The Union Budget 2026-27 presented in Parliament by Union Finance Minister Nirmala Sitharaman evoked contrasting reactions with the Chief Minister N. Rangasamy terming it “progressive and development-oriented”, while from the Opposition ranks, the CPI dubbed it as a pro-corporate exercise that dodged any commitment to alleviate poverty, assist agriculture or help MSMEs hit hard by punitive US tariffs.
In a press statement, the Chief Minister hailed the Budget for its significant focus “on the country’s economic growth, employment, the progress of women and youth, and agricultural and industrial development”.
The “budget is designed to fulfill the expectations and aspirations of all sections of society and to give concrete shape to the Prime Minister Narendra Modi’s guarantee of creating a developed India”, he said.
The Chief Minister noted that the reforms undertaken in sectors including the economy, infrastructure, education, health, technology, and women’s empowerment lay a strong foundation for India’s future growth. The increase in capital expenditure to ₹12.2 lakh crore is also noteworthy. The allocations for urban-based development, dedicated freight corridor connecting the eastern and western parts of the country, and the additional funding for coastal shipping were noteworthy, Mr. Rangasamy said.
He also hailed the announcement to establish Dedicated Rare Earth Corridors in Odisha, Andhra Pradesh, Tamil Nadu, and Kerala as “a far-sighted initiative that will reduce India’s import dependence on critical mineral resources”.
The ₹10,000 crore outlay for a Bio-Pharma Power Project, enhanced allocation of an estimated ₹40,000 crore for semiconductor and electronics technology development, along with tax exemptions for IT data centers and companies until 2047 laid a strong foundation to transform India into a global technology hub, the Chief Minister said.
The revamped gram swaraj scheme promoting Khadi handicrafts, mega textile parks, the allocation of ₹10,000 crore for micro, small, and medium enterprises, and the procurement of manufactured goods by public sector undertakings will undoubtedly strengthen employment and the rural economy, Mr. Rangasamy said.
The establishment of SHE student hostels and the launch of a scheme to nurture women entrepreneurs are strong indicators of women’s empowerment, concessions for shoe exporters to import raw materials tax-free, measures to promote electric vehicles, and the removal of tax on lithium battery imports encourage India’s green economy were among the noteworthy measures, he added.
Welcoming the announcement for implementing a new income tax law, relaxation of TDS rules, cancellation of criminal proceedings for minor offenses, reduction of Tax Collected at Source for medical and education loans to 2%, and tax reforms for foreign tourism, the Chief Minister said the measures would simplify tax administration and instill confidence in the people. Besides, reducing the fiscal deficit to below 4.5%, and accepting the recommendations of the 16th Finance Commission and allocating appropriate funds to the states demonstrate fiscal responsibility, he added.
CPI State secretary A.M. Saleem said the Union Government’s 2026-27 Budget read like a “hollow financial statement” and lacked any meaningful measure to protect industrial growth amid high tariffs imposed by US President Donald Trump. While industrial production in many industrial cities like Tiruppur and Karur has been severely affected, the Budget lacked any plan to revive these small and medium-sized industries, he noted.
The agricultural sector, which is the backbone of the country, has been completely neglected in this budget. The 100-day rural employment scheme, which was the main livelihood for rural laborers, has now been rebranded, but not earmarked financial allocation, Mr. Saleem said.
He also slammed the Budget for the absence of any plan to uplift an estimated 80 crore people living in poverty and destitution. There are also no plans to create new employment opportunities.
The CPI leader noted that though an announcement was made for expansion of the textile sector, there was no mention of setting up a mega textile park in Puducherry as had been proposed.
The Budget was essentially a reflection of the BJP government’s policies that are designed to protect the economic interests of corporate companies. The government has once again betrayed the poor, the underprivileged, and the middle class, he said.
