Budget 2026: Poll-Bound States to Get Special Attention Again

• Union Finance Minister Nirmala Sitharaman will present her ninth Union Budget on February 1, with assembly elections due in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry.
• Experts anticipate Budget 2026 will carry clear political signalling for these poll-bound states, similar to past budgets.
• In 2021, states like Tamil Nadu, Kerala, West Bengal, and Assam received significant financial allocations for infrastructure projects and welfare schemes ahead of their elections.
• Recent budgets, including 2024 and 2025, showed a pattern of targeted allocations for states like Bihar and Andhra Pradesh, often linked to upcoming elections or political alliances.
• The 2023 Budget also featured broad-based tax relief, raising the income tax rebate limit, which experts connected to electoral considerations in states like Madhya Pradesh, Rajasthan, and Chhattisgarh.

Why It Matters: Budget 2026 is expected to strategically focus on poll-bound states with targeted allocations and political messaging.