In response to a question why the Budget 2026 did not announce any bonanza for the poll-bound states specifically, Union Finance Minister Nirmala Sitharaman in her post-Budget press conference on Sunday emphasised that while the Budget introduces transformative projects for states approaching assembly elections, the allocations are designed to drive national economic momentum across both poll-bound and non-poll-bound regions.
Addressing the balance of allocations, Sitharaman said, “I think there is enough to cover all the election states. If I do, you will ask me why have I done it only for the election states. Now I have it for election and non-election states as well. You want me to spell out what has been done only for the election states, I am quite happy to do it.”
The four states and one Union Territory scheduled for assembly elections later this year are Assam, West Bengal, Puducherry, Tamil Nadu and Kerala.
A central pillar of the 2026 Budget is the expansion of industrial and freight infrastructure to lower logistics costs and support sustainable cargo movement.
A new East-West Dedicated Freight Corridor will connect Dankuni in West Bengal to Surat in Gujarat, creating a high-capacity link between eastern and western industrial hubs.
Additionally, the government will develop an integrated industrial corridor along the East Coast, featuring a significant manufacturing and trade node at Durgapur in West Bengal.
Strategic mining and critical mineral facilities
To reduce import dependency on rare earths and counter global supply chain vulnerabilities, the government is launching a massive push for domestic mineral processing.
The Budget proposes supporting the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu in establishing dedicated rare-earth corridors.
These corridors will focus on the entire value chain including mining, processing, research and manufacturing building upon the scheme for rare-earth permanent magnets launched in 2025.
The Ministry of Railways received a significant boost with the announcement of seven new high-speed rail corridors designed as growth connectors.
Two of these corridors—Hyderabad-Chennai and Chennai-Bengaluru—are set to directly benefit Tamil Nadu’s capital.
For urban mobility, the Budget makes provisions for 4,000 e-buses and allocates Rs20,000 crore over five years for infrastructure development in Tier 2 and Tier 3 cities, specifically including those in Assam.
Eco-tourism and environmental conservation
The 2026 fiscal plan integrates environmental preservation with economic opportunity through specialized tourism initiatives.
Five new tourism destinations will be established across the Purvodaya states to highlight the cultural and natural heritage of eastern India.
Conservation efforts include the establishment of turtle trails at key nesting sites in coastal Odisha, Karnataka and Kerala.
Additionally, birdwatching trails will be developed at Pulicat Lake, spanning the border of Tamil Nadu and Andhra Pradesh, to promote sustainable local tourism.
Healthcare and mental health infrastructure
Strengthening regional healthcare remains a priority, with a specific focus on mental health facilities and specialized medical hubs.
The Budget proposes the establishment of NIMHANS-2 and the modernisation of existing National Mental Health Institutes in Ranchi and Tezpur, Assam.
These initiatives aim to upgrade the quality of psychiatric care and research across the eastern and north-eastern regions of the country.
