It is beyond doubt that state budgets have become very influential in the emergence
and functioning of modern states and societies worldwide. In this paper we go beyond
the narrow technical and objective roles of state budgets, into how state budgets with
provision for affirmative action have become a tool for racial differentiation. We
argue that budgetary allocations for affirmative action not only create a pattern of
visibility and power which in turn shape racial discourse, but future budgets also get
shaped by such conditions.