Despite the harsh summer that has plagued the state, no dedicated relief package was announced for Kerala.
Published Jul 24, 2024 | 7:00 AM ⚊ Updated Jul 24, 2024 | 7:00 AM
Nirmala Sitharaman (Screengrab)
There is nothing to cheer about for the people of Kerala in Union Budget 2024, presented by Finance Minister Nirmala Sitaraman in Parliament on Tuesday, 23 July. No major announcements or financial packages, no relief for the agrarian sector which suffered huge losses in the sweltering heat of this summer – nothing. The state was not even mentioned in the Budget speech.
The long-cherished dream of an AIIMS in Kerala remains a mirage. Suresh Gopi, Kerala’s first elected BJP MP ever, had said while still a member of the Rajya Sabha about two months ago that the AIIMS in Kerala would soon become a reality and that the Union Health Minister had offered an assurance. He had mentioned that an announcement would likely be made in the next Union Budget.
The Budget presented on Tuesday underlined the fact that an electoral victory for the BJP in Kerala would not necessarily usher in any change in budget allocation for the state. Political representation, clearly, need not necessarily translate into financial support.
Kerala Chief Minister Pinarayi Vijayan, after a first glance at the Union Budget, said it is discriminatory, between states. The Union finance minister’s announcement of eight national priorities ignores Kerala and most other states where the BJP and its allies are not in power, he said, explaining that he was not opposed to development projects for other states.
He criticised the neglect of Kerala’s long-standing demands and vowed to take these up with the Centre after studying the Budget more closely.
Vijayan pointed out that Kerala’s needs – the establishment of AIIMS, provision for better disaster management, and tourism facilities — were ignored.
Vijayan condemned the reduction in allocation for key schemes like the Pradhan Mantri Garib Kalyan Anna Yojana, Pradhan Mantri Poshan Abhiyan, and Mahatma Gandhi National Rural Employment Guarantee Scheme. The Union government, Vijayan said, was apathetic to schemes that affect ordinary people. He called upon the Opposition in the state to stand with him in protesting this discriminatory approach by the Centre.
K Sudhakaran, Kannur MP and KPCC president, said the Union Budget presented by Finance Minister Nirmala Sitharaman was politically motivated, aimed at protecting the narrow interests of the NDA.
“The budget is against the federal principles. The Modi government’s approach to non-BJP ruled states is reflected in this budget. There are no popular schemes, except for states led by parties in the NDA alliance. The secular political parties in the country should jointly protest this discrimination,” said Sudhakaran.
Sudhakaran noted that financial assistance was showered on Bihar and Andhra Pradesh, and no provision was made for Kerala. “A joint struggle against Kerala’s neglect is necessary. Kerala was also ignored in flood relief schemes. AIIMS remains a dream. Despite having two central ministers from Kerala, the state does not get any consideration. Kerala has been neglected in every budget since Modi came to power. It has happened again this time,” Sudhakaran said.
Leader of the Opposition in the state assembly V D Satheesan said the Modi government has turned the Union Budget into an exercise to maintain power and resolve crises within the ruling dispensation.
“This budget has only narrow political interests, not national policies. The Union Finance Minister did not even mention Kerala, even as she lavished attention on Bihar and Andhra Pradesh. The budget was prepared with the sole focus on the survival of the Union government,” said Satheesan, explaining that the BJP’s claim ahead of Lok Sabha polls that an MP for the party from the state would see the flow of financial provisioning by the Centre to the state has been exposed as another lie.
“Kerala has been completely ignored. In agriculture, industry, coastal areas, or disaster relief, there is nothing the Union Budget offers to the state. The promise of an AIIMS in Kerala, made in the course of the Lok Sabha poll campaign, has not been kept. Not increasing the allocation for the National Rural Employment Guarantee Scheme is another blow to Kerala,” Satheesan said.
Senior Congress leader Ramesh Chennithala said this Union Budget should ideally have been presented in the Bihar or Andhra Pradesh State Legislative Assemblies.
BJP state president K Surendran made a valiant effort to save his party’s image in the state, claiming that the Union Budget 2024 was a step towards a developed India. The Budget would help eliminate unemployment and create job opportunities, he asserted, without explaining how that would come about, except to state that 41 million job opportunities were planned; an additional month’s salary would be granted to all new entrants into the job market.
Surendran asserted that the Union Finance Minister had been able to protect the interests of weaker sections such as women, Scheduled Castes, and Scheduled Tribes. He did not explain how; meanwhile, the All India Democratic Women’s Association pointed out in a statement on the Union Budget that “the government is in complete denial of the social reality faced by women”.
Annual food inflation was at a high 9.5 percent but the government has not considered food and fuel prices in its calculation of the core inflation rate; the Central government’s expenditure as a percentage of GDP has declined, showing the withdrawal of the Centre from public provisioning.
BJP state president Surendran criticised Kerala Finance Minister KN Balagopal for commenting that the budget is against Kerala, claiming that the minister had reacted without seeing the budget document.
“It is customary to announce projects like AIIMS after the budget. There is no doubt that AIIMS will come to Kerala. The criticism raised by the Kerala Finance Minister is with prejudice. What Kerala gets from each central project will be clear soon,” said Surendran.
According to former Union Minister and BJP leader V Muraleedharan, the Union Budget will benefit Kerala which is facing severe unemployment. He also questioned whether the Kerala government had prioritised and presented projects to the Union government; Andhra Pradesh and Bihar, which have received significant allocations, have been in conversation with the Union government for support for local projects.
Meanwhile, another former Union Minister and BJP leader Rajeev Chandrasekhar dismissed the criticism from the Opposition as baseless, emphasizing that the Modi government prioritises the welfare and comprehensive development of all citizens; it does not work by pleasing individual chief ministers, he said, adding that states that possess a clear vision and manage their finances well will experience growth in industry and employment. “Blaming the Union government is unnecessary,” he said.
KS Krishna, president of All India Bank Employees’ Association, said the Union Budget does not comprehensively address serious issues faced by the people. The cost of living is rising and standard of living is deteriorating; joblessness is pervasive, affecting even the middle classes, besides the poor. Food and fuel prices have surged, and economic inequality is rising to levels that threaten social cohesion and order, he said.
“The creation of jobs for millions of job-seeking youths through public investment by the Union Government is the need of the hour. A few incentive schemes for prospective private employers by way of relief in provident fund remittances is a cruel joke,” he said.
SS Manoj, president of the Kerala Vyapari Vyavasayi Ekopana Samithi and national secretary of the Confederation of All India Traders (CAIT), said the small business sector did not receive any direct benefits. “The only notable aspect is the increase in the Mudra loan from ₹10 lakh to ₹20 lakh. Although the budget allocation for other sectors has increased purchasing power, there are no measures to reflect this in the retail business sector’s market. Despite the significant increase in GST, the retail trade sector, which played a major role in it, was not provided with relief,” he said.
Despite the harsh summer that has plagued the state, causing widespread agricultural distress and water scarcity, no dedicated relief package was announced. This oversight has left farmers and local communities in a precarious situation, grappling with climate change without government support, even as losses mount with unforeseen events like bird flu.
If the Budget is an exercise in political survival for the NDA, what remains is only to watch whether it succeeds in that aim.
(Edited by Rosamma Thomas)
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