Chief Minister M.K. Stalin on Saturday wondered why the Union government did not accept even one of the numerous demands put forth by his government.
Giving his reaction to the Union Budget, Mr. Stalin, in a post on his social media handle, asked whether the Budget meant “partiality”. Why did they [Union government] not approve Madurai and Coimbatore Metro Rail projects, highways and railways projects? Why is it that not even once was Tamil Nadu mentioned,” the Chief Minister asked.
Contrasting appreciation of reports of the Economic Survey, report on ranking of institutions of higher education and the Niti Aayog for Tamil Nadu, the Chief Minister asked the Centre why Tamil Nadu continued to be neglected in its budgets. “Do they not show even an iota of interest that they otherwise display in imposing policies unacceptable to the State and while imposing Hindi? The BJP government is continuing to cheat people of the country through its charade by way of statements that contain empty ornamental words and deceptive top coating,” the Chief Minister added.
Deputy Chief Minister Udhayanidhi Stalin said the Budget had “exposed step-motherly treatment and prejudice” of fascists towards Tamil Nadu. He condemned the “biased approach” of the BJP government, which not only “ignored” high-tax paying Tamil Nadu but also “liberally provided” funds to certain States merely to “protect the chair” and take into account “political calculations.”
Tamil Nadu Finance Minister Thangam Thennarasu said, “Tamil Nadu, a State consistently at the forefront of national growth, is disappointed by the Union Budget 2025-2026, which fails to acknowledge its contributions, as detailed in the Economic Survey 2025. While lesser-contributing States gain disproportionately, Tamil Nadu’s development needs remain unmet.”
AIADMK general secretary Edappadi K. Palaniswami has described the Union Budget as one of jugglery.
In a post on his social media handle, Mr. Palaniswami said that even as the Economic Survey talked of the need for the country to record an annual growth rate of at least 8% for 10 years to attain the goal of “Viksit Bharat” by 2047, only the income tax exemption had been raised. “There is nothing for the generation of jobs for the youth and skill development,” the AIADMK leader said, wondering how the country was going to achieve 8% growth every year. “The Budget appears to be one full of jugglery,” he observed.
As for the implications of the Budget for Tamil Nadu, he said, “There is no special scheme for Tamil Nadu. It remains to be seen how the Dhan-Dhaanya Krishi Yojana is going to be beneficial to Tamil Nadu. Considering that Tamil Nadu is a water-deficit State, no scheme has been proposed for the diversion of excess water to the State and improvement of agricultural resources.” It was also disappointing that contrary to expectations, there was no announcement about the extension of the Metro Rail network to Madurai and Coimbatore, he said.
Former Union Minister Dayanidhi Maran contended that the proposed income tax exemption up to ₹12 lakh was “very, very confusing” and “ not a simple, straightforward statement.”
He referred to the tax rate of 10% for the slab structure of ₹8-₹12 lakh and argued that “the devil is in the details.” He also accused the Union government of keeping electoral considerations in mind while preparing the Budget, in view of the polling to be held on February 5 for the Delhi Assembly election and the scheduled poll for the Bihar Assembly later this year. “Infrastructure is not going to the rest of the country. It is only going to Bihar,” he observed, adding that there was “not a single word” about Tamil Nadu or, for that matter, any other southern State.
T.T.V. Dhinakaran, Amma Makkal Munnetra Kazhagam general secretary, welcomed the Budget that had been prepared to ensure growth and economic stability of all sections of society including the poor, youth, students, farmers, women and entrepreneurs.
Tamil Nadu Congress Committee president K. Selvaperunthagai said, “By increasing the Foreign Direct Investment (FDI) limit from 74% to 100% in the insurance sector, the Life Insurance Corporation of India (LIC), a public sector enterprise, has been given to the hands of foreign investors. The allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme is the lowest in the last 10 years.”
