The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, faced sharp criticism from opposition leaders across the country, who accused the government of ignoring states, neglecting critical sectors, and failing to address employment and economic instability. From Congress veterans like P Chidambaram to regional leaders in Telangana, Odisha, Kerala, West Bengal, Jharkhand, Rajasthan, and beyond, the reactions highlighted widespread dissatisfaction with what many termed a “step-motherly” approach and a lack of concrete planning.
Senior Congress leader and former Finance Minister P Chidambaram described the Budget as having “failed the test of economic strategy and economic statesmanship.” Speaking at a press conference, he questioned whether the Finance Minister had even read the Economic Survey 2025–26, stating that the government appeared to have “discarded it completely” in favor of “throwing acronyms at the people.”
Chidambaram outlined ten major economic challenges ignored in the Budget, including the impact of US-imposed tariffs on manufacturers and exporters, protracted trade conflicts, a growing trade deficit with China, low Gross Fixed Capital Formation, and a reluctance of the private sector to invest. He also pointed out the precarious employment situation, the struggles of MSMEs, and the inadequate fiscal consolidation.
“Even by an accountant’s standards, it was a poor account of the management of finances in 2025–26. Revenue receipts fell short by Rs 78,086 crore and total expenditure was short by Rs 1,00,503 crore,” he said, highlighting drastic cuts in capital and revenue expenditure, including the Jal Jeevan Mission, which fell from Rs 67,000 crore to Rs 17,000 crore. Chidambaram also criticized the proliferation of schemes, funds, and initiatives, warning that many would be forgotten within a year. He questioned the government on how it plans to create jobs, particularly under the VB-GRAM-G Act, which replaces MGNREGA.
Congress leader Shashi Tharoor echoed concerns over jobs and state allocations. Using a cricketing analogy, Tharoor said Sitharaman “seems to have missed the ball,” with a Budget full of subheadings but few specifics. He noted that fiscal devolution remains at 41 per cent, leaving many states unable to fulfill their obligations. Tharoor criticized the lack of clarity on infrastructure projects in Kerala, including ship repair for inland waterways, AIIMS, and the rare earth mineral corridor, saying the state received token mentions at best.
Rahul Gandhi, in a post on X, highlighted the “youth without jobs, falling manufacturing, investors pulling out capital, household savings plummeting, and farmers in distress.” He said the Budget was “blind to India’s real crises” and refused any course correction.
Congress president Mallikarjun Kharge said that the Modi government has run out of ideas, and the Union Budget for 2026-27 does not provide any single solution to India's many economic, social and political challenges.
Regional leaders demand greater allocations and highlight neglect
Telangana Deputy Chief Minister Mallu Bhatti Vikramarka said the state had been “completely neglected,” citing missing allocations for projects like Musi River rejuvenation, the Regional Ring Road, metro rail, biopharma, semiconductor hubs, and tourism. He demanded central assistance for a semiconductor station and said MPs would push for budget allocations beyond party lines.
BJD president Naveen Patnaik echoed similar sentiments for Odisha, expressing disappointment over allocations that focus mainly on extraction of natural resources rather than people-centric development. He criticized the exclusion of Odisha from high-speed rail corridors, tourism projects such as the Buddhist Circuit, and infrastructure funding. BJD Rajya Sabha MP Sasmit Patra called the Budget a “stark reminder that Odisha remains a story of utter neglect,” despite the state contributing significantly to national revenue.
Shiv Sena (UBT) leader Aaditya Thackeray said Maharashtra, the largest contributor to the Union treasury, was “proportionally most ignored,” and questioned funding for high-speed rail corridors and City Economic Regions, calling the government “clueless and visionless” on climate action and employment.
Rajasthan Congress Chief Ashok Gehlot described the Budget as reflecting “step-motherly treatment” toward Rajasthan, citing the absence of projects like the Eastern Rajasthan Canal Project, new railway or metro projects, and relief for workers and the poor.
