Union Budget 2026-27 | Even on poll eve, Budget has disappointed Tamil Nadu: CM Stalin

Tamil Nadu Chief Minister M.K. Stalin on Sunday (February 1, 2026) said that the Union Budget had totally defeated Tamil Nadu’s expectations that the BJP-led Union government would take note of the State’s requirements and listen to its demands, especially as it was an election year.

“The Budget is totally disappointing. It has ignored the State’s interests, and there are no schemes for the welfare of the poor, women, farmers, and those on the margins of society,” he said in a statement.

Recalling Tamil Nadu’s complaint that developed States were not being given their due share of tax revenue, Mr. Stalin said that the demand of many States, including Tamil Nadu, to increase the States’ share of tax revenue from 41% to 50% had not been heeded.

Mr. Stalin said the biggest disappointment was the Prime Minister’s Internship Scheme. “A total of ₹10,831 crore was announced in the previous Budget. But in the revised estimates for 2025-26, the allocation is just ₹526 crore. This shows that the scheme has failed,” he said.

Mr. Stalin pointed out that even though the 16th Finance Commission had sought to recognise States’ contribution to the Indian economy, it appears that Tamil Nadu’s share of tax revenue was likely to continue at 4.097% for the next five years despite its substantial contribution. “This anomaly has not been corrected by the 16th Finance Commission,” he said.

He said it was highly condemnable that Tamil Nadu’s share of tax revenue had been reduced by ₹1,200 crore, especially at a time when GST reforms had affected the State’s tax revenue.

“When we were eagerly waiting for the allocation of funds for schemes for Tamil Nadu, there are no new schemes either. This clearly shows the Union government’s step-motherly attitude towards Tamil Nadu,” he said.

The Chief Minister said that the Budget had failed to allocate ₹3,548 crore for education since Tamil Nadu had refused to implement the three-language formula, and that there was no announcement regarding the allocation of ₹3,112 crore for the Jal Jeevan Mission (JJM), even though Tamil Nadu had implemented the scheme effectively.

‘Ignored State’s demands’

Tamil Nadu’s Finance Minister Thangam Thennarasu said the Budget had ignored the State’s genuine demands and failed to allocate funds for development schemes, employment generation, education, health, and industrial investment.

“There is no due allocation for Tamil Nadu, which is playing an important role for the growth of the nation. It is really disappointing,” he added.