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Union Budget: No big bang proposal for poll-bound states

Finance Minister Nirmala Sitharaman announced infrastructure projects for Assam, West Bengal, Tamil Nadu, and Kerala, but no major allocations for elections.

Updated on: Feb 2, 2026, 05:20:35 IST
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Union finance minister Nirmala Sitharaman on Sunday unveiled a bunch of projects that are expected to give a fillip to infrastructure and connectivity in the poll-bound states of Assam, West Bengal, Tamil Nadu, and Kerala but there was no mega allocation or big-ticket announcements aimed at these high-stakes elections in the Union Budget.

The minister has also announced the setting up of a new National Institute of Design to boost design education and development (PTI)
The minister has also announced the setting up of a new National Institute of Design to boost design education and development (PTI)

This was in stark contrast to the outlay of over 60,000 crore for various projects aimed at Bihar in the Union Budget last year.

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West Bengal did not find a specific mention in the finance minister’s speech but the state is expected to gain from the allocation under Purvodaya, where the development of an integrated East Coast Industrial Corridor with a well-connected node at Durgapur has been proposed; the dedicated Freight Corridors connecting Dankuni in the east to Surat in the west, and a high-speed rail corridors on the Varanasi–Siliguri route.

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“I propose the development of an integrated East Coast Industrial Corridor with a well-connected node at Durgapur, creation of 5 tourism destinations in the five Purvodaya states, and the provision of 4,000 e-buses,” the minister said.

Bengal is one of the five states included in the Purvodaya comprehensive development plan for growth in the eastern states of Bihar, Jharkhand, Odisha, and Andhra Pradesh.

Sitharaman did not mention Puducherry in her speech. However, according to PTI, the Union Territory has been allocated 3,517.88 crore as part of the annual Budget allocation under the broader Ministry of Home Affairs’ budget.

Puducherry chief minister N Rangasamy hailed the Budget as “most progressive and development- oriented”, PTI reported.

The minister has also announced the setting up of a new National Institute of Design to boost design education and development in the eastern region of India.

Also read: ‘Strategic imperative’: India hikes defence budget by 15% to 7.85 lakh crore

Tamil Nadu and Kerala stand to gain through the support that the minister announced for high-value agricultural produce such as coconut, cashew and cocoa; and steps to enhance wildlife tourism through bird watching trails.

In her budget speech, the finance minister announced that the government proposes to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing.

“To enhance domestic chemical production and reduce import dependency, we will launch a scheme to support states in establishing three dedicated chemical parks, through a challenge route, on a cluster-based plug-and-play model,” she said.

Noting that India has the potential and opportunity to offer world-class trekking and hiking experience, she announced the development of ecologically sustainable mountain trails in Podhigai Malai along the Tamil Nadu and Kerala border. Tamil Nadu will also get turtle trails and dedicated birdwatching trails.

To be sure, the trekking and hiking trails and the turtle trails will also be supported in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Araku Valley in the Eastern Ghats, Odisha and Karnataka.

Assam –– which will benefit from the scheme for development of Buddhist circuits which have been proposed in Arunachal Pradesh, Sikkim, Manipur, Mizoram and Tripura –– will also get help for the upgradation of NIMHANS in Tezpur.

  • Smriti Kak Ramachandran
    ABOUT THE AUTHOR
    Smriti Kak Ramachandran

    Smriti covers an intersection of politics and governance. Having spent over a decade in journalism, she combines old fashioned leg work with modern story telling tools.

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