Published Feb 01, 2026 | 10:25 PM ⚊ Updated Feb 01, 2026 | 10:25 PM
Leader of Opposition in the Assembly VD Satheesan said the Budget raised doubts about whether Kerala was being treated as an integral part of India.
Synopsis: The Union Budget 2026–27 has drawn fierce criticism from both the ruling CPI(M) and the Opposition Congress in Kerala, with both parties calling for united protests against what they describe as the Centre’s “vindictive approach” and “extraordinary neglect” of the state. They pointed to Kerala’s exclusion from major infrastructure projects, the absence of long-pending demands such as AIIMS and new railway lines, and the denial of dues and grants recommended by the Finance Commission.
The ruling CPI(M)-led Left Democratic Front (LDF) and the Opposition Congress-led United Democratic Front (UDF) in Kerala have condemned the Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman on Sunday, 1 February, and called for united protests against the “extraordinary neglect” of the state.
In separate statements on Sunday, the CPI(M) and the Congress accused the Centre of discrimination, saying the Budget reflected a “vindictive approach” by the BJP-led Union government and raised serious concerns about federalism.
The CPI(M) state secretariat said the Budget ignored Kerala’s long-pending demands, despite repeated representations by the Chief Minister and the submission of a memorandum to the Union government ahead of the Budget.
The party said Kerala was excluded from the seven proposed high-speed rail corridors and 12 new waterways. It added that there was no mention of AIIMS, new railway lines such as Nilambur–Nanjangud and Thalassery–Mysuru, or support for rubber growers, paddy procurement and traditional sectors.
Leader of Opposition in the Assembly VD Satheesan said the Budget raised doubts about whether Kerala was being treated as an integral part of India.
The CPI(M) also criticised the Centre for denying ₹5,649 crore in dues and for not increasing Kerala’s share as recommended by the Finance Commission.
The party said the Centre had failed to address Kerala’s demand for a higher Finance Commission share and had discontinued the Revenue Deficit Grant. It warned that these decisions would seriously weaken the state’s economic base.
The party said it would strongly oppose the Centre’s mineral corridor proposal, warning that it would open Kerala’s resources to multinational corporations.
Accusing the Union government of adopting a “colonial-style” approach, the CPI(M) demanded that BJP leaders and union ministers from Kerala explain the omissions and urged all democratic forces to unite in protest against what it described as continued discrimination against the state.
It said the Budget was a “mockery” of Kerala, adding that the only reference to the state was through projects such as a turtle conservation centre.
Opposition Leader VD Satheesan accused the Centre of neglecting farmers, raised suspicion over plans to exploit Kerala’s mineral resources, and said both the Centre and the state government must answer to the people.
“When the Prime Minister and BJP leaders claimed Kerala is a developed state, is this how they plan to develop it?” he asked.
KPCC president Sunny Joseph MLA described the Budget as devoid of new projects, financial assistance or special consideration for Thiruvananthapuram, despite tall promises of making it a global city.
Congress Working Committee member Ramesh Chennithala said the Union Budget had deeply disappointed Kerala. He accused the BJP of misleading people with promises of AIIMS and high-speed rail, and said even the proposal to set up three Ayurveda institutes gave no assurance that one would be located in Kerala.
“Union Minister Suresh Gopi keeps claiming that AIIMS is under his control and can be granted at any time,” he said.
Chennithala questioned whether Kerala had any place in the Prime Minister’s vision of a developed India.
He said Kerala had been ignored in successive Budgets since 2014 and accused BJP leaders of making pre-election announcements that would not translate into real benefits.
He pointed out that Kerala was excluded even when high-speed rail was approved for seven states, and said repeated claims about AIIMS rang hollow after the Budget delivered nothing for the state.
