Budget 2026: Centre’s Bias Continues, Claims Jharkhand Finance Minister  Radhakrishna Kishore

The Government of India presented the Union Budget for the financial year 2026–27 on 1 February 2026, with a total outlay of approximately Rs 53.5 lakh crore. This is being described as one of the largest budgets ever presented in the country. In this budget, capital expenditure has been increased to around Rs 12.2 lakh crore, clearly indicating that the government’s priorities lie in infrastructure development, construction, transport, and employment generation.

 The overall focus of the budget, aligned with the vision of “Viksit Bharat”, is to accelerate economic growth, increase investment, and implement development schemes on the ground through the states. Railways, roads, logistics, the semiconductor mission, MSMEs, and employment-related schemes have been given prominence. At the same time, tax relief for the middle class has been projected as a measure to boost consumption and stimulate demand in the economy.

 However, when viewed from Jharkhand’s perspective, the budget offers limited direct benefits. Rather than any major one-time or special announcement for the state, the budget creates opportunities mainly through centrally sponsored schemes and through Jharkhand’s share in tax devolution and grants to states. Jharkhand will receive its constitutionally mandated share from these allocations, which is expected to support rural development, local self-governments, healthcare, and basic infrastructure projects. The only major state-specific announcement is the proposal to establish a “NIMHANS-2–like” mental health institution in Ranchi, which is being considered a significant structural and institutional achievement for Jharkhand.

 Overall, despite the size of the Rs 53.5 lakh crore budget, the absence of any direct financial package or major announcement for Jharkhand has drawn a strong reaction from the state government. Jharkhand’s Finance Minister, Radhakrishna Kishore, has issued a sharp response, accusing the central government of adopting a discriminatory approach. In an exclusive conversation with Outlook India, he alleged that the Centre continues to treat Jharkhand in a step-motherly manner.

For the past several years, the Jharkhand government has consistently accused the Centre of failing to clear outstanding dues owed to the state. Over the last one year alone, Jharkhand's ministers have written dozens of letters to the central government and have also met Union ministers multiple times to press for payment of these dues.

 Ahead of the budget, during a meeting of finance ministers of all states held in Delhi on 10 January with Union Finance Minister Nirmala Sitharaman, Jharkhand Finance Minister Radhakrishna Kishore had specifically raised several demands related to the state. However, none of these demands found any mention or reflection in the Union Budget.

 Expressing his displeasure, Kishore told Outlook, “This budget shows that the central government is continuing its step-motherly attitude towards Jharkhand. States where the BJP or BJP-led alliances are in power are being supported, while states where the BJP is not in power are being denied grants based on need, and even the state’s rightful share in central taxes is not being released. Since Independence, the Centre and the states have worked together, but the BJP government is destroying that political essence.”

 According to the Jharkhand government, the Centre owes the state Rs 1.36 lakh crore as compensation related to land and other issues arising from mining activities. The state government has repeatedly raised this demand. During the 10 January meeting in Delhi, Finance Minister Radhakrishna Kishore also placed this issue before Union Finance Minister Nirmala Sitharaman.

 Out of the total Rs 1,36,000 crore outstanding, Rs 1,01,142 crore is pending as land compensation, Rs 32,000 crore under the Common Cause framework, and Rs 2,500 crore as coal royalty. The Jharkhand government has been continuously pressuring the Centre for recovery of these dues and has also spoken about taking legal action in this regard.

 Speaking to Outlook on this issue, Kishore said, “In the pre-budget meeting, we requested Nirmala Sitharaman to release the Rs 1.36 lakh crore that is due to us from coal companies. In addition, we demanded compensation for the additional burden of around Rs 4,000 crore that Jharkhand is facing under the Goods and Services Tax (GST) regime. However, no announcement was made on either of these issues.”

Another major concern raised by the Jharkhand Finance Minister relates to changes made after the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was renamed VB–G RAM G — Viksit Bharat: Guarantee for Rozgar and Ajeevika Mission (Gramin). Under the revised provisions of this law, the financial burden on states has increased significantly.

 Earlier, the cost-sharing pattern under MGNREGA required states to contribute 10 percent, while the Centre bore 90 percent of the expenditure. Under the new framework, this ratio has been altered to 40:60, with states now required to bear 40 percent of the cost.

 Radhakrishna Kishore stated that this change alone has imposed an additional annual financial burden of approximately Rs 5,500 crore on Jharkhand. The state has demanded that the Centre compensate this additional burden. He said that this concern was also raised before Nirmala Sitharaman, but once again, there was no mention of it in the Union Budget.

 Apart from these financial demands, Jharkhand had also hoped for announcements related to agriculture, irrigation, and transport infrastructure, particularly the introduction of new trains. However, no such announcements were made.

On this issue, Kishore told Outlook, “We demanded new trains and railway lines, but nothing was given. Jharkhand contributes one of the highest revenues to Indian Railways, yet the state gets nothing in return.”

Kishore further argued that due to the Centre’s policy decisions, Jharkhand is suffering significant revenue losses. He said the state’s only demand was that the Centre compensate for this loss.

When asked about the scale of challenges Jharkhand might face if the Centre continues to withhold payments despite repeated demands, Kishore responded that the state would not face any major crisis. He asserted that Jharkhand’s financial management is very strong.

 He said that the state government has already instructed its officials, both earlier and again now, to assume that as long as the BJP or a BJP-led government remains in power at the Centre, Jharkhand must focus on standing on its own feet in terms of revenue generation.

 Kishore also claimed that the BJP would not come to power in Jharkhand for the next 20 years. He argued that the people of the state are watching the alleged step-motherly treatment meted out to Jharkhand by the BJP, and that this will be politically answered by the public in the 2029 Jharkhand Assembly elections.