Chief Minister MK Stalin on Sunday expressed disappointment over the allocation to the state under the Union Budget 2026-27.
TN CM Stalin highlighted the lack of mention of the proposed allocation of ₹3,548 crore for education, which he said was due to non-adherence to the three-language policy. (PTI file photo)”As Tamil Nadu gears up for assembly elections, we had hoped that at least this year the state would be visible in the eyes of the central BJP government and our voice would be heard by them. However, this year too, the BJP government has only disappointed,” he said in a statement.
“The demand of various states, including Tamil Nadu, to increase the share of total tax revenue distributed to the states from 41% to 50% has been ignored this time,” Stalin said.
“Furthermore, despite efforts of the 16th Finance Commission to give due recognition to states’ contribution to India’s economic growth, it is regrettable that Tamil Nadu, which has the second largest economy in the country and contributes significantly to the country’s economic growth, has been given a lower percentage of financial allocation than other developed states. It is reported that Tamil Nadu will have a tax of 4% to 9%. As per preliminary estimates for the next five years, this will result in a financial loss of approx. ₹5000 crore per year as compared to other comparable states… In the last seven years, it is very worrisome that Tamil Nadu continues to be neglected in disbursement of funds, a situation which has not been rectified even by the 16th Finance Commission,” the Chief Minister added.
Stalin also pointed out the lack of reference ₹3,548 crore proposed allocation for education, which he said was due to non-adherence to the tri-language policy.
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Regarding the Jaljeevan Mission, the Chief Minister said that the state government is insisting on releasing the Centre ₹3,112 crore under the scheme. But the allocation for the project was reduced ₹7,000 crore in the revised estimate. “This appears to be an attempt to stall the project altogether”, he commented.
Finance Minister Thangam Thennarasu echoed the Chief Minister’s comments. “”There is no clear declaration for basic development needs of the state, employment, education, health care, industrial investment and other key sectors. The just demands raised by the Tamil people over many years have again been ignored,” Thennarasu said in a post on X.
Meanwhile, AIADMK chief Edappadi K Palaniswami, who is the NDA’s chief ministerial candidate in the state, welcomed the budget, especially its focus on infrastructure and SME growth, which he said would help the state immensely. He noted that the Integrated Program for the Textile Sector would provide much-needed modernization support to the traditional textile belts of Coimbatore, Tirupur and Erode and welcomed the establishment of a rare earth corridor and creation of a specialized biomedical park in Tamil Nadu.
