Announcing the cabinet decisions in an address on Jaya TV, Chief Minister Jayalalithaa said the hikes were 'unavoidable' as state public sector units were on the verge of collapse.
She charged the Centre with meting out "step-motherly treatment" to non-Congress ruled states and neglecting them.
She said the state electricity regulatory authority would soon decide about the power tariff as Tamil Nadu Electricity Board was facing mounting losses of Rs 53,000 crore.
Bus fares were hiked 28 paise per km to 42 paise for moffussil services, 56 paise from the present 32 paise for express bus services, 60 paise from the present 38 for semi delux services and 70 paise from 52 paise for delux services.
Milk prices have been hiked by Rs 6.25 per litre from Rs 17.75 to Rs 24. The decisions on the hike were taken at a cabinet meeting today, she said.