No freebies, only long-term support for poll-bound states in Budget 2026

Unlike 2024 and 2025 budgets, finance minister Nirmala Sitharaman avoided any major state-specific announcements in this budget. But poll-bound Assam, Kerala, West Bengal and Tamil Nadu have been covered through new projects and announcements.

The FM announced plans to develop Rare Earth Mineral Corridors in Tamil Nadu, Kerala, Odisha and Andhra Pradesh. The global importance of rare earth minerals has increased manifold with the growth of EVs and renewable energy. The Centre will ensure long-term government support to Tamil Nadu and Kerala. The government has also proposed seven new high-speed rail corridors. Two of the corridors -- Hyderabad-Chennai and Chennai-Bengaluru -- are going to benefit Tamil Nadu. Similarly, West Bengal will benefit from the proposed Siliguri-Varanasi corridor. West Bengal has also got a dedicated freight corridor from Dankuni to Surat, making the movement of cargo faster between two coastal states.

With elections in Kerala, Tamil Nadu and Puducherry, the focus of agriculture in this budget has been on coconut farmers as the finance minister proposed a 'Coconut Promotion Scheme' to increase production and enhance productivity. Kerala, being the leading state, is set to get the maximum of it. The government has decided to extend support for agar trees in northeast states, mainly Assam, to increase productivity and marketing. Major emphasis has been on the promotion of tourism. The proposal on the Buddhist Circuit in the northeast will increase investment and tourist footfall. The government has also announced development of an integrated East Coast Industrial Corridor with a well-connected node at Durgapur in West Bengal and creation of five tourism destinations in five states.


Development of mountain trails includes Podhigai Malai in Tamil Nadu. Adichanallur in Tamil Nadu, one of the 15 archaeological sites, will be developed as a vibrant cultural destination. Turtle trails along key coastal nesting sites in Kerala and bird watching trails at Pulicat Lake in Andhra and Tamil Nadu have also been announced.

Schemes have been announced to promote fisheries and develop reservoirs and promote women-led startups in coastal states. The budget aims for long-term sustainable growth for poll-bound states rather than offering short-term financial packages.