Budget 2026 junks populism, skips big-bang announcements for poll-bound states

Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget on Sunday. (PTI)

• Union Budget 2026-27 skipped major populist announcements for poll-bound states
• Last year's Budget had targeted Bihar and Andhra Pradesh with specific projects
• Infrastructure and agriculture initiatives may indirectly benefit poll-bound states.

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The Narendra Modi government's Union Budget for the year 2026-27 has skipped any populist announcements for the four major poll-bound states as opposed to the previous year's Budget that saw the government roll out significant infrastructure and development projects for poll-bound Bihar and Andhra Pradesh, a state ruled by key ally, the Telugu Desam Party.

The Union Budget presented by Finance Minister Nirmala Sitharaman on Sunday skipped any major announcements for West Bengal, Assam, Kerala, Tamil Nadu or Puducherry, the states and union territory heading into polls this year.

"This Budget is a strong foundation for the flight to the vision of Viksit Bharat 2047. This Budget will provide fresh energy and speed to the 'reform express' on which India is riding today. The path-breaking reforms provide an open sky to the courageous, talented youth of India," Prime Minister Narendra Modi said in his remarks following the presentation of the Union Budget.

While the ruling Bharatiya Janata Party at the Centre is in power in Assam, it has never been in power on its own in any of the other states.

Yet, the Budget for the coming year had no major announcements that appeared specifically focused on poll-bound states when compared to last year's specific announcements targeted at two states ruled by parties that were critical to forming a government in Bihar as well as keeping it afloat at the Centre.

Major announcements seen as benefitting poll-bound states this year included dedicated corridors in states like Odisha, Kerala, Andhra Pradesh and Tamil Nadu for manufacturing of rare earth magnets; a freight corridor between Dankuni in West Bengal and Surat in Gujarat; support for coconut, cashew and coco produce which could help farmers in coastal states such as Tamil Nadu and Kerala; and the creation of turtle trails along nesting sites in Karnataka and Kerala, and bird-watching trails around Pulicat Lake, a coastal wetland shared by Andhra Pradesh and Tamil Nadu.

There were other announcements, including on the government's intent to speed up infrastructure development in teir-2 and tier-3 cities besides the expansion of inland waterways and highways, that could benefit some or all poll-bound states, the FM did not make it a point to provide any such details during her Budget speech.

Contrast this to last year's Budget that saw several announcements and outlay for Bihar and Andhra Pradesh. During the 2025 Budget, the FM announced the development of greenfield airports (including in Rajgir and Bhagalpur) and expansion of the Patna airport; establishment of a Makhana Board for processing and marketing, along with a National Institute of Food Technology, Entrepreneurship, and Management; financial support for the Western Kosi Canal project (benefiting 50,000 hectares) and capacity expansion at IIT Patna, besides continued focus on flood control measures following previous aid requests.

Andhra Pradesh, on the other hand, received commitments on fulfilling previous commitments like the development of Amaravati and the Polavaram project.

The lack of populist announcements for poll-bound states appears peculiar for West Bengal as where the ruling BJP is the primary opposition party and is making a serious bid for power in the state.

In Assam, on the other hand, the BJP is making a bid for a third consecutive term in power after forming a government first in 2016. In Kerala and Tamil Nadu, it has neither been in power nor does it have significant presence in terms of seats in the Assembly and Lok Sabha.