Chennai/Thiruvananthapuram, Feb 1 (PTI) The ruling dispensations of Tamil Nadu and Kerala, two key poll-bound southern states on Sunday expressed strong dissatisfaction over the budgetary announcements made by Union Finance Minister Nirmala Sitharaman, with Chief Minister M K Stalin wondering why his state TN was not given something even in the election year, while his Kerala counterpart accused the Centre of neglecting the state.

The CMs of the two non-BJP ruled states lashed out at Sitharaman, with Kerala chief minister Pinarayi Vijayan charging her with deliberately overlooking the fact that Kerala is also part of India's map.

"As Tamil Nadu gears for the assembly elections, we expected at least this year that the state would be visible to the eyes of the Union BJP government and our voices will be heard by them. However, this year too, the BJP government has delivered only disappointment," Stalin, the DMK President, said in a statement in Chennai.

He charged that the demand from various states, including Tamil Nadu to increase the states' share of total tax revenue from 41 per cent to 50 per cent was "ignored" once again.

"The announcement that devolution will remain at 41 per cent is disappointing," he said.

Stalin said that despite the 16th Finance Commission attempts to recognise the contribution of states towards India's economic growth, it is distressing that Tamil Nadu being the second largest economy, receives a lower percentage of financial devolution.

"It appears that the tax devolution for Tamil Nadu will remain at a meager 4.097 per cent for the next 5 years," he said, and added as per estimates it would lead to a financial loss of about Rs 5,000 crore every year.

"The biggest disappointment is the PM Internship scheme which was announced amid fanfare last year with an allocation of Rs 10,831 crore. The funding has been slashed to just Rs 526 crore indicating that the scheme has received poor response", he claimed.

While noting that the government was eagerly expecting projects for the welfare of Tamil Nadu will be included in the budget, there was no mention of new projects. "The lack of new projects has showcased that the Union Government continues to treat Tamil Nadu with a step-motherly attitude", he said.

Referring to the custom of using 'Thirukkural' verse while presenting the budget speech by the finance minister, Stalin said it was absent this time. "Budget did not have any important projects for Tamil Nadu also. In total, it is a disappointment", he said.

Reacting sharply to the budget presented in Parliament, Kerala CM Vijayan said the long-standing demands of the state, including an AIIMS, seven high-speed railway corridors, and a special package for Vizhinjam port, were completely ignored.

He expressed disappointment over the Finance Commission allocation. "The decision to reject the demand for an increase in the Finance Commission share and to maintain the current status of 41 per percent is a move that weakens federal principles," he said.

Describing the budget as fully reflecting a neoliberal economic approach, the chief minister said it is designed to enrich corporations while pushing ordinary people further into poverty.

"It is not only failing to give Kerala its rightful share from the divisible pool of central funds, but the decision that revenue deficit grants need not continue is an attempt by the Centre to undermine the state's financial foundation," he said.

He noted that overall grants have been sharply cut, from Rs 2.2 lakh crore in 2021 to Rs 1.4 lakh crore now.

On the rare earth mineral corridor announced in the budget, he said the Centre's move to seize Kerala's mineral wealth is extremely dangerous.

"This budget offers no measures to tackle such challenges or to protect the country's export sector. By failing to take steps to address inflation and unemployment, the budget appears to be a deliberate attempt to slow Kerala's development," he said.

Vijayan added that from traditional industries to IT start ups, the budget ignores all, with no plans for the welfare or return of expatriates.

"Strong protests must rise against these anti-people economic policies and the Centre's continued neglect of Kerala," he said.

The opposition Congress in Kerala expressed skepticism over the Centre's rare earth mineral corridor announced in the Union Budget, alleging that it could become an attempt to hand over the state’s resources to corporates.

Leader of Opposition VD Satheesan said the policy framework for the Rare Earth Mineral Corridor should be formulated only after holding consultations with the state government.

In Tamil Nadu, NDA constituent and main opposition party, AIADMK, welcomed the budgetary proposals.

Chief Minister N Rangasamy, heading the AINRC-BJP coalition ministry in the Union Territory, said that the budget "is most progressive and focusses on every sector of development".

Tamil Nadu, Kerala and the Puducherry union territory are going to polls, scheduled in April this year. PTI CORR VGN VIJ TGB SA

Union Budget prompts leaders to denounce unchanged 41% tax devolution, steep scheme cuts and resource corridor concerns. The budget kept the Finance Commission share at 41%, with a jurisdiction-specific tax devolution of 4.097% alleged to continue for five years causing an estimated annual loss of Rs 5,000 crore; major cuts to centrally funded schemes (including a steep reduction in PM Internship funding) and no new project allocations for regional priorities were also criticised. Additional concerns included a sharp fall in overall central grants, the discontinuation of revenue deficit grants, and objections to a proposed Rare Earth Mineral Corridor as an appropriation of local resources.