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Union Budget 2026 and a Major Disappointment to Tamil Nadu

Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman tabled the Union Budget for the financial year 2026–27 in Parliament on Sunday. To present her record ninth consecutive Union Budget, she chose a deep maroon-purple Kanjeevaram silk saree with gold zari borders, reflecting the iconic weaving tradition of Tamil Nadu.

As Assembly elections were nearing in Tamil Nadu, Nirmala Sitharaman’s choice of attire raised huge expectations among the people of the state. However, after her 1-hour-and-24-minute budget speech, all that remained was a sense of deep disappointment.

Tamil Nadu Chief Minister M.K. Stalin, on X, urged Finance Minister Nirmala Sitharaman to make announcements for Tamil Nadu, at least considering the upcoming Assembly elections. He wrote, “Along with the usual quoting of Thirukkural, will announcements for Tamil Nadu find a place in the Union Budget 2026–27, at least keeping the elections in mind?”

Stalin also listed several expectations of the people of Tamil Nadu: the release of ₹3,548 crore in withheld education funds for students; approval for the Coimbatore and Madurai Metro Rail projects; ₹3,112 crore in funding for the Jal Jeevan scheme; a 50% share of the Union government’s tax revenue for states as recommended by the Finance Commission; and new railway projects.

“We expect that, at least with the elections in mind, announcements for Tamil Nadu will not be missed this time. We also urge that these should not end up like the Madurai AIIMS, remaining only as announcements, but should be implemented within a specified timeframe with proper financial allocation,” Stalin added in his post on X.

MK Stalin - DMK
Tamil Nadu CM MK Stalin

However, the Union Budget 2026–27 turned out to be a major disappointment for the people of Tamil Nadu, barring a few announcements.

Adichanallur, one of India’s oldest archaeological sites located in Tamil Nadu’s Thoothukudi district, is to be developed into a world-class experiential destination with the aim of boosting tourism. Along with Adichanallur, a total of 15 archaeological sites, including Lothal and Dholavira in Gujarat, and Rakhigarhi in Haryana, have been selected for this cultural destinations project.

In another move to promote tourism, ecologically sustainable mountain trails will be developed in Pothigai Malai (also known as Agasthyarkoodam) to provide world-class trekking and hiking experiences. Uttarakhand, Himachal Pradesh, Jammu and Kashmir, and the Araku Valley in the Eastern Ghats have also been included in this project.

Three birdwatching trails will be developed along Pulicat Lake to offer a world-class birdwatching experience.

Finance Minister Nirmala Sitharaman also announced that a rare-earths corridor will be established in Tamil Nadu. Through this project, the government plans to create rare mineral resource corridors for the extraction, development, research, and production of mineral resources.

The Finance Minister further announced seven new high-speed rail corridors, including Hyderabad–Chennai and Chennai–Bengaluru.

Reviewing the budget, DMK MP K. Kanimozhi called it a “deception without change.” She also took to X to criticise the Union Budget, posting, “Even elections couldn’t persuade the Union BJP government to remember Tamil Nadu in this budget.”

– Magizh