Did Union Budget not focus on poll-bound states enough? Nirmala Sitharaman's clarification

Nirmala Sitharaman, in a press briefing, said the government has focused on both election and non-election states in the Union Budget.

While the Union Budget 2026-27 laid a strong emphasis on sectors like defence, transport, semiconductors, and rare-earths, one of the keenly-watched areas was the allocation made to poll-bound states.

Finance Minister Nirmala Sitharaman shows the digital tablet, enclosed in a traditional red 'bahi-khata' style pouch, at the Parliament premises before presenting of the Union Budget 2026-27, in New Delhi. (PTI Photo/Ravi Choudhary)

Finance minister Nirmala Sitharaman, in her ninth consecutive budget, made major announcements, including those for poll-bound states. However, the leaders of West Bengal and Kerala hit out at the government for “ignoring” the respective states.

Follow the latest updates on Union Budget 2026-2027

Tamil Nadu, West Bengal and Kerala are among the states to go for polls this year.

When asked on the budget allocation for the poll-bound states, the finance minister said there was "enough done to cover all these election states."

During the press post-budget press briefing, Sitharaman said the government has done for both election and non-election states.

"I think there is enough to cover all these election states. If I do, you will ask why have you done only for the election states. Now, I have done it for election and non-election states as well. You want me to spell out what is being done only for the election states, I am quite happy to do it," Sitharaman said in response to a question on allocation to poll-bound states.

Sitharaman also laid emphasis on rare-earth minerals and the need for industrial corridors. The government has launched a scheme for rare earth magnets, of which Tamil Nadu is also a part. The scheme will establish dedicated rare earth corridors to promote mining, processing, research and manufacturing.

"The industrial corridors are very critical for supply chains. We need predictable mineral rare-earth and magnet related products to be made available for India's manufacturing," Sitharaman said.

"You need these rare earths to be processed and be made available. We have enough raw materials. The coastal areas are rich in these minerals," she added.

Budget allocation for Tamil Nadu

While Tamil Nadu didn't feature prominently in the budget this year, the southern state was part of the schemes meant to establish Rare Earth Corridors and promote world-class trekking and hiking experience.

The finance minister also announced seven high-speed rail corridors connecting Chennai to Bengaluru and Hyderabad. Tamil Nadu is also part of the coconut production schemes to strengthen farm incomes and diversify agricultural output.

Tamil Nadu chief minister MK Stalin said that lack of new projects in budget to the state reflects centre's 'step motherly' attitude.

DMK MP Kanimozhi called the budget disappointing for Tamil Nadu, saying the centre does not want to give anything to the state.

"Even with elections in mind, they have not announced anything for Tamil Nadu. They are not giving us anything, but then they want to mine rare earth from Tamil Nadu. It's a very disappointing budget," Kanimozhi told PTI news agency.

What Bengal gets in 2026-27 Budget

While the Budget speech made by Sitharaman on Sunday failed to make a mention of West Bengal, the budget proposed a new dedicated freight corridor linking Dankuni in West Bengal to Surat in Gujarat, an integrated East Coast Industrial Corridor with a major node at Durgapur, and tourism-focused interventions under the Centre's Purvodaya vision.

Sitharaman proposed establishing a new Dedicated Freight Corridors connecting Dankuni in the East, to Surat in the West to promote environmentally sustainable cargo movement and reduce logistics costs.

The budget also proposed the creation of tourism destinations across five Purvodaya states and provisions for 4,000 e-buses.

However, West Bengal chief minister Mamata Banerjee called the Budget as "directionless and visionless", claiming that it had nothing to offer to the common man and her state. Bengal goes for assembly elections in the coming months.

"This Budget is directionless, visionless, actionless and anti-people. It is also anti-women, anti-farmer, anti-education and against the SC, ST and OBC... There is nothing on offer for Bengal in the Budget," Mamata said, according to PTI.

"Education funds and subsidy have been slashed, along with social security subsidy and fertiliser subsidy. This is a garbage of lies... of Himalayan incompetence. The economy will be totally derailed," she added.

Poll-bound Kerala sees limited gains

Kerala, which goes to polls this year, was expecting a greater share in this year's budget, with major announcements around high-speed rail corridor and the sanctioning of an AIIMS.

While Kerala is part of the Rare Earth Corridors and "Turtle Trails" to boost tourism, the state is not included in the proposed high-speed rail corridors. The neighbouring states of Tamil Nadu, Karnataka and Telangana have featured in High-Speed Rail corridors connecting key cities. The ruling LDF and the opposition Congress-led UDF have criticised the budget, citing lack of attention to the state.

Taking a strong objection to the budget, Congress leader Shashi Tharoor said that there is nothing in the budget that satisfies him as a Malayali. He said he was a "little surprised" over the lack of Kerala's mention.

"We got very few details. There were 3-4 headlines, but we were waiting for the All India Institute of Ayurveda. Where is it? We wanted this in Kerala. We have had a long tradition of Ayurveda. But we didn't hear Kerala's name," Tharoor told reporters outside the Parliament.

Why poll-bound states have high hopes?

In recent years, the budgets preceding Assembly elections have often made regional emphasis on poll-bound states. One clear example was Bihar, which was at the centre of the Budget announcement last year.

Some of the crucial allocations to Bihar include airport expansion to irrigation and industrial projects. Last year, Sitharaman announced a Makhana Board for Bihar to boost fox nut cultivation, apart from announcing greenfield airports and expansion of the Patna airport.

The state also featured in the announcement on a National Institute of Food Technology, Processing and Innovation, aimed at providing a fillip for entire eastern India, enhance farmers' income, and skilling and employment opportunities for youth.

Last year Union Budget also preceded Delhi polls, which were held in February. However, the Election Commission directed the government to refrain from announcing any schemes or initiatives for Delhi, citing the Model Code of Conduct (MCC).