Chennai: Tamil Nadu sharply expanded its subsidy spending in 2024-25 by about 39 % compared to the previous year.The biggest increases came from welfare payments to women under Kalaignar Mahalir Urimai Thittam and the free bus travel scheme. In addition, a large electricity bill borne by the state on behalf of farmers also contributed to the increased susbidy spending. At the same time, allocations for natural calamity relief were cut to a fraction of the previous year. According to the Finance Accounts, the state’s spending under the subsidies head rose to ₹52,603 crore in the year ended March 2025, an increase of about 39% from ₹37,749 crore in 2023-24. A single payment accounted for nearly half of the overall ₹14,854 crore rise in total state subsidies. There was a payment of ₹6,916 crore by the state agriculture department to the Tamil Nadu Electricity Board (TNEB) for the usage of electric pumps by farmers, a head that showed no spending in the previous year. Much of the remaining increase came from the Department of Special Programme Implementation, which implements the DMK govt’s key flagship schemes, including cash assistance to women under the Kalaignar Magalir Urimai Thittam and monthly cash assistance to higher secondary school students under the Tamil Pudhalvan scheme. In contrast, spending on relief related to natural calamities fell sharply. Expenditure under this head dropped to ₹1.46 crore in 2024-25 from ₹523 crore the year before. This includes relief to small and marginal farmers for crop loss due to floods. Notably, TN chief minister MK Stalin in November 2025 alleged that the union govt did not release ₹800 crore towards disaster relief to TN, and this account confirms how the delay affected farmers. The financial accounts also flag large sums that were released but not yet spent or fully accounted for. As of March 31, 2025, ₹4,976 crore lay unspent in Single Nodal Agency (SNA) bank accounts for centrally sponsored schemes, while ₹565 crore remained unspent in bank accounts operated by 8,005 drawing officers.
