Tamil Nadu allocates Rs 16.38 crore to schools as special fee compensation; Chennai gets maximum

From Rs 17.77 crore earmarked under the budget, the Tamil Nadu government has sanctioned Rs 16,38,08,846 as special fee compensation to government, government-aided, and Kallar Reformation Schools in the districts of Madurai, Theni, and Dindigul, for the academic session 2025-26, with Chennai district getting the highest allocation. The move aims to compensate schools for the loss incurred due to the abolition of special fees collected from students of Classes 6 to 12.

Following the allocation, the Directorate of School Education has directed Chief Educational Officers (CEOs) to immediately distribute the allocated funds to government schools under their district, excluding those run by local authorities. In case, additional funds are required, the officers have been asked to submit class-wise data, subject-wise too in case of Classes 11 and 12.

They have been instructed to follow the IFHRMS system for the expenditure and record the transactions under the specified budget head 2202-02-109-BA 35102. Additionally, the officers have to submit the utilization certificates for the distributed amounts along with the treasury reconciliation statements from the previous year, and the unused amounts in case an excess fee has been allocated, to the Directorate by October 31, 2025.

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Tamil Nadu Fund Allocation 2025–2026

The district-wise funds allocated to schools as special compensation fee for the academic session 2025-26 are mentioned below.

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From the academic year 2008–09 onwards, the Tamil Nadu government has been providing a special fee compensation grant to schools to offset the financial loss incurred due to the cancellation of the special fee previously collected from students studying in Tamil or English medium from Class 6 to Class 12 in government and government-aided higher secondary or high schools under the school education department.

The grant is also being provided to Kallar Reclamation higher and higher secondary schools functioning in the Madurai, Theni, and Dindigul districts.