For most of the South, the budget has reinforced a long-standing grievance: despite being economic powerhouses, these states see themselves as systematically ignored in national financial planning
Published Feb 02, 2025 | 12:24 AM ⚊ Updated Feb 02, 2025 | 12:24 AM
Union Budget 2025: Kerala, Karnataka, Tamil Nadu and Telangana lash out, Andhra Pradesh sees promise (@rashtrapatibhvn on X)
The Union Budget 2025 has sparked widespread discontent across southern states, with leaders from Kerala, Karnataka, Tamil Nadu and Telangana, expressing concerns over being sidelined.
Amid the outcry, Andhra Pradesh Chief Minister N. Chandrababu Naidu emerged as a lone voice of approval, welcoming the budget’s developmental focus. However, for most of the South, the budget has reinforced a long-standing grievance: despite being economic powerhouses, these states see themselves as systematically ignored in national financial planning.
From Kerala’s demand for a special package, to Karnataka’s frustration over unfulfilled tax devolution expectations, the budget has been met with sharp criticism.
Tamil Nadu leaders slammed it as an “election-oriented document,” while Telangana termed it a “donkey’s egg” for failing to deliver on long-standing promises.
Even Karnataka, a major contributor to the national economy, found itself left out, adding to the perception that the South is being financially punished for political reasons.
As allegations of favouritism toward election-bound states gain traction, the budget debate has once again underscored the North-South divide in Indian fiscal policymaking.
The Union Budget 2025 has once again left Kerala empty-handed, deepening the state’s financial woes and sparking political outrage across party lines.
Despite Kerala’s repeated pleas for a ₹24,000-crore special package to overcome severe cuts in central allocations and tide over its financial crisis, the budget failed to allocate a single rupee to the state’s pressing needs.
The state government had sought ₹2,000 crore for Wayanad, which suffered catastrophic landslides on July 30, 2024, along with ₹4,500 crore for climate change mitigation and ₹5,000 crore for the Vizhinjam seaport project.
Additionally, a ₹1,000-crore special assistance was requested to tackle the rising incidents of human-wildlife conflicts.
However, all these demands were met with silence in the Union Budget.
Chief Minister Pinarayi Vijayan strongly condemned the budget, calling it a “blatant attack on federalism.”
“This is not an economic document; it is a political one, selectively rewarding some states while punishing Kerala for its progress. No aid for Wayanad, no AIIMS, and no support for Vizhinjam. Our rightful borrowing limits have been curtailed, industries sidelined, and farmers neglected. This is extremely disappointing and unfortunate,” he said.
Leader of the Opposition V D Satheesan echoed similar sentiments, stating that the Union government had shown “gross neglect” towards Kerala.
“Even the Wayanad package was not sanctioned. The name Kerala is not even mentioned in the budget. There is no relief for the agricultural or industrial sectors, nor any effective measures to address unemployment. It’s nothing but an election-oriented gimmick,” he remarked.
Meanwhile, BJP leader and former Union Minister Rajeev Chandrasekhar defended the budget, calling it a continuation of Prime Minister Narendra Modi’s decade-long reforms.
“The results of our development efforts are visible today—tax cuts, increased income for salaried workers, and massive infrastructure investments. This budget ensures prosperity for all sections of society,” he claimed.
With no major financial relief and critical projects overlooked, the budget has reinforced Kerala’s long-standing grievance of being sidelined in national fiscal planning.
The Union Budget 2025 has triggered sharp reactions in Karnataka, with Chief Minister Siddaramaiah accusing the Centre of ignoring the state’s interests while favouring others like Andhra Pradesh and Bihar.
Despite being the second-highest tax-paying state, Karnataka received no major allocations or new schemes, fuelling allegations of political bias and neglect.
Siddaramaiah called the budget “disappointing” and “detrimental” to Karnataka, claiming that none of the state’s demands were fulfilled.
“The Centre has once again given us an empty vessel. Not a single Union Minister from Karnataka has spoken up for the state,” he said.
The Chief Minister alleged that the BJP government was punishing states that “oppose Manusmriti and stand for the Constitution.” He also criticised Karnataka’s BJP MPs and Union Ministers for failing to advocate for the state’s interests.
The Chief Minister also accused the BJP government of using the budget as a tool for political revenge.
“Narendra Modi is punishing Karnataka for voting against the BJP in the last Assembly elections. But even 46 percent of voters here supported the BJP in the Lok Sabha polls—he is betraying them too,” he alleged.
Siddaramaiah dismissed the income tax exemption hike to ₹12 lakh, arguing that it would benefit only a small percentage of taxpayers.
“70 percent of Indians earn just ₹100-₹150 a day. This change does nothing for them,” he said.
On the other hand, Karnataka BJP president BY Vijayendra hailed the budget as a “game-changer” that would drive economic growth.
He highlighted key measures such as a ₹5 lakh Kisan Credit Card limit for farmers, a ₹1 lakh crore Urban Development Fund, and the expansion of the Jal Jeevan Mission.
