Tamil Nadu not ignored in budget: Sitharaman

Finance Minister Nirmala Sitharaman on Monday called out DMK member P Wilson for his claim that Tamil Nadu was ignored in the Union Budget 2026-27, saying the Budget had several announcements, including the Rare Earth Corridor and girls’ hostels in every district that would benefit the State.

Participating in the debate on the Budget in the Rajya Sabha, the DMK and AIADMK targeted each other over the announcements and projects for Tamil Nadu.

“Madam, what you give to Tamil Nadu will come back to you. Since you have not given anything, nothing will come back to you. Tamil Nadu is the jewel in India’s crown. We are India’s best performing State... call upon PM to FM to be fair to Tamil Nadu,” Wilson said in the Upper House.

Sitharaman debunked his claim, highlighting various initiatives unveiled in the Budget, observing that “sweeping statements like these without any basis, link with the Budget which has been presented only eight days ago, is not right at all”.

Naming Wilson, Sitharaman said, among many other things that he read out rather than spoke, one thing that stood out was that Tamil Nadu has been given no new projects, which was absolutely wrong.

“What is the Rare Earth Corridor? Is it not going to Tamil Nadu? Every district to get one girls’ hostel, is it not for Tamil Nadu?” the finance minister responded. She also highlighted other Budget announcements related to the coconut scheme and fishermen, saying they will also benefit Tamil Nadu, among other States.

During his speech, Wilson said, while the national railway budget has grown 25 times since 2014, Tamil Nadu has got only 7.5 times, compared to other States like Gujarat, which saw a 29 times increase (in allocation) and Delhi, a 27 times increase.

Even today, the Union Government has not approved the Coimbatore and Madurai metro rail projects, which are critical for Tamil Nadu’s growing cities, the DMK MP said.

“This is a real problem with this Budget. It favours spectacle over real needs, politics over people and control, Central control over the federal fairness infrastructure is being used as a political tool, not as a means to build and build the nation equally,” Wilson said.

For several years, Tamil Nadu has consistently argued that the Union Government’s approach to tax devolution has systematically disadvantaged developed and high-performing States, including Tamil Nadu, Wilson said, adding that once again, the demand raised by many States that their shares in the divisible pool of taxes be increased from 41 per cent to 50 per cent has been ignored.

“If Tamil Nadu is your best performer, you should cherish and showcase the State, not undercut it at every turn. We delivered 11.4 per cent growth last year. Why this discrimination? Tamil Nadu, which has the second largest State economy...” he observed.

On the other hand, M Thambidurai of the AIADMK congratulated Sitharaman for presenting her ninth consecutive Budget and alleged that the DMK Government’s mismanagement has put a long-term financial burden on the people of Tamil Nadu, accusing the DMK of not fulfilling its promise of not levying any taxes made in the State Assembly elections.

Besides, AD Singh of RJD described Viksit Bharat as a “jumla”, asking what efforts the Government has undertaken towards boosting the economic activity.