Minister Balagopal slams Union Budget, says Centre’s move will hamper growth
He alleged that allocations for crucial sectors such as agriculture and health had not been increased.
He alleged that allocations for crucial sectors such as agriculture and health had not been increased.
He alleged that allocations for crucial sectors such as agriculture and health had not been increased.
Thiruvananthapuram: Kerala Finance Minister KN Balagopal on Thursday criticised the Union Budget 2026, accusing the Centre of denying key development projects to the state and continuing what he described as discriminatory treatment towards Kerala.
Terming the Budget “anti-Kerala” in nature, Balagopal said the state had been left with nothing, despite repeatedly raising its demands with the Centre. He expressed strong displeasure over the Union government’s failure to approve Kerala’s requests for an All India Institute of Medical Sciences (AIIMS) and a high-speed rail project.
“I am deeply disappointed that there is nothing in the Union Budget to strengthen Kerala’s economy. The stagnation in the national economy is affecting all states,” the minister said.
He alleged that allocations for crucial sectors such as agriculture and health had not been increased. Citing the Jal Jeevan Mission, Balagopal said ₹67,000 crore was allocated for the scheme last year, but only ₹17,000 crore was spent.
“This amounts to a massive lapse. The state had to raise ₹5,000 crore to settle payments to contractors under the Jal Jeevan Mission,” he said.
The finance minister also criticised the Centre for denying Kerala an industrial corridor despite the commissioning of the Vizhinjam port.
“US President Donald Trump’s tariff war will affect industries in Kerala, but the Centre has not taken any steps to address the issue. Instead, expenditure has been cut in the Budget, which will hamper economic growth and adversely impact all sectors across the country,” he said.
Balagopal added that the Centre had remained silent on Kerala’s long-pending demands for AIIMS and the Sabari Rail project.
Clarifying the reference to a rare earth corridor in the Union Budget, he said it was different from the project announced by the state government. “Kerala’s proposal is to establish a mineral-based industry within the state. We never intended to transport raw minerals to other regions,” he said.