Union Budget 2026-27: What could be in for poll-bound West Bengal, Tamil Nadu, Kerala, Assam, Puducherry

All eyes are on the Union Budget 2026-27 to be presented by Finance Minister Nirmala Sitharaman on Sunday, 1 February. While she is expected to outline the government’s revenue and expenditure plans across sectors, the Centre is likely to place special focus on poll-bound states.

Four states and one Union Territory will hold Assembly Elections in 2026. They are Assam, West Bengal, Puducherry, Tamil Nadu and Kerala.

What could be in the Union Budget 2026-27 for these poll-bound states?

West Bengal

Earlier budgets have focused on housing, river management, health, economic growth and tourism among other areas. In December, Prime Minister Narendra Modi visited West Bengal to inaugurate and lay the foundation stone for key National Highway projects. The government said these projects will serve as a vital connecting link between Kolkata and Siliguri.

Modi also flagged off India’s first Vande Bharat Sleeper Train connecting Howrah and Guwahati (Kamakhya) from Malda Town railway station. Later, he virtually inaugurated the return Guwahati-Howrah Vande Bharat Sleeper service, strengthening long-distance rail connectivity between West Bengal and Assam.

Assam

The Centre has focused on connectivity, infrastructure, and food security across North East India, with past allocations prioritising road expansion, railway connectivity, and disaster management infrastructure.

On 30 January, Union Minister Sarbananda Sonowal, Home Minister Amit Shah and Assam Chief Minister Himanta Biswa Sarma laid foundation stones for infrastructure projects worth ₹1,715 crore in Dibrugarh. Sonowal said that Dibrugarh is taking a major step towards becoming Assam's second capital.

Tamil Nadu

The poll-bound state has traditionally focused on welfare, infrastructure, and industrial growth. Past allocations have been for education, housing schemes and semiconductor manufacturing.

Major highway projects like the Madurai–Kollam (NH-744) and Chittoor–Thatchur corridors are key infrastructure initiatives. The Madurai-Kollam ICR (Two Projects) aim to reduce travel distance and enhance connectivity between major economic hubs, directly benefiting industries and local economies.

The Madurai-Dhanushkodi Highway seeks to improve access to religious and tourist destinations, while the Chennai-Mahabalipuram-Pondicherry Corridor is to boost coastal connectivity, tourism and local industries.

Kerala

Local reports suggest Kerala is seeking special schemes in the Union Budget, with measures to strengthen infrastructure and domestic production.

Kerala Finance Minister KN Balagopal has reportedly submitted a letter to Sitharaman, making 29 demands. The letter includes demands ranging from a special economic package of ₹21,000 crore to a Defence Research and Development Corridor and a Rare Earth Corridor, as well as ₹1,000 crore in assistance for projects to reduce human-animal conflict and prevent crop damage, Manorama Online reported.

Puducherry

Puducherry's budget priorities centred on environmental sustainability and development goals. Recent plans in the Union Territory include a 4-km four-lane flyover and a 13.5-km arterial road to ease traffic congestion and improve urban mobility.

Finance Minister Nirmala Sitharaman will present the central government's budget on Sunday at 11 a.m. This will be her ninth Union Budget as Finance Minister.

The governments of these poll-bound states are hopeful that special projects will be announced, keeping the upcoming state assembly elections in mind.