The Tamil Nadu Government has announced a major push for affordable housing and urban development in the 2026–27 State Budget, introducing several initiatives aimed at improving housing access, modernising urban infrastructure, and streamlining development approvals across the state. One of the key announcements is the launch of a new affordable housing scheme that will benefit middle-income families as well as economically weaker sections (EWS). Under the scheme, 1 lakh affordable homes will be constructed over the next seven years through the Public-Private Partnership (PPP) model. To support the programme, the government has proposed an investment of Rs15,000 crore through the PPP model. Additionally, Rs3,500 crore has been allocated as Viability Gap Funding (VGF) to improve project viability and encourage greater private sector participation in affordable housing projects. The government also highlighted the progress of its ongoing affordable housing initiatives across Tamil Nadu. At present, 24,131 affordable housing units are under construction, while work on an additional 14,194 units is scheduled to begin during the current financial year. In another significant announcement, the government has approved the redevelopment of ageing and dilapidated residential tenements across the state. A budget allocation of Rs1,253 crore has been earmarked for the project, which aims to replace unsafe structures with modern residential buildings and improve the quality of living for residents. As part of its digital governance initiatives, the government has allocated Rs40 crore to establish an AI-powered integrated planning and governance platform. The new system is expected to simplify and automate planning permission approvals, reduce processing time, improve transparency, and enhance coordination among various government departments involved in urban development. To support long-term urban growth, the government has also announced Rs25 crore for preparing a Comprehensive Master Plan for the expanded Chennai Metropolitan Area. Covering approximately 5,904 square kilometres, the master plan will provide a strategic roadmap for future residential, commercial, industrial, transportation, and infrastructure development while incorporating globally accepted urban planning practices. The latest budget announcements are expected to strengthen Tamil Nadu's affordable housing sector, accelerate urban infrastructure development, improve digital governance, and create more housing opportunities for middle-income families and economically weaker sections in the coming years.