency, from youth to farmers to state employees.
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