Published Feb 01, 2026 | 6:42 PM ⚊ Updated Feb 01, 2026 | 6:42 PM
Tamil Nadu Chief Minister MK Stalin.
Synopsis: The Union Budget has completely ignored the interests of Tamil Nadu, Stalin said. It contained no major schemes benefiting the poor, women, farmers or marginalised sections
Tamil Nadu Chief Minister MK Stalin expressed disappointment over the Union Budget 2026-27, which he said offered nothing for the state.
In a statement issued in Chennai after Union Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget on Sunday, 1 February, Stalin said he had hoped that the BJP-led Union government would pay attention to Tamil Nadu and listen to its rightful demands, especially in an election year.
“However, the Union Budget for 2026–27 presented in Parliament has completely ignored the interests of Tamil Nadu. It contains no major schemes benefiting the poor, women, farmers or marginalised sections,” he said.
Stalin said, despite consistently pointing out that a developed state like Tamil Nadu was being neglected in the tax devolution process, the demand for increasing the state’s share of the total tax revenue was once again ignored.
“While several states had demanded that the share of states in the total tax revenue be increased from 41 percent to 50 percent, this demand has once again been ignored, and the share has been retained at 41 percent,” he said.
Despite Tamil Nadu being the second largest contributor to India’s economy, the 16th Finance Commission has allocated a lower share of tax devolution to Tamil Nadu compared to other developed states, he noted.
Tamil Nadu’s share has been projected to be only 4.097 percent for the next five years, which would result in an annual loss of around ₹5,000 crore compared to similarly placed states. The long-standing injustice faced by Tamil Nadu in fiscal devolution has not been corrected even by the 16th Finance Commission.
Additionally, due to recent changes in GST compensation arrangements, Tamil Nadu’s share in Union taxes has been reduced by around ₹1,200 crore this year.
“Funds for key schemes have also been sharply cut. The Jal Jeevan Mission, for which Tamil Nadu has been demanding ₹3,112 crore pending dues, has seen its allocation reduced from ₹67,000 crore in last year’s Budget Estimates to just ₹17,000 crore in the Revised Estimates, indicating an attempt to stall the scheme altogether,” Stalin stated.
The chief minister also said that the Pradhan Mantri Gram Sadak Yojana allocation, too, has been reduced from ₹19,000 crore to ₹11,000 crore. The rural housing scheme allocation has also been cut from ₹35,832 crore to ₹32,500 crore.
Reducing the last year’s allocation of ₹10,831 crore for the PM Internship Scheme to just ₹526 crore in the Revised Estimates for 2025–26 was a major setback, he said.
It suggested that “the scheme has largely failed,” he further stated.
Stalin noted that no new welfare schemes for Tamil Nadu have been announced in the Budget.
“There has also been no announcement regarding the pending ₹3,548 crore under the Samagra Shiksha scheme and ₹3,112 crore under the Jal Jeevan Mission, despite Tamil Nadu’s strong performance in implementing these programmes,” he added.
The absence of any new schemes for Tamil Nadu in this Budget again exposed the step-motherly attitude of the Union government towards the state, Stalin alleged.
Even the customary quotation from the Tirukkural, usually included in the Union Finance Minister’s Budget speech, was omitted this time, he added.
