The budget session of the Tamil Nadu Assembly will begin on March 26 with the presentation of budget for 2012-13 by Finance Minister O. Panneerselvam.

The session assumes significance as it comes in the backdrop of the changed political scenario in which the AIADMK's erstwhile allies, including Vijayakant's Desiya Murpokku Dravida Kazhagam (DMDK) and CPI (M), have completely moved away from it.

The AIADMK, which has a massive majority, has only a few minor parties as its friends in the House. In the previous session that followed the Governor's address in February, the DMDK turned critical of the ruling party, resulting in a direct war of words between Chief Minister Jayalalithaa and Mr Vijayakant.

The Chief Minister challenged Mr. Vijayakant to contest alone in the Sankarankoil by-election. After some initial hesitation, Mr Vijayakant picked up the gauntlet and fielded his party candidate in the by-election.

While the outcome of the by-election can be a tool in the hands of the ruling party to assert its unchallenged position as of now, the US- sponsored resolution against Sri Lanka and India's stand on the issue, the fate of the Kudankulam Nuclear Power Project in the wake of report submitted by an expert committee are likely to dominate the proceedings of the House.

As far as the resolution against Sri Lanka is concerned, there is unanimity among all political parties in the State. The session will be preceded by the release of the State government's Vision 2025 and a number of policy documents on industry and land pooling on March 22.