Top News

Union Budget – The Union Budget for 2026–27 presented by the central government has triggered sharp political reactions from opposition leaders across the country, with critics questioning its priorities, regional balance, and immediate impact on financial markets. Several opposition parties argued that the budget does little to address public welfare while favouring select interest groups.

Akhilesh Yadav Raises Questions on Market Reaction and Budget Intent

Samajwadi Party president Akhilesh Yadav on Monday launched a strong critique of the Union Budget, alleging that its design primarily benefits what he described as the “invisible friends” of the ruling Bharatiya Janata Party. His remarks came shortly after the budget presentation, amid visible volatility in the stock market.

Yadav pointed to the decline in the Sensex following the announcement and questioned the government’s economic direction. He asked how a budget could inspire confidence when market indicators reacted negatively and raised concerns about the future performance of both the stock market and the rupee.

Referring to infrastructure projects in Uttar Pradesh, Yadav cited the defence corridor initiative, for which thousands of acres of land have reportedly been acquired. He questioned the tangible outcomes of such projects, suggesting that large-scale land acquisition has not translated into visible benefits for the broader population.

He further argued that only a small portion of the budget appears to directly serve ordinary citizens, including farmers, and claimed that public welfare has not been given adequate emphasis.

Kerala MPs Protest in Parliament Over Allocation Concerns

Opposition Members of Parliament from Kerala staged a protest within the Parliament complex, criticising the Union Budget as being unfavourable to the state. They described the financial plan as “anti-Kerala,” alleging that it overlooks the state’s specific developmental and fiscal needs.

The protesting MPs claimed that Kerala continues to face challenges related to revenue sharing, disaster management support, and infrastructure funding, which they say were not sufficiently addressed in the latest budget proposals.

Vaiko Alleges Discrimination Against Tamil Nadu

Marumalarchi Dravida Munnetra Kazhagam general secretary Vaiko also expressed dissatisfaction with the budget, calling it disappointing and accusing the central government of sidelining Tamil Nadu. He argued that the state’s economic priorities, particularly in key industrial regions, have been neglected.

Vaiko highlighted textile hubs such as Coimbatore, Tiruppur, Karur, and Erode, stating that long-standing demands related to these centres were not reflected in the budget. According to him, the absence of targeted measures for these industries raises concerns about the future growth and competitiveness of Tamil Nadu’s manufacturing sector.

He added that the budget presented by Finance Minister Nirmala Sitharaman failed to acknowledge the state’s contributions to the national economy and did not provide adequate support for its industrial development.

Government Emphasises Infrastructure-Led Growth Strategy

Despite the criticism, the Union Budget places a strong emphasis on infrastructure spending. Public capital expenditure for the 2026–27 financial year has been increased to Rs 12.2 lakh crore, up from Rs 11.2 lakh crore in the previous year. The government has positioned this rise as a cornerstone of its strategy to drive long-term economic growth.

Among the major infrastructure announcements are plans to develop seven high-speed rail corridors linking key urban centres. The budget also outlines new dedicated freight corridors aimed at improving logistics efficiency and reducing transportation costs for businesses.

In addition, the government has announced the operationalisation of 20 national waterways over the next five years, promoting environmentally sustainable modes of transport and easing pressure on road and rail networks.

Tax Reforms and Simplification Measures Announced

On the taxation front, one of the most significant announcements was the confirmation that the New Income Tax Act, 2025, will come into force from April 2026. The government stated that the new framework will introduce simplified rules and redesigned forms to make compliance easier for taxpayers.

The budget also proposes reductions in Tax Collected at Source rates for overseas tour packages, as well as for education and medical expenses under the Liberalised Remittance Scheme. These measures are intended to reduce the financial burden on individuals making legitimate foreign payments and improve overall tax administration efficiency.

While the government has defended the budget as growth-oriented and reform-driven, opposition parties continue to argue that its benefits are unevenly distributed, setting the stage for continued debate both inside and outside Parliament.