Union Budget – Opposition Leaders Say Southern States Left Without Clear Support
Union Budget – The Union Budget for the 2026–27 financial year has drawn sharp criticism from opposition leaders, with concerns raised over what they describe as a lack of meaningful support for southern states and key social groups across the country.
Congress leader DK Suresh on Tuesday said the latest budget failed to present any fresh vision for states in southern India, alleging that it offered no tangible benefits to the region. Speaking to reporters, Suresh claimed the budget did not address long-standing concerns related to regional equity and development priorities.
Concerns Raised Over Regional Development
According to Suresh, the budget did not outline any new initiatives or financial commitments specifically aimed at southern states. He argued that people in these regions were left without clarity on how central funds would support future growth. He further alleged that repeated demands for greater transparency in the allocation of tax contributions from southern states have gone unanswered.
Suresh also expressed disappointment over the absence of dedicated provisions for Karnataka, particularly for Bengaluru. He said appeals made by Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar seeking central assistance for the city’s infrastructure and development projects were not reflected in the budget proposals.
Claims of Tax Inequity for Kannada Community
The Congress leader reiterated his party’s position that the Kannada-speaking population continues to face what he described as tax injustice. He claimed that despite contributing significantly to national revenues, the community has not seen proportionate returns through central funding or welfare schemes.
He stated that requests for a detailed account of how tax revenues collected from the state are redistributed have not been addressed. According to him, this has added to growing concerns about fiscal fairness and regional balance under the current framework.
Social Groups Allegedly Overlooked
Suresh also criticised the budget for what he termed as a lack of focus on youth, farmers, and women. He claimed that the financial plan did not introduce measures that directly respond to the challenges faced by these groups, particularly in areas such as employment, agricultural support, and women-centric welfare initiatives.
He said the absence of targeted programmes raises questions about the government’s priorities at a time when economic pressures continue to affect large sections of the population.
Finance Commission Devolution Maintained
The reactions come after the central government accepted the recommendations of the 16th Finance Commission to retain the vertical share of tax devolution to states at 41 per cent. During the budget presentation, Finance Minister Nirmala Sitharaman announced that ₹1.4 lakh crore has been allocated to states for the 2026–27 fiscal year under Finance Commission grants.
The decision follows the precedent set by the 15th Finance Commission, which had also recommended a 41 per cent share of central taxes for states. While the government maintains that the arrangement ensures fiscal stability, several states have been pressing for a higher share.
DMK Voices Discontent Ahead of Elections
Adding to the criticism, Dravida Munnetra Kazhagam MP Kanimozhi described the budget as disappointing for states, particularly Tamil Nadu. She noted that many states had sought an increase in tax devolution to 50 per cent but were again met with the same allocation level.
Kanimozhi said the budget did not offer concrete benefits to Tamil Nadu, despite the state approaching assembly elections. She argued that the absence of significant announcements or special allocations sends a negative signal to states that have been seeking greater financial autonomy and development support.
According to her, the budget failed to address core demands raised by state governments, leaving them dissatisfied with the overall fiscal approach.
Broader Debate on Fiscal Federalism
The reactions from opposition leaders highlight a broader debate on fiscal federalism and the distribution of resources between the Centre and states. While the government has defended its decisions as balanced and sustainable, critics argue that the needs of certain regions and communities remain insufficiently addressed.
As discussions around equitable growth continue, the budget is expected to remain a focal point of political debate in the coming months, especially with elections on the horizon in several states.