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4 Feb 2026·Source: The Hindu
3 min
Polity & GovernanceEconomyNEWS

Tamil Nadu CM Stalin Criticizes Union Budget as Disappointing

Tamil Nadu CM M.K. Stalin expresses disappointment with the Union Budget 2026-27.

Tamil Nadu CM Stalin Criticizes Union Budget as Disappointing

Photo by SIBY

Tamil Nadu Chief Minister M.K. Stalin criticized the Union Budget for 2026-27, calling it a “huge disappointment” for the people of Tamil Nadu. He stated that the people of the State would teach the NDA a lesson in the coming Assembly election. Stalin expressed his disappointment, stating that there was no change and that the budget was a “huge disappointment” to the people. He also stated that he does not consider anyone as an enemy in politics, but sees all as friends.

Key Facts

1.

Critic: M.K. Stalin

2.

Budget: Union Budget 2026-27

3.

State: Tamil Nadu

UPSC Exam Angles

1.

GS Paper II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2.

GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

3.

Potential question types: Statement-based, analytical questions on fiscal policy and budget allocation.

More Information

Background

The Union Budget is an annual financial statement presenting the estimated revenues and expenditures of the government for a financial year, which runs from April 1 to March 31. The budget's origins lie in the need for governments to manage public finances effectively. The process is governed by Article 112 of the Indian Constitution, which mandates the presentation of the budget before the Parliament. Over time, the budget has evolved from a mere statement of accounts to a tool for economic planning and social development. Key milestones include the introduction of Five-Year Plans, which shaped budgetary allocations towards specific developmental goals. Amendments and policy changes have also influenced the budget's focus, such as the shift towards liberalization in the 1990s. The legal and constitutional framework surrounding the budget includes the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which aims to ensure fiscal discipline and reduce the fiscal deficit. Various parliamentary committees scrutinize the budget proposals, providing checks and balances on government spending.

Latest Developments

Recent government initiatives have focused on increasing capital expenditure to boost economic growth. Schemes like PM Gati Shakti National Master Plan aim to improve infrastructure and connectivity, influencing budgetary allocations. The emphasis on digital infrastructure and green energy reflects a shift towards sustainable development. Ongoing debates surround the balance between fiscal consolidation and growth-oriented spending. Institutions like NITI Aayog play a crucial role in shaping budget priorities and recommending policy interventions. Different stakeholders, including states, industries, and economists, have varying perspectives on the budget's impact. The future outlook involves continued efforts to enhance revenue mobilization and improve the efficiency of public spending. Government targets include achieving specific fiscal deficit levels and promoting inclusive growth. Upcoming milestones include the implementation of new tax reforms and the expansion of social welfare programs.

Frequently Asked Questions

1. What are the key facts related to Tamil Nadu CM's criticism of the Union Budget 2026-27 that are important for the Prelims exam?

For the Prelims exam, remember that Tamil Nadu CM M.K. Stalin criticized the Union Budget 2026-27, calling it disappointing for Tamil Nadu. Also, note that he belongs to Tamil Nadu. Focus on the fact that this is related to the Union Budget and state-center financial relations.

2. What is the Union Budget and why is it important?

The Union Budget is an annual financial statement that shows the government's estimated income and expenses for a financial year (April 1 to March 31). It is important because it outlines the government's economic priorities and how it plans to allocate resources. The budget process is governed by Article 112 of the Indian Constitution.

3. How might the Tamil Nadu CM's criticism of the Union Budget affect the relationship between the state and the central government?

The criticism could strain the relationship between Tamil Nadu and the central government, especially if the state feels its needs are not being adequately addressed in the budget. This could lead to disagreements on resource allocation and policy implementation. It's important to remember that the CM stated the people of Tamil Nadu would teach the NDA a lesson in the coming Assembly election.

4. What is the constitutional basis for the Union Budget?

The Union Budget is mandated by Article 112 of the Indian Constitution, which requires the President to lay before both Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for each financial year.

5. Why is the Tamil Nadu CM's reaction to the Union Budget newsworthy?

The Tamil Nadu CM's reaction is newsworthy because it highlights potential disagreements between the state and central governments regarding financial allocations and priorities. Such criticisms can influence political dynamics and policy debates, especially in the context of upcoming elections. It also reflects the ongoing debate about fiscal federalism and resource distribution.

6. What recent government initiatives might have influenced the Union Budget 2026-27?

Recent initiatives like the PM Gati Shakti National Master Plan, which aims to improve infrastructure and connectivity, likely influenced budgetary allocations. The emphasis on digital infrastructure and green energy also reflects a shift towards sustainable development, impacting budget priorities.

Practice Questions (MCQs)

1. Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act, 2003: 1. It mandates the central government to reduce the fiscal deficit to 3% of GDP. 2. It provides a framework for fiscal discipline and sustainable public debt management. 3. It was enacted in response to the economic reforms of the 1990s. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct. The FRBM Act, 2003, aims to reduce the fiscal deficit to 3% of GDP. It establishes a legal framework for fiscal discipline. It was indeed enacted in response to the economic reforms of the 1990s to ensure fiscal prudence. Therefore, option D is the correct answer.

2. In the context of Indian Polity, which article of the Constitution mandates the presentation of the Union Budget before the Parliament?

  • A.Article 110
  • B.Article 112
  • C.Article 280
  • D.Article 360
Show Answer

Answer: B

Article 112 of the Indian Constitution mandates the presentation of the Union Budget before the Parliament. Article 110 defines Money Bills. Article 280 deals with the Finance Commission. Article 360 deals with financial emergency provisions. Therefore, option B is the correct answer.

3. Which of the following statements is NOT correct regarding the role of NITI Aayog? A) It serves as a think tank for the government. B) It plays a role in shaping budget priorities. C) It has the power to allocate funds to states. D) It recommends policy interventions.

  • A.It serves as a think tank for the government.
  • B.It plays a role in shaping budget priorities.
  • C.It has the power to allocate funds to states.
  • D.It recommends policy interventions.
Show Answer

Answer: C

NITI Aayog serves as a think tank, shapes budget priorities, and recommends policy interventions. However, it does not have the power to allocate funds to states. This power lies with the Finance Commission and the Ministry of Finance. Therefore, option C is the correct answer.

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