Chennai: Chief minister M K Stalin called the Union budget 2026-27 was a ‘major disappointment and a reflection of Union govt’s step-motherly treatment of Tamil Nadu’. Stalin said there were no major schemes for the poor, farmers, women or marginalised sections in the budget.
“As the assembly elections draw closer, we hoped at least this year, TN would be visible to the eyes of the Union BJP govt and our voice demanding our rights would be heard. That hope has been dashed,” he said in a statement. TN would face an estimated annual revenue loss of about 5,000 crore over the next five years. Despite being the country’s second-largest state economy and a major contributor to national growth, he said TN received a lower devolution percentage than other developed states. He also flagged GST-related adjustments that reduced TN’s share of Union taxes by about 1,200 crore in the current year, cut in allocation for the Jal Jeevan Mission, the rural road development scheme and rural housing programme. Stalin said there was no announcement on allocation of on pending funds under Samagra Shiksha scheme and accused the Union govt of ‘continuing a step-motherly approach’ towards TN. However, AIADMK general secretary Edappadi K Palaniswami said measures to curb fiscal deficit, boost domestic manufacturing and expand MSME credit would benefit industrial clusters in TN. He said thrust on textile sector would boost production, employment and exports from Tirupur and Karur. The high-speed rail corridors, priority for ayurveda, dairy and livestock sectors would also benefit TN, he said. “The budget provides a strong roadmap for India’s economic progress and will further elevate India’s position as a resilient and powerful economy globally,” EPS said. Welcoming the announcement to establish a cultural heritage centre at the archaeological site of Adichanallur, BJP state president Nainar Nagenthran said the Union govt was continuing efforts to uphold Tamil culture, promote Tamil heritage globally and preserve the ancient legacy of Tamil society. PMK president Anbumani Ramadoss said the allocation of 12.20 lakh crore for capital expenditure, a 10% increase from last year’s 11.21 lakh crore will strengthen infrastructure nationwide while boosting employment and liquidity. TNCC president K Selvaperunthagai called the budget as ‘anti – people’ and alleged that promises on jobs, and minimum support price remain unfulfilled. VCK chief Thol Thirumavalavan said the sharp fall in the stock market showed how big a disappointment the budget was. “The people of TN will teach the BJP alliance an appropriate lesson in the coming elections,” he said.
