The much-anticipated Union Budget 2025-26 left southern states feeling overlooked and dissatisfied. While the budget was hailed for its tax exemptions and welfare schemes targeting the middle class, it failed to address several critical demands from southern states, political leaders said.
KERALA DISAPPOINTED
Kerala Chief Minister Pinarayi Vijayan said: “The budget shows a political approach that focuses here and there depending on where the elections are. None of these have been considered in the budget. There are no big projects. All the constant demands like AIIMS and Railway Coach Manufacturing Plant have been rejected in this budget too.”
“The central budget has become a political document of neglect against the expectations of Kerala. This is extremely disappointing. This is unfortunate,” he added.
Vijayan condemned the budget’s failure to address unemployment, inflation, and poverty, stating that it violates the federal structure of the Constitution.
Kerala was hoping for substantial relief in the form of a Rs 24,000-crore economic package and Rs 5,000 crore for the Vizhinjam port project. Kerala Finance Minister KN Balagopal, too, expressed disappointment, highlighting that the state’s specific requests were ignored. “Vizhinjam port is a major infrastructure investment. We requested some funds. We raised the concerns of rubber plantation farmers. 20-21 per cent of the total income of foreign money is coming through the NRIs of Kerala. So some welfare schemes were expected. These were the issues we raised. They are not giving proper funding for the state. It’s very evident from the budget.”
TELANGANA VOICES DISCONTENT
Telangana also voiced its dismay at the budget’s failure to fulfill the promises made to the state. Telangana Minister Konda Surekha voiced her deep disappointment, accusing the Union Government of neglecting the younger state. “The requests from southern states were overlooked, and Telangana’s promises were harshly ignored,” Surekha stated, criticising the Union Budget for not offering enough support for the state’s growth.
TAMIL NADU’S ALLEGATIONS
Tamil Nadu Chief Minister MK Stalin criticised the Union Budget 2025-26 for neglecting the state, stating, “Even the name Tamil Nadu does not appear continuously.” He questioned why Tamil Nadu’s significant demands, including highway and metro rail projects, were ignored. Despite the state’s prominence in reports like the Economic Survey and NITI Aayog rankings, Stalin remarked, “Tamil Nadu is completely ignored in the Budget Report this year.”
He highlighted the growing financial burden on Tamil Nadu as the Union Government reduces its share in projects and imposes restrictions on the state. Stalin also accused the government of focusing on “advertising” rather than “the welfare of the people,” and dismissed the budget as a “charade” aimed at deceiving the public. “If plans and funds are announced only for states where elections are held and BJP is in power, what’s the need to call it a union budget?” he asked.
DMK MP Kanimozhi shared her dissatisfaction with the Union Budget. “In all my years in Parliament, this is the first time I have had the opportunity to listen to the Bihar State Budget in Parliament,” she said, hinting at the disparity in how regional budgets were given attention, particularly those of the Southern states.
“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,” wrote Thangam Thenarasu, Tamil Nadu Finance Minister on X.
BJP SATISFIED
On the other hand, Bandi Sanjay Kumar, the Union Minister of State for Home Affairs, praised the Union Budget, calling it a game-changer for the country. He emphasised how the budget prioritises the welfare of farmers, the middle class, and small entrepreneurs. “The budget will benefit farmers and ensure economic stability,” he said, highlighting measures like the introduction of Kisan Credit Cards for 7.7 crore farmers and an increase in MSME loan limits.
Sanjay Kumar also noted that the budget’s focus on boosting the middle class with tax exemptions and the reduction in prices for essential goods, including electric vehicles, would significantly benefit the people of Telangana and beyond.
Southern states expressed significant dissatisfaction, particularly with the lack of provisions for their key concerns. Kerala, Telangana, and Tamil Nadu had high expectations for financial relief and infrastructure support, which were largely unmet.
With inputs from Pramod Madhav, Shibimol, Shilpa Nair, Abdul Basheer, Anagha