Tamil Nadu CM M K Stalin Slams Union Budget 2026-27 as 'Major Disappointment'
Chennai: Chief Minister M K Stalin has strongly criticized the Union Budget 2026-27, labeling it a 'major disappointment' and a clear reflection of the Union government's step-motherly treatment towards Tamil Nadu. In a detailed statement, Stalin expressed deep dissatisfaction with the budget, highlighting the absence of significant schemes for the poor, farmers, women, and marginalized sections.
Dashed Hopes and Revenue Losses
With assembly elections approaching, Stalin noted that there was hope Tamil Nadu would finally gain visibility in the eyes of the Union BJP government. 'That hope has been dashed,' he stated, emphasizing that the state's demands for rights remain unheard. He projected that Tamil Nadu 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.
Stalin pointed out that Tamil Nadu receives a lower devolution percentage compared to other developed states. He also flagged GST-related adjustments that are set to reduce Tamil Nadu's share of Union taxes by approximately 1,200 crore in the current year. Additionally, he criticized cuts in allocations for key schemes:
- Jal Jeevan Mission
- Rural road development scheme
- Rural housing programme
Furthermore, Stalin accused the Union government of continuing a step-motherly approach by not announcing allocations for pending funds under the Samagra Shiksha scheme.
Mixed Reactions from Political Parties
In contrast, AIADMK general secretary Edappadi K Palaniswami welcomed certain budget measures, stating that efforts to curb fiscal deficit, boost domestic manufacturing, and expand MSME credit would benefit industrial clusters in Tamil Nadu. He highlighted that the thrust on the textile sector would boost production, employment, and exports from Tirupur and Karur. Palaniswami also noted that high-speed rail corridors, priority for ayurveda, and support for dairy and livestock sectors would positively impact the state. '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.
BJP state president Nainar Nagenthran welcomed the announcement to establish a cultural heritage centre at the archaeological site of Adichanallur, stating that the Union government is continuing efforts to uphold Tamil culture, promote Tamil heritage globally, and preserve the ancient legacy of Tamil society.
PMK president Anbumani Ramadoss praised the allocation of 12.20 lakh crore for capital expenditure, a 10% increase from last year's 11.21 lakh crore, noting it would strengthen infrastructure nationwide while boosting employment and liquidity.
However, opposition leaders were critical. TNCC president K Selvaperunthagai called the budget 'anti-people' and alleged that promises on jobs and minimum support price remain unfulfilled. VCK chief Thol Thirumavalavan pointed to the sharp fall in the stock market as evidence of the budget's disappointment, warning, 'The people of Tamil Nadu will teach the BJP alliance an appropriate lesson in the coming elections.'
Broader Budget Context
The Union Budget 2026-27 has sparked widespread debate, with reactions varying across political spectrums. While some praise its focus on economic growth and infrastructure, others, like Stalin, decry its perceived neglect of key social sectors and regional equity. The budget's impact on common citizens, as highlighted by criticisms of it offering 'nothing for the common man,' remains a contentious issue, with detailed analyses on tax slabs, cost changes, and overall highlights continuing to dominate discussions.
