Published Feb 01, 2026 | 6:13 PM ⚊ Updated Feb 01, 2026 | 6:13 PM
Kerala Chief Minister Pinarayi Vijayan with Union Finance Minister Nirmala Sitharaman
Synopsis: Kerala CM Pinarayi Vijayan slammed the Union Budget 2026, accusing the Centre of neglecting the state and ignoring demands for AIIMS, Vizhinjam port support, and rail corridors. He criticised retention of 41% tax devolution, cuts in grants and subsidies, and alleged favouring corporates over people. Calling it anti-federal and anti-people, he urged strong protests against the Centre’s policies.
Kerala Chief Minister Pinarayi Vijayan on Sunday, 1 February, slammed the Union Budget presented by Finance Minister Nirmala Sitharaman, accusing the Centre of continued discrimination and neglect towards the state.
In a sharp response, the CM said that the Budget appeared to have “forgotten that Kerala is also on the map of India.”
Vijayan pointed out that the state’s long-pending demands, including the establishment of an AIIMS, high-speed railway corridors, and a special package for the Vizhinjam port project, were completely ignored.
He also criticised the Finance Commission’s decision to retain the states’ share of central taxes at 41 percent, calling it a move that undermines federal principles.
Union Ministers from Kerala, he said, must answer for this neglect.
Describing the Budget as rooted in “neoliberal economic logic,” the Vijayan alleged that it favours corporates while pushing ordinary people further into hardship.
He expressed concern over the Centre’s decision to discontinue revenue deficit grants and highlighted a steep overall cut in grants from ₹2.2 lakh crore in 2021 to ₹1.4 lakh crore now.
While the marginal increase in tax devolution was Kerala’s rightful share, he said denial of grants meant there was no real increase in total central assistance.
Vijayan also warned against what he termed an attempt by the Centre to hand over Kerala’s mineral resources to private monopolies, alleging dilution of environmental safeguards to speed up private mining.
He said this contradicted Kerala’s plan to develop a public sector mineral corridor linking Vizhinjam, Chavara, and Kochi.
The CM further criticised cuts in food, health, and fertiliser subsidies, large reductions in allocations for the employment guarantee scheme, and the lack of measures to ensure fair prices for farm produce.
He said key sectors such as tourism, education, industry, traditional sectors, IT, startups and the welfare of expatriates had been ignored.
Referring to global challenges like tariff hikes by the US, Vijayan said the Budget failed to address their impact on exports, inflation and unemployment.
Calling it a deliberate attempt to stall Kerala’s development, he urged strong protests against what he described as anti-people economic policies and the Centre’s neglect of the state.
(With inputs from Dileep V Kumar. Edited by Amit Vasudev)
