Tamil Nadu Excluded from Key Allocations, CM Stalin Slams Modi Government's Budget

Tamil Nadu Chief Minister M K Stalin has criticized the 2026 Union Budget, accusing the Second Modi government of completely ignoring the state. He described the budget as an act of betrayal by the Centre.

Stalin said that, with the assembly elections approaching, Tamil Nadu had expected special projects and allocations. However, he claimed, the Centre’s neglect reflects its anticipation of BJP’s defeat in the state elections.

The Centre rejected Tamil Nadu’s long-standing demand to increase its share of central taxes from 41% to 50%. Stalin argued that the Centre is punishing developed states, causing Tamil Nadu an annual loss of 5,000 crore rupees.

He further said that reductions in allocations for major schemes like the Jal Jeevan Mission and the Pradhan Mantri Gram Sadak Yojana would adversely affect the state. Stalin alleged that the Centre has adopted this “vindictive policy” because the BJP is expected to lose in the upcoming assembly elections.

The Chief Minister also criticized the Centre for withholding educational funds meant for Tamil Nadu due to non-implementation of its language policy. He noted that even the Thirukkural, usually quoted in the Union Budget speech, was omitted by the Finance Minister this year.

Meanwhile, there has been widespread protest in the state over the Centre not providing funds for projects like the Coimbatore-Madurai Metro Rail and Madurai AIIMS.

However, BJP leaders, including Tamilisai Soundararajan, argue that the budget focuses on development and will aid Tamil Nadu’s industrial growth.