What is the story about?
Union Finance Minister Nirmala Sitharaman will present her ninth Union Budget on February 1. Like 2021, 2023 and 2024, this too is an electorally crucial year, with assembly elections due in West Bengal, Tamil Nadu, Kerala, Assam and Puducherry.
The Bharatiya Janata Party has been keen on expanding its footprint in West Bengal, Tamil Nadu and Kerala. And if past Union Budgets are any indication, experts believe Budget 2026 could carry clear political signalling, both in symbolism and substance, for these poll-bound states.
Looking back at 2021
The last time these four states went to the polls was in 2021. That Budget was heavy on messaging. Sitharaman chose a traditional laal paad saree from West Bengal and quoted Rabindranath Tagore during her speech. But the symbolism was backed by sizeable financial announcements.
Tamil Nadu was allocated ₹1.03 lakh crore for road and highway projects, including the Madurai–Kollam corridor and the Chittoor-Thatchur corridor, with construction slated to begin in 2022. Kerala received allocations worth ₹65,000 crore, including a 600 km stretch of the Mumbai-Kanyakumari corridor passing through the state. West Bengal saw highway project announcements worth ₹25,000 crore, including an economic corridor connecting Kolkata and Siliguri. Assam was allocated ₹34,000 crore.
That Budget also proposed ₹1,000 crore welfare scheme for tea garden workers, with a special focus on women, in West Bengal and Assam. A fishing harbour at Petuaghat in East Midnapore was announced, along with phase two of the Kochi Metro, an 11.5 km stretch with a projected cost of ₹1,957 crore.
The pattern continues
Fast forward to 2024. In July, Bihar was sanctioned ₹11,500 crore for flood mitigation, a move widely seen as aimed at keeping Chief Minister Nitish Kumar, a key NDA ally, on board. The state also received highway project announcements worth ₹26,000 crore.
Andhra Pradesh, another NDA-ruled state, was allocated ₹15,000 crore for the development of Amaravati, benefiting Chief Minister N Chandrababu Naidu.
The trend became even more pronounced in the 2025 Budget, the year Bihar went to the polls. Sitharaman wore a Madhubani saree, underlining the focus on the state. That Budget announced the setting up of a Makhana Board, expansion of the Patna airport, four new greenfield airports and a brownfield airport at Bihta.
Financial assistance was proposed for the Western Kosi Canal ERM project in the Mithilanchal region, expected to benefit farmers cultivating nearly 50,000 hectares of land. The Budget also announced a National Institute of Food Technology, Entrepreneurship and Management in Bihar, along with the expansion of IIT infrastructure in the state.
Even earlier, in 2023, ahead of assembly elections in multiple states, including Madhya Pradesh, Rajasthan and Chhattisgarh, the Budget delivered broad-based tax relief. The income tax rebate limit was raised from ₹5 lakh to ₹7 lakh, a move experts linked to electoral considerations.
All eyes on Budget 2026
With West Bengal, Tamil Nadu, Kerala, Puducherry and Assam heading to the polls this year, expectations are high. Going by recent history, Budget 2026 may not just be about fiscal priorities and macroeconomic signals. It could also be a carefully calibrated political document, speaking directly to voters in key battleground states, just as it has in previous election cycles.
The Bharatiya Janata Party has been keen on expanding its footprint in West Bengal, Tamil Nadu and Kerala. And if past Union Budgets are any indication, experts believe Budget 2026 could carry clear political signalling, both in symbolism and substance, for these poll-bound states.
Looking back at 2021
The last time these four states went to the polls was in 2021. That Budget was heavy on messaging. Sitharaman chose a traditional laal paad saree from West Bengal and quoted Rabindranath Tagore during her speech. But the symbolism was backed by sizeable financial announcements.
Tamil Nadu was allocated ₹1.03 lakh crore for road and highway projects, including the Madurai–Kollam corridor and the Chittoor-Thatchur corridor, with construction slated to begin in 2022. Kerala received allocations worth ₹65,000 crore, including a 600 km stretch of the Mumbai-Kanyakumari corridor passing through the state. West Bengal saw highway project announcements worth ₹25,000 crore, including an economic corridor connecting Kolkata and Siliguri. Assam was allocated ₹34,000 crore.
That Budget also proposed ₹1,000 crore welfare scheme for tea garden workers, with a special focus on women, in West Bengal and Assam. A fishing harbour at Petuaghat in East Midnapore was announced, along with phase two of the Kochi Metro, an 11.5 km stretch with a projected cost of ₹1,957 crore.
The pattern continues
Fast forward to 2024. In July, Bihar was sanctioned ₹11,500 crore for flood mitigation, a move widely seen as aimed at keeping Chief Minister Nitish Kumar, a key NDA ally, on board. The state also received highway project announcements worth ₹26,000 crore.
Andhra Pradesh, another NDA-ruled state, was allocated ₹15,000 crore for the development of Amaravati, benefiting Chief Minister N Chandrababu Naidu.
The trend became even more pronounced in the 2025 Budget, the year Bihar went to the polls. Sitharaman wore a Madhubani saree, underlining the focus on the state. That Budget announced the setting up of a Makhana Board, expansion of the Patna airport, four new greenfield airports and a brownfield airport at Bihta.
Financial assistance was proposed for the Western Kosi Canal ERM project in the Mithilanchal region, expected to benefit farmers cultivating nearly 50,000 hectares of land. The Budget also announced a National Institute of Food Technology, Entrepreneurship and Management in Bihar, along with the expansion of IIT infrastructure in the state.
Even earlier, in 2023, ahead of assembly elections in multiple states, including Madhya Pradesh, Rajasthan and Chhattisgarh, the Budget delivered broad-based tax relief. The income tax rebate limit was raised from ₹5 lakh to ₹7 lakh, a move experts linked to electoral considerations.
All eyes on Budget 2026
With West Bengal, Tamil Nadu, Kerala, Puducherry and Assam heading to the polls this year, expectations are high. Going by recent history, Budget 2026 may not just be about fiscal priorities and macroeconomic signals. It could also be a carefully calibrated political document, speaking directly to voters in key battleground states, just as it has in previous election cycles.