Vijayendra also praised the income tax relief, saying it would boost middle-class savings and investments.
“This budget lays the foundation for a future-ready Bharat. Karnataka will benefit immensely from improved infrastructure, job creation, and economic reforms,” he claimed.
The Union Budget 2025 has sparked strong reactions across Tamil Nadu’s political spectrum, with leaders cutting across party lines expressing disappointment over the state’s continued neglect.
While the increase in the personal income tax exemption limit to ₹12 lakh has been welcomed, leaders have sharply criticised the budget for ignoring key infrastructure projects and failing to address core economic concerns.
AIADMK General Secretary Edappadi K Palaniswami condemned the budget as biased and election-focused, claiming it unfairly favors Bihar while sidelining Tamil Nadu.
“This budget looks more like Bihar’s revenue-expenditure report than that of the Union Government,” he remarked.
He pointed out the absence of special projects for Tamil Nadu, particularly river-linking initiatives and metro rail projects for Coimbatore and Madurai.
Palaniswami also questioned the budget’s effectiveness in tackling youth employment and agricultural challenges.
Chief Minister MK Stalin was even more scathing in his criticism, calling the budget a “betrayal” of Tamil Nadu.
He slammed the Union Government for failing to include any of the state’s major demands, such as new railway lines, highways, and infrastructure investments.
“Tamil Nadu consistently ranks high in economic surveys, yet it is ignored in every budget. If schemes and funds are only given to election-bound states or BJP-ruled regions, why call it a ‘Union’ Budget at all?” Stalin asked.
PMK President Anbumani Ramadoss and AMMK leader TTV Dhinakaran welcomed the tax exemption hike but expressed disappointment over the lack of Tamil Nadu-specific schemes.
Meanwhile, Tamilaga Vetri Kazhagam leader Vijay highlighted key omissions, including the absence of GST reforms, petrol/diesel tax reductions, and job creation initiatives.
He also criticised the privatisation of nuclear energy and called for greater recognition of Tamil Nadu’s ancient Iron Age civilisation through increased archaeological funding.
Andhra Pradesh Chief Minister N Chandrababu Naidu has welcomed the Union Budget, praising its focus on the state’s development.
Expressing gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, Naidu highlighted that the Budget prioritises the welfare of women, the poor, youth, and farmers, while also identifying six key sectors for growth over the next five years.
“The budget marks a significant step towards national prosperity. It serves as a comprehensive and inclusive blueprint, promising a prosperous future for our country. Additionally, it brings tax relief for the middle class, the backbone of our country’s economy. I welcome this budget,” he stated.
Minister of State for Civil Aviation Kinjarapu Rammohan Naidu also praised the budget, calling it a “pro-people, pro-growth Budget that empowers India’s middle class, farmers, youth, and women.”
He emphasised that “with zero tax up to ₹12 lakh, employment generation, and economic reforms, it fuels economic momentum and opportunity for all.”
He further stated that under Prime Minister Narendra Modi’s leadership, the NDA government is ensuring “higher savings, stronger MSMEs, and a robust economy.”
He highlighted key reforms in urban development, finance, and power, calling them a strong foundation for Viksit Bharat.
Congratulating Finance Minister Nirmala Sitharaman, he expressed confidence that the budget is “a decisive step towards a prosperous, self-reliant India.”
Opposition leaders in Telangana have strongly criticised the Union Budget, accusing the BJP-led central government of ignoring the state’s needs and failing to fulfill key promises.
Bharat Rashtra Samithi (BRS) working president KT Rama Rao (KTR) expressed disappointment, stating that Telangana had received “diddly squat” in the budget despite high expectations.
He alleged that the budget was designed with an eye on the upcoming Delhi and Bihar elections rather than a pan-India approach.
“Telangana couldn’t secure any special assistance beyond the mandatory finance devolutions and central grants. The budget also failed to honour the AP Reorganisation Act, 2014, by not allocating funds for the Tribal University,” KTR said.
He further questioned the utility of electing eight Congress and eight BJP MPs from Telangana if they could not secure a single major project.
Echoing similar concerns, Telangana Pradesh Congress Committee (TPCC) president Mahesh Kumar Goud criticised Union Finance Minister Nirmala Sitharaman, calling the budget a Gadida Guddu or “donkey’s egg” (a metaphor for something non-existent in Telugu) for Telangana
“Despite being a Telugu daughter-in-law, Nirmalamma (referring to her husband Parakala Prabhakar, a Telugu economist) did not show love for Telangana. The budget is clearly focused on Bihar elections. BJP continues to discriminate against Telangana,” he alleged.
Goud pointed out that Telangana contributes ₹40,000 crore in GST but has not received corresponding allocations. He also listed pending promises, including railway projects, national status for the Palamuru Rangareddy irrigation project, and the establishment of an IIM and Bayyaram coach factory.
Both leaders demanded that the Centre provide Telangana its due share without political bias.
(Edited by Ananya Rao)
