The Economic Survey report tabled in the parliament by the Union Finance Minister Nirmala Sitharaman on Thursday has praised Kerala for its poverty eradication model. BJP Kerala leadership had scoffed at the LDF government's Extreme Poverty Eradication programme, calling it a political stunt and an eyewash.

BJP Kerala president Rajeev Chandrasekhar had rubbished the mission as mere propaganda in a press conference held in October 2025. He had said that Narendra Modi government reduced extreme poverty in India from 16.2% to 2.3% in 10 years while Kerala had to spend ₹1000 crore and took 10 years to reduce extreme poverty level which was 1.24%. The Congress had also unleashed criticism against the programme.

The survey report cites examples of Bihar and Kerala under the chapter titled 'Lifting millions up: Progress on poverty and inequality'. It says that state governments have introduced innovative programmes to tackle poverty over the years. The report then cites the example of Bihar's ‘Satat Jeevikoparjan Yojana (SJY)’, a livelihoods scheme targeting ultra-poor women launched in 2018 and explains in detail how Kerala implemented the poverty eradication model.

"The Kerala government implemented a comprehensive method to identify the most vulnerable households through extensive community participation, led by local governments and supported by frontline workers, including ASHA (Accredited Social Health Activist), Anganwadi workers, Kudumbashree, and activist groups. Essential documents such as Aadhar, ration cards, Unique Disability ID (UDID) cards for the differently-abled, and electoral IDs, along with emergency services like health insurance and social security pensions, were provided to families. The programme prioritised ensuring basic food and medical care. Individualised micro-plans were created for each family, with regular digital tracking and monitoring service delivery by local self-governments and departments," the Economic survey report notes.

It says that both SJY and the Kerala model showcase the involvement of the community and a multipronged strategy with continuous support and monitoring to ‘push’ the vulnerable out of the vicious cycle through handholding support, training, access to finance, and basic necessities. These state-level innovations reflect broader national priorities, where targeted social investment is being scaled up to support inclusive growth, the report said.

LSG Minister M B Rajesh told Onmanorama that the survey report is a fitting reply to those who have mocked the Kerala model. "This is another example of Kerala model earning acclaim. Only those with blind political affiliations could have derided this project. We are not surprised over the centre's praise. The model was accepted globally. It is a shining example of why one should see facts and not go by politics alone," said Rajesh.

Onmanorama reached out to Rajeev Chandrasekhar for a comment. He said that he hasn't read the report and will respond once he went through it. Onmanorama also sought comments from other BJP state leaders M T Ramesh and K S Radhakrishnan but they were unavailable for responses.

Kerala was declared Extreme poverty free on November 1, 2025. 64,006 extremely poor families were identified through a comprehensive poverty identification process and individual micro plans were rolled out for each family. The state has launched phase 2 of the programme, and funds have been allocated in the state budget 2026-27, presented on Thursday.