"Interests of Tamil Nadu completely ignored": CM Stalin on Union Budget

Chennai (Tamil Nadu) [India], February 1 : Tamil Nadu Chief Minister MK Stalin on Sunday strongly criticised the Union Budget 2026-27, stating that it has once again ignored the interests of Tamil Nadu and failed to address the needs of any section of society.
"The Union Government's Budget, which was eagerly awaited, has delivered an even greater disappointment than usual," Stalin said in a statement.
Referring to the upcoming Tamil Nadu Legislative Assembly elections, the Chief Minister said, "At a time when the Tamil Nadu Legislative Assembly elections are fast approaching, we had hoped that at least this year Tamil Nadu would be visible to the eyes of the Union BJP Government, and that our rightful voice would be heard. Shattering that expectation, the Union BJP Government has once again delivered disappointment."
Criticising the overall budget framework, Stalin said, "In the Budget for the year 2026-27 presented today in Parliament by the Hon'ble Union Finance Minister, the interests of Tamil Nadu have been completely ignored. Moreover, the Budget contains no major schemes that would benefit any section of society, be it the poor, women, farmers, or marginalised communities."
On tax devolution, he stated, "We have consistently and strongly maintained that, in the system of tax devolution to states, the Union Government has continued to neglect developed states such as Tamil Nadu. Once again, the demand raised by Tamil Nadu and several other states to increase the states' share in total tax revenues from 41 per cent to 50 per cent has been ignored."
"The announcement that the states' share will continue to remain at just 41 per cent is deeply disappointing," he added.
Raising concerns over the Finance Commission allocations, Stalin said, "It is highly regrettable that Tamil Nadu, which has the second-largest economy in the country and makes a significant contribution to national economic growth,h has been allotted a lower share of financial devolution compared to other developed states."
"It is understood that Tamil Nadu's share of tax devolution will remain at a meagre 4.097 per cent over the next five years," he said, adding, "Preliminary estimates indicate that this would result in an annual loss of approximately Rs 5,000 crore compared to other comparable states."
Highlighting GST-related concerns, the Chief Minister said, "It is also condemnable that, at a time when the Goods and Services Tax (GST) reforms have already adversely affected states' revenues, Tamil Nadu's share in Union taxes has been reduced by around Rs 1,200 crore this year."
On welfare schemes, Stalin said, "While we have repeatedly emphasized that the Union Government has not released the Rs 3,112 crore sought by Tamil Nadu under the Jal Jeevan drinking water scheme, it is alarming that the allocation for this scheme estimated at Rs 67,000 crore in the 2025-26 Budget Estimates has now been slashed to a mere Rs 17,000 crore in the Revised Estimates."
"This appears to be nothing short of an attempt to completely stall the scheme," he added.
He further pointed out reductions in other flagship schemes, saying, "After announcing an allocation of Rs 19,000 crore in the previous Budget for the implementation of the Prime Minister's Rural Roads Development Scheme, the Revised Estimates now provide only Rs 11,000 crore."
"Likewise, for the Prime Minister's rural housing scheme, the allocation has been reduced from the announced Rs 35,832 crore to Rs 32,500 crore," he said.
Commenting on the PM Internship Scheme, Stalin said, "While Rs 10,831 crore was announced for this scheme in last year's Budget, the Revised Estimates for 2025-26 allocate a paltry Rs 526 crore. This clearly indicates that the scheme has ended in a major failure."
Expressing disappointment over pending dues, he said, "There has been no announcement regarding the non-release of Rs 3,548 crore under the Samagra Shiksha scheme due to Tamil Nadu's refusal to implement the three-language policy, nor about the pending Rs 3,112 crore under the Jal Jeevan Mission."
"The absence of any new schemes specifically for Tamil Nadu in this Budget exposes, in the clearest possible terms, the step-motherly attitude with which the Union Government continues to treat the state," Stalin added.
He also noted, "Even the customary inclusion of a Thirukkural verse in the Union Finance Minister's Budget speech is missing this time. There are no major schemes for Tamil Nadu."
Concluding his statement, the Chief Minister said, "In total its disappointment!"
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2026-2027 in Parliament today.
Finance Minister announced that Dedicated Rare Earth Corridors will be established, to support the mineral-rich States of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing.