'Step-Motherly Attitude': Tamil Nadu CM MK Stalin Criticises Centre Over Union Budget 2026–27 Allocations

Chennai: The Union Budget for 2026–27 presented in Parliament on Saturday triggered sharply contrasting reactions in Assembly poll-bound Tamil Nadu, with Chief Minister M K Stalin strongly criticising it as discriminatory towards the State, while Leader of the Opposition Edappadi K Palaniswami welcomed it as growth-oriented and future-ready.

Stalin Calls It Disappointing
In a statement on Sunday evening, Stalin said the much-anticipated Budget had delivered “nothing but disappointment” to Tamil Nadu. He alleged that the Union government had once again ignored the State’s interests and failed to announce any major schemes benefiting the poor, women, farmers or marginalised sections.

Tax Devolution Concerns Raised
The Chief Minister reiterated Tamil Nadu’s long-standing concerns over tax devolution, stating that demands to increase the States’ share in the divisible pool of taxes from 41% to 50% had been ignored. He expressed disappointment that Tamil Nadu’s tax devolution share had been fixed at 4.097% for the next five years, which, according to preliminary estimates, could result in an annual revenue loss of around ₹5,000 crore compared to similarly placed States. Stalin also flagged a reduction of about ₹1,200 crore in Tamil Nadu’s share of Union taxes this year.

Cuts To Key Schemes
He further criticised cuts in allocations to flagship schemes, including the Jal Jeevan Mission, Pradhan Mantri Gram Sadak Yojana and Pradhan Mantri Awas Yojana (Rural), and pointed out that pending releases under the Jal Jeevan Mission and Samagra Shiksha schemes had not been addressed. Terming the Budget a reflection of the Union government’s “step-motherly attitude” towards Tamil Nadu, Stalin summed it up as a “total disappointment”.

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EPS Welcomes Union Budget
In contrast, Palaniswami, whose AIADMK is an ally of the BJP, welcomed the Budget, stating that it provided a strong roadmap for India’s economic progress under the leadership of Prime Minister Narendra Modi. Referring to the Economic Survey, he noted that India’s economy remained resilient despite global uncertainties, with growth projected at 6.5% to 7% in 2025-26 and expected to rise further in 2026-27.

Focus On Growth Sectors
The AIADMK leader praised the Budget’s emphasis on fiscal discipline, reduction of the fiscal deficit, and sustained growth. He welcomed measures aimed at reducing imports, boosting domestic production, and promoting high-technology sectors such as artificial intelligence, digital manufacturing, pharmaceuticals, textiles and green energy. Palaniswami also highlighted allocations for infrastructure, logistics, MSMEs and the textile sector, stating that Tamil Nadu, with its strong MSME base, stood to benefit significantly.