Viduthalai Chiruthaigal Katchi founder Thol. Thirumavalavan said, “The Union Budget was aimed only to satisfy the alliance partners of the BJP and ignored the welfare of people belonging to Scheduled Castes, Scheduled Tribes and minorities. By creating discrimination among States, the Union budget attempted to disrupt unity of India.” He also alleged that the fund allocation for pre-matric and post-matric scholarships have been drastically reduced when compared to previous year and no funds allocated for welfare of gig workers.
PMK founder S. Ramadoss welcomed the Budget announcement of no income tax for annual income up to ₹12 lakh and said it would ease the tax burden and benefit middle income groups. He also welcomed the decision to exempt basic customs duty for 36 life-saving drugs and medicines and adding 10,000 seats in medical colleges by next year and 75,000 seats in the next five years. He expressed disappointment over not having any specific announcements on railway and irrigation projects and guaranteed MSP for farmers. Echoing his views on several aspects, PMK president Anbumani Ramadoss said there was no announcement related to the much anticipated reduction of indirect taxes on petrol and diesel.
MDMK general secretary Vaiko said, “It is highly condemnable that the allocation to Bihar was more in view of the upcoming Assembly elections, but Tamil Nadu was ignored. Permitting 100% FDI in the insurance sector was an attempt to privatise LIC. Though there were some welcome steps including exemption of basic customs duty on life-saving drugs and transformation of 1.5 lakh rural post offices, overall the budget was disappointing,” he added.
Communist Party of India (CPI) State secretary R. Mutharasan faulted the Union Finance Minister Nirmala Sitharaman for not making sufficient allocation to Metro Rail project, and doubling and electrification of railway tracks, all of which concerned Tamil Nadu, besides disaster management and rehabilitation. Allowing Foreign Direct Investment to 100% in the insurance sector would hurt the savings of the poor. No announcement had been made in making legally binding the minimum support price for foodgrains with no concern for labour welfare and social security schemes.
CPI(M) State secretary P. Shanmugam alleged that there were no announcements on generating employment, guaranteed MSP for farm produce, and enhanced allocation for MGNREGS. “Tamil Nadu was entirely ignored in the Budget, while the poll-bound States such as Delhi and Bihar have got increased allocations. There were no specific announcements on Madurai and Coimbatore Metro Rail projects, and the Budget shows the failure of the BJP government.”
DMDK general secretary Premallatha Vijayakant said there were no announcements related to interlinking of rivers, bullet train project, employment generation, measures to control price rise, and closing toll gates across the country. She welcomed announcements such as mission for cotton productivity, enhancement of credit guarantee cover for MSMEs, scheme for making India a global hub for toys, expansion of capacity in 23 IITs, and scheme to provide digital-form Indian language books.
Tamil Maanila Congress (Moopanar) president G.K. Vasan said it was a growth-oriented Budget and greeted Finance Minister Nirmala Sitharaman for presenting the budget for the eighth time. He said the changes in income tax would benefit middle income groups. This budget has reassured the commitment of the BJP government, which came to power for the third consecutive time at the Centre, in developing India.
Makkal Needhi Maiam president Kamal Haasan said, “It is disappointing that the Union Government has once again ignored Tamil Nadu’s critical development needs. States that perform well economically deserve consistent support in the Union Budget, not just pre-election rewards. Fortunately, Tamil Nadu’s turn will come in 2026? Lip service to India’s farmers continues, with no legal guarantee for MSP. Our farmers, the backbone of the nation, deserve more than empty promises. However, I appreciate the progressive income tax reforms that empower taxpayers, the true drivers of our economy.”
Tamilaga Vettri Kazhagam president Vijay said Tamil Nadu continued to be ignored in the Union budget. There were no announcements relating to Coimbatore and Madurai Metro Rail and other infrastructure development projects. Without any bias, the Union budget should consider the development of all the States. The announcement on providing term loans up to ₹2 crore to five lakh first-generation women, Scheduled Castes and Scheduled Tribes entrepreneurs and no income tax for annual income up to ₹12 lakh, are welcoming aspects.
