Finance Minister Nirmala Sitharaman on Thursday fiercely rejected claims from opposition parties that Prime Minister Narendra Modi’s government has only focused on states ruled by BJP and its allies in the 2025-26 Union Budget. Addressing the Rajya Sabha, Sitharaman termed these allegations as “unfounded” and clarified that the government had consulted all states, regardless of their political affiliations, before drafting the Budget.
Strong Rebuttal to Opposition Claims
Responding to the opposition’s repeated claims that the Union Budget benefits only BJP-ruled states, Sitharaman asserted that the accusations were without basis. She questioned, “Is it a Bihar bonanza Budget? Is it a Budget for only one state? Does it mean no other state gets anything?”
The finance minister went on to counter the narrative, stating that the Centre has taken significant steps to develop various states, including Punjab, Tamil Nadu, and Kerala.
“Whether it is Bihar or BJP-ruled states, these are just unfounded allegations. I want to dispel that notion from the members,” she emphasized.
Acknowledging Contributions to Opposition-Ruled States
Sitharaman was keen to highlight the government’s contributions to Tamil Nadu, her home state, which is ruled by the opposition DMK. She emphasized the Centre’s investments in infrastructure projects in Tamil Nadu, and in a direct response to DMK members, she spoke in Tamil, listing key development projects for the state.
She also pointed to Prime Minister Modi’s efforts in lifting the ban on Jallikattu, an issue of significance for many in Tamil Nadu, saying, “It was Modi who, despite the silent partnership and the result which was against the people of Tamil Nadu, removed the ban on Jallikattu.”
Centre’s Investment in Kerala and Other States
On Kerala, Sitharaman highlighted the development of over 1,300 kilometers of national highways in the state since 2014. She reassured the people of Kerala, who have often voiced concerns over the Centre’s neglect of their needs, that substantial investments have been made in their region.
She also referenced Telangana, which, she noted, was once a revenue-surplus state but now faces a revenue deficit. Telangana, which is currently governed by the Congress, was mentioned as an example of states where fiscal management could be improved.
Capital Expenditure and Budget Figures
In her near two-hour-long reply to the discussion on the Budget, Sitharaman stressed that there has been no reduction in capital expenditure in the Union Budget. For the fiscal year 2025-26, the total effective capital expenditure is proposed at Rs 15.48 lakh crore, which constitutes 4.3% of the GDP. Additionally, the core capital expenditure for the Centre is projected to be Rs 11.21 lakh crore or 3.1% of the GDP, an increase from the current fiscal year’s estimates.
P. Chidambaram’s Criticism of Congress-Ruled States
The finance minister also took the opportunity to call out the Congress-ruled states, particularly Karnataka and Telangana, accusing them of not spending adequately on capital expenditure. “I would urge P. Chidambaram, the former finance minister, to counsel his own party-ruled states to increase their capital expenditure,” she said.
Opposition Walks Out in Protest
The Rajya Sabha session saw a walkout from several opposition parties, who continued to protest the Budget’s alleged favouritism towards BJP-led states. Despite the protests, Sitharaman’s clarifications and rebuttals to the opposition’s claims dominated the discussion.
Conclusion
Finance Minister Nirmala Sitharaman’s speech aimed to quell the growing discontent within the opposition regarding the 2025-26 Union Budget, defending the government’s approach of equal development across all states. As the debate continues, it is clear that the opposition remains dissatisfied with the perceived allocation of funds, while the government maintains that the Budget is designed to benefit all states, irrespective of their political leadership.
