CM Pinarayi Vijayan flags continued neglect of Kerala, slams Union Budget

Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Sunday launched a sharp attack on the Union Budget, alleging that it once again reflects the Centre’s discriminatory approach and continued neglect of the state.

In a statement issued, Vijayan said Finance Minister Nirmala Sitharaman had chosen to ignore the fact that Kerala is an integral part of the country. Responding to the Budget presented in Parliament, he said several long-pending demands of the state — including the establishment of an AIIMS, seven semi high-speed railway corridors, and a special financial package for the Vizhinjam port — had been left out.

The Chief Minister also criticised the Finance Commission’s allocation. “The decision to reject the demand for an increase in the Finance Commission share and to maintain the current status of 41 per percent is a move that weakens federal principles,” he said. Terming the Budget a clear reflection of a neoliberal economic framework, Vijayan alleged that it prioritises corporate interests while worsening the condition of ordinary citizens.

“It is not only failing to give Kerala its rightful share from the divisible pool of central funds, but the decision that revenue deficit grants need not continue is an attempt by the Centre to undermine the state's financial foundation,” he said.

He pointed out that total grants had seen a steep reduction, falling from ₹2.2 lakh crore in 2021 to ₹1.4 lakh crore at present. “Considering the achievements Kerala has made in population control and domestic revenue growth, the small increase in tax devolution is merely what the state is rightfully entitled to. However, by denying grants, there is essentially no real increase in the total share from the Centre, which is a serious concern,” Vijayan said.

Commenting on the rare earth mineral corridor announced in the Budget, he warned that the Centre’s attempt to take control of Kerala’s mineral resources posed serious risks. “Moreover, the announcements in the Union Budget are policies that pave the way for private monopolies to carry out mining. By even bypassing the strict regulations of the ministry of environment and fast-tracking environmental clearances, the Centre is trying to facilitate private sector interests,” he said.

The Chief Minister said the state government had already proposed a public-sector mineral corridor linking Vizhinjam, Chavara and Kochi. “The Centre's move to hand over mineral resources to private monopolies, contrary to the state's announcements, is harmful,” he said.

Vijayan also accused both the former Congress-led government and the present BJP-led administration of misleading Kerala with repeated assurances, including the promise of a railway coach factory. He cautioned that rising prices and inflation, along with cuts in food, health and fertiliser subsidies, would place additional burdens on the common people.

“The allocation for the employment guarantee scheme has been slashed by tens of thousands of crores, which will harm rural employment. The Centre has shown no willingness to ensure fair prices for agricultural products or to control imports that undermine Kerala's economy. “By ignoring central public sector units such as FACT and the Kochi Refinery, the budget has also disappointed the tourism, education, and industrial sectors,” Vijayan said.

Referring to global economic pressures, he said sharp tariff hikes imposed by the US administration under Donald Trump had already triggered significant economic disruptions worldwide. “This budget offers no measures to tackle such challenges or to protect the country's export sector. By failing to take steps to address inflation and unemployment, the budget appears to be a deliberate attempt to slow Kerala's development,” he said.

The Chief Minister added that the Budget had ignored all sectors — from traditional industries to IT start-ups — and lacked any provisions for expatriate welfare or their return. “Strong protests must rise against these anti-people economic policies and the Centre's continued neglect of Kerala,” he said.