No state neglected in Budget: Nirmala Sitharaman on Opposition claim of ‘favour’ to Bihar

Finance Minister Nirmala Sitharaman on Thursday said no state had been neglected in the Union Budget 2025-26.

While replying to the debate on Budget proposals in the Rajya Sabha, Sitharaman also criticised past governments, particularly the economic policies under former Finance Minister P Chidambaram during Manmohan Singh’s tenure as the PM. She said while Manmohan Singh opened up the economy, key reforms stagnated until late Atal Bihari Vajpayee initiated infrastructure and structural reforms.

On the charge that the Budget had been generous to election-bound Bihar and treated BJP-ruled states favourably, Sitharaman said such claims were unfounded.

Answering allegations that the Centre was withholding MGNREGA and Pradhan Mmantri Awas Yojana–Rural funds due to West Bengal, Sitharaman said Rs 25,798 crore had been allocated to West Bengal since 2016-17 under the PMAY (Rural).

However, funding for the PMAY (Rural) was stopped in 2018 following complaints about ineligible households being included in the list of beneficiaries and eligible households being dropped from the list. “Branding violations” is also a reason for withholding the funds, Sitharaman said referring to West Bengal Government policies of giving a new name to Centrally-funded schemes. Sitharaman said similar complaints were also received with regard to implementation of MGNREGA.

Sitharaman also listed various steps taken by the Modi government for Kerala, including industrial corridor at Palakkad, airport at Kannur, site clearance for airport at Kollayam, building 1,300 km of national highway in the state, Kochi Metro, two Vande Bharat trains for the state, etc.

Regarding Tamil Nadu, she said Rs 66,266 crore had been spent by the Centre thus far for the Chennai Metro project, Rs 30,000 crore had been spent for the defence industrial corridor and laying of foundation stone for AIIMS, Madurai. The government had removed the ban on the traditional Tamil sport of Jalikattu, she said.

The FM’s remarks regarding fund allocated for development of Kerala, Tamil Nadu and West Bengal — ruled by parties opposing the BJP at the Centre — drew strong reaction from members representing these parties.

Rajya Sabha members affiliated to West Bengal’s ruling TMC walked out in protest against the “derogatory” comments allegedly made by Sitharaman about the Mamata Banerjee-led West Bengal Government.

On concerns over the depreciation of the rupee, Sitharaman said major Asian currencies depreciated during from October 2021 to January 2025.