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New Delhi: Finance Minister Nirmala Sitharaman announced the Union Budget on Sunday (February 1) which included new initiatives targeted towards the poll-bound states. West Bengal, Tamil Nadu, Assam and Kerala, are among the states which are set to have assembly elections this year.  

Sitharaman announced a rare earth metals package for four states, Odisha, Kerala, Tamil Nadu and Andhra Pradesh during her speech presenting the Union Budget 2026 today. Out of these, Kerala and Tamil Nadu are set to have Assembly elections in 2026. "The scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing," the finance minister said in her speech.

Declaring important aspects of the government's economic agenda, the Finance Minister said, "We have ensured that citizens benefit from every action of the Government, undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services to people."

West Bengal

West Bengal saw a major infrastructure boost in this year's Budget, with the announcement of a high-speed rail corridor connecting Siliguri with Varanasi in Uttar Pradesh. The Finance Minister also proposed a dedicated freight corridor from Dankuni in the Kolkata Metropolitan Region to Surat in Gujarat, and a plan to push an additional 4,000 electric buses.

Development of an integrated East Coast Industrial Corridor with Durgapur being a key checkpoint, and the creation of five tourism destinations in the five 'Purvodaya' states were also among the Budget proposals which would impact West Bengal, where elections are due in April–May this year.

Assam

A new scheme to develop Buddhist circuits in the BJP-ruled state was announced in the Budget. The scheme will include initiatives aimed to preserve temples and monasteries, and improve pilgrim amenities.

The finance minister presented her ninth consecutive Budget where she made several key announcements while charting out the consolidated financial roadmap for the country for the upcoming fiscal year.  

The National Mental Health Institute in Assam's Tezpur will be upgraded to a Regional Apex Institution, the Finance Minister announced.  

Kerala and Tamil Nadu

Besides the rare earth metals package for Tamil Nadu and Kerala, the Budget also made some other key announcements for the two coastal states.

Two of the proposed high-speed rail corridors are in Tamil Nadu, with Chennai being connected to the IT hubs of Bengaluru and Hyderabad. Tamil Nadu would also be getting a bird-watching trail along the Pulicat lake. The development of the archaeological site of Adichanallur in TN's Thoothukudi district as a cultural destination has also been announced.

"India is the world's largest producer of coconuts. About 30 million people, including nearly 10 million farmers, depend on coconuts for their livelihood. To further enhance competitiveness in coconut production, I propose a Coconut Promotion Scheme to increase production and enhance productivity through various interventions. including replacing old and non-productive trees with new saplings/plants/varieties in major coconut growing states," Sitharaman further announced. Both Tamil Nadu, and Kerala are expected to benefit from the Coconut Promotion Scheme.  

Sitharaman also announced the establishment of turtle trails along key nesting sites in the coastal areas of Odisha, Karnataka and Kerala.

The BJP has struggled to make any significant electoral gains in both the states, with an eye out for the upcoming polls. The Finance Minister wore a Kanjeevaram silk saree while presenting the Budget. The Kanjeevaram saree originated from Tamil Nadu, and the FM's attire hailed the age-old weaving legacy of the poll-bound state. This was the first Budget in India's fiscal history to be presented on a Sunday, and the speech lasted for one hour and 25 minutes.