Chennai, Feb 1 (PTI) The Union Budget 2026-27 evoked mixed reactions from Tamil Nadu's politicians on Sunday, with leaders divided over its impact on the state’s fiscal health and development.

While the BJP and its allies hailed the budget as a roadmap for the state's industrial and infrastructural growth, the opposition termed it a missed opportunity for the farming community and high-performing states.

Senior BJP leader Tamilisai Soundararajan lauded Prime Minister Narendra Modi for according priority to Tamil Nadu through massive infrastructure projects.

Speaking to reporters, she highlighted the significance of the "Rare Earth Corridor" and high-speed rail connectivity linking Chennai with Hyderabad and Bengaluru.

"The Prime Minister is not like those who announce schemes only when elections are near. He has consistently allocated funds, including 11 lakh crore rupees for Tamil Nadu's development," she said.

Responding to criticisms from Chief Minister M K Stalin, Soundararajan claimed that the budget empowers all sections of society, specifically citing the establishment of working women's hostels in every district and special incentives for cashew and coconut farmers.

"As a doctor, I am particularly happy about the focus on medical tourism and tax relaxations for cancer and rare disease medications. This is a budget for the youth and for the future," she added.

PMK President Dr Anbumani Ramadoss welcomed the 10 per cent hike in capital expenditure to Rs 12.20 lakh crore, noting that it would boost employment and infrastructure across the country.

He specifically appreciated the inclusion of a cultural centre in Adichanallur and tourism development projects for Pulicat Lake and the Podhigai hills.

However, Ramadoss expressed disappointment over the vertical devolution of taxes. "While the allocation for agriculture has increased by 7 per cent, it is disappointing that the states' share in central taxes remains at 41 per cent as per the 16th Finance Commission recommendations. We urge the government to increase this to 50 per cent," he said.

He also cautioned the government to ensure that the development of rare mineral corridors does not adversely affect the environment or local livelihoods.

MNM founder Kamal Haasan accused the Union government of ignoring the state's critical development needs.

"States that perform well economically deserve consistent support in the Union Budget, not just pre-election rewards. Fortunately, Tamil Nadu's turn will come in 2026," Haasan wrote on his official 'X' account.

The actor-politician further criticised the government for failing to provide a legal guarantee for Minimum Support Price (MSP), calling the measures for farmers "mere lip service".

He did, however, find a silver lining in the fiscal policy, stating, "I appreciate the progressive income tax reforms that empower taxpayers, the true drivers of our economy." PTI JR KH

Union Budget 2026-27 split Tamil Nadu leaders over infrastructure gains and concerns on tax devolution and farmer protections. Union Budget 2026-27 drew praise for increased capital expenditure and major infrastructure initiatives-such as a Rare Earth Corridor, high-speed rail, and tourism projects-and for targeted measures including working women's hostels, incentives for cashew and coconut farmers, and tax relaxations for certain medical treatments. Critics urged a larger share of central taxes to states (arguing 41 percent is insufficient), sought a legal guarantee for Minimum Support Price for farmers, and warned that rare mineral corridor development must protect environment and local livelihoods.