Jharkhand Mukti Morcha (JMM) general secretary Vinod Kumar Pandey said Jharkhand, despite its mineral wealth, had been completely ignored, with allocations favoring BJP-ruled states. Congress leader Rajesh Thakur added that the Budget failed to address employment and inflation in the mineral-rich state.
In West Bengal, Trinamool Congress leader Abhishek Banerjee termed the Budget “step-motherly,” claiming the BJP sought to “teach the people a lesson” after the party’s electoral losses. He alleged Bengal had been deprived of MGNREGA payments and Awas Yojana funds since 2021.
MNM founder Kamal Haasan criticised the Union government for ignoring Tamil Nadu’s development needs, calling measures for farmers “mere lip service,” and lamented the lack of legal guarantees for Minimum Support Price (MSP).
Left parties, CPI(M) and CPI, slam the Budget as anti-people
The CPI(M) described the Budget as “anti-people, anti-federal,” accusing the Centre of promoting the interests of the wealthy at the expense of common citizens. The party highlighted cuts in several key central schemes, including PM POSHAN, PM-SHRI, PM-JAY, PM-MSY, PMAY, and crop insurance, alongside slashed allocations for Scheduled Castes, Scheduled Tribes, and North Eastern Areas.
CPI(M) stated that the “fiscal discipline” claimed by the government merely translates to tax concessions for the rich while squeezing expenditures vital for the working population. CPI MP P Sandosh Kumar called the Budget a “deliberate political choice to look away from people's hardships,” highlighting unemployment, stagnant manufacturing, underfunded public health and education, and the push toward privatization.
Other regional opposition voices
Jammu and Kashmir Congress leaders Satish Sharma and Ghulam Ahmad Mir called the allocations for the Union Territory “peanuts,” citing the lack of employment-generating power projects and development schemes.
Kerala Chief Minister Pinarayi Vijayan described the budget as a “deliberate attempt to enrich corporations while pushing ordinary people further into poverty.” He criticised the Centre for ignoring long-standing demands of the state, including an AIIMS, seven high-speed rail corridors, and a special package for Vizhinjam port. Vijayan also highlighted the reduction in central grants, from Rs 2.2 lakh crore in 2021 to Rs 1.4 lakh crore now, and voiced concern over the rare earth mineral corridor, warning that it risks handing Kerala’s resources to private monopolies.
Opposition leaders in Kerala echoed his concerns. Leader of Opposition V.D. Satheesan alleged that the rare earth mineral corridor could become a “tool for corporates to steal Kerala’s resources,” and condemned the continued neglect of projects like AIIMS, inland waterways, and high-speed rail. Congress MP K.C. Venugopal demanded scrutiny of whether private players would be allowed to mine mineral sand at the cost of ecology and fishermen’s livelihoods.
In Karnataka, Chief Minister Siddaramaiah termed the budget “disappointing” and claimed a “big injustice” to the state, saying only minor announcements on Bengaluru-Chennai and Hyderabad-Bengaluru high-speed rail corridors were included, while requests for Bengaluru-Mumbai, Bengaluru-Mangaluru, and Bengaluru-Pune corridors were ignored.
Tamil Nadu Chief Minister M K Stalin termed the Budget a “huge disappointment” for the state, saying the Union government ignored the interests of the poor, women, farmers, and marginalised communities. He pointed to the Centre’s refusal to increase states’ share of total tax revenue from 41% to 50%, calling it “disappointing” and warning that Tamil Nadu could lose around Rs 5,000 crore annually in financial devolution. Stalin also criticised cuts in allocations under schemes like Jal Jeevan Mission, Pradhan Mantri Gram Sadak Yojana, PM Awas Yojana (Gramin), and the PM Internship scheme, describing the Budget as “step-motherly” towards Tamil Nadu.
Overall, the opposition across India, cutting across national and regional parties, described the Union Budget 2026–27 as neglecting employment, farmers, states with high contributions, rural development, and social welfare programs. They warned that without concrete allocations for growth, jobs, and state-specific needs, the Budget would fail to meet the aspirations of citizens and exacerbate existing inequalities.
(With inputs from PTI and ANI)