Opposition CMs slam Budget, flag neglect of states and erosion of federalism

The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, drew sharp criticism from opposition-ruled states on Saturday, with several chief ministers accusing the Centre of neglecting state-specific demands, withholding dues and weakening cooperative federalism.

Tamil Nadu Chief Minister M.K. Stalin said the Budget once again failed to honour commitments made to the state, listing pending demands including Rs 3,548 crore for education, funding for the Coimbatore–Madurai Metro, Rs 3,112 crore under the Jal Jeevan Mission, new railway lines and a 50 per cent share in tax devolution.

He stated that the announcements without timelines or releases, including the proposed Madurai AIIMS, had become a pattern and stressed that timely implementation, not fresh promises, was required.

Meanwhile, Kerala Chief Minister Pinarayi Vijayan said the Budget “neglected Kerala completely”, pointing to the absence of an AIIMS, no support for seven high-speed rail corridors and no special package for the Vizhinjam port project. He also criticised the Finance Commission’s recommendation to retain states’ share of central taxes at 41 per cent, calling it a blow to cooperative federalism.

Similarly, West Bwngal Chief Minister Mamata Banerjee described the Budget as “directionless, visionless and actionless”, alleging that Bengal’s dues exceeding Rs 2 lakh crore, including pending GST compensation, had been ignored.

She termed the Budget anti-poor and anti-farmer, and accused the Centre of turning a blind eye to rising prices, unemployment, education funding and welfare needs of women, SCs, STs and OBCs.

National opposition leaders amplified the criticism, portraying the Budget as lacking policy direction and failing to respond to economic stress.

Congress president Mallikarjun Kharge said the government had “run out of ideas”, alleging the Budget offered no credible plan for manufacturing revival, job creation, inflation relief or private investment. He said farmers continued to await meaningful income security and that stressed states had received little relief under Finance Commission recommendations.

Leader of Opposition in the Lok Sabha Rahul Gandhi said the Budget ignored youth unemployment, falling manufacturing output, declining household savings and agrarian distress, and failed to acknowledge looming global economic risks.

Congress general secretary Jairam Ramesh called the Budget “insipid and non-transparent”, alleging a lack of clarity on allocations and accusing the government of substituting delivery with slogans.

Also, Samajwadi Party chief Akhilesh Yadav said the Budget skipped core sectors such as education and health, offering what he described as rhetoric instead of concrete solutions.

While the Centre projected a fiscal deficit target of 4.5 per cent and highlighted select tax measures, opposition leaders dominated parliamentary debate and social media discussions, pressing demands for higher tax devolution to states, legal backing for MSP and urgent job creation.

With several key states approaching elections, the Budget debate has sharpened Centre–state faultlines, setting the stage for heightened political confrontation during the ongoing Budget Session.