Explaining his decision to boycott the Niti Aayog meeting scheduled in New Delhi under the Chairmanship of Prime Minister Narendra Modi on Saturday, Stalin said he was 'compelled' to speak in the people's forum, seeking justice due to the "discriminatory attitude" towards Tamil Nadu reflected in the budget.

The state's pleas for disaster relief to the tune of Rs 37,000 crore and Chennai Metro Rail's second phase were not heeded to, he said in a statement.

Further, the BJP runs "the government with a political motive," he added.

Tamil Nadu BJP chief K Annamalai dismissed Stalin's allegations and released data related to release of funds to Tamil Nadu for Central schemes and asserted that his party led government has eased the tax burden on the middle-class people by comparing tax slabs of UPA and BJP-led regimes.

Stalin alleged: "The budget presented on July 23 is evidence of this. In the recently held parliamentary elections, the people of various states defeated the anti-people BJP. The Budget presented by Union Finance Minister (Nirmala Sitharaman) seems like a vengeful act against the States and people who boycotted the BJP. Instead of preparing a budget for the welfare of all Indians, she has prepared a budget to take revenge against those who voted for the INDIA bloc."

The Union BJP government was disregarding Tamil Nadu continuously.

The Centre has held up funds that should have been released as usual for the Sarva Shiksha Abhiyaan, he said and alleged the former is 'adamant' that it will release funds only after agreeing to implement the NEP.

On the announcement that the stamp duty levied by the states will be reduced, he said it was done so without consulting the states. The GST system has already taken away the right of taxation powers from the states.

"When they have not even disbursed the GST compensation of Rs 20,000 crore to Tamil Nadu, who gave them the authority to alter the tax levying system of the states. The middle-class is suffering without any concession in income tax for the last 10 years. The Union Government is patting its own back for announcing a meagre tax benefit of up to Rs 17,500 per year to individual taxpayers under the NTR (New Tax Regime) when a majority can't avail that too," the CM said.

"This is not just a budget taking revenge on Tamil Nadu—it is a budget that takes revenge against entire India! This is a 'save the government budget' of BJP to remain in power. As the voice of the people of Tamil Nadu, in fact, as the voice of all the Indian people, let me say something--You (BJP) are committing mistake after mistake. You will suffer more and more defeats. Just as both houses of the Indian Parliament are in outrage, the hearts of Indian people are also raging against you. The BJP must answer," Stalin, president of the ruling DMK, said.

Reacting to Stalin, BJP leader Annamalai, in a video post on X, said this was not the first the CM has skipped the Niti Aayog meeting and he has skipped meetings held in 2022 and 2023.

Dismissing the CM's allegations, Annamalai said during the cyclone instead of 'attending to people,' Stalin was taking part in INDIA alliance meetings. "Moreover, the TN BJP sought a white paper to know what constitutes this Rs 37,000 crore." If the claim was genuine, "why is he afraid to publish it (details)? he asked.

On the allegation that the Centre is attempting to cut down funds for ongoing projects, the BJP leader rejected it saying it was without any basis. "He has to be specific instead of making such allegations."

On the Sarva Shiksha Abhiyaan scheme, Annamalai released year-wise details on fund release from 2019-20 and said a total of Rs 8,971 crore has been released. The balance payment for 2023-24 is pending because, on March 15, 2024, Chief Secretary of Tamil Nadu Shiv Das Meena wrote a letter to Centre committing to sign an MoU to set up PM Shri Schools before the commencement of the academic year 2024-25.

"The academic year has started and the MoU has still not been signed by the TN government. TN government received funds under Samagra Siksha which also includes the implementation of PM Shri Schools. Does the Chief Minister know about this?

On stamp duty, Annamalai said the Centre never said it would reduce the registration fee/stamp duty of the states. It only said it would encourage states which reduce it.

To the point on GST, Annamalai said the Chief Minister was lying about pending GST compensation. On a cut in personal tax rates for middle classes, the BJP leader made a comparison of tax slabs during the UPA regime and the BJP dispensation. "It is evident that the BJP government has relaxed taxation on salaried people. DMK which has ensured that the middle class is looted through severe price hike of milk, electricity, water charges, registration should be the last to complain about the woes of the middle-class."