Thiruvananthapuram: The Kerala Assembly on Wednesday unanimously passed a resolution demanding that the Union government sanction an All India Institute of Medical Sciences (AIIMS) for the state, a long-pending demand that Kerala has been raising for over two decades.

Criticising the Centre for ignoring the state's demands, the resolution said that despite the state government identifying suitable land and completing most acquisition procedures, the Union government has failed to take any concrete steps to establish AIIMS in Kerala, including in the recent Union Budget. "The House unanimously demands that AIIMS be urgently sanctioned for Kerala," the resolution, moved by Chief Minister Pinarayi Vijayan, stated.

The resolution also sharply criticised cuts in allocations for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), now renamed VB-G RAM-G. While the scheme earlier enjoyed 100 per cent central funding, the revised framework requires states to bear 40 per cent of the implementation cost, imposing an additional financial burden on Kerala. The change alone is estimated to cause the state a loss of around ₹3,800 crore.

Further, the recent Union Budget reduced the allocation for the employment guarantee scheme from ₹88,000 crore to ₹30,000 crore. The ₹58,000-crore cut in the national outlay for a scheme that Kerala has been implementing effectively will have a severe impact on the state, the resolution said.

The House also flagged what it termed discriminatory treatment in the sanctioning of Viability Gap Funding (VGF) for the Vizhinjam Port project.  It was noted that despite repeated requests by Kerala to provide the VGF as a grant, the centre sanctioned it as a repayable amount, unlike in the case of other states. 

Earlier, both the Chief Minister and Opposition members had criticised the Union Budget for largely ignoring Kerala's developmental needs, with a rare earth minerals corridor and a sea turtle conservation project being the only major initiatives announced for the state. The long-standing demand for a high-speed rail corridor was also overlooked.

The resolution further noted that the 16th Finance Commission's decision to discontinue Revenue Deficit Grants would deal a serious blow to Kerala. As a result, the state stands to lose an amount equivalent to the ₹53,000 crore it received during the tenure of the 15th Finance Commission.

The House also criticised the Centre for withholding ₹965.16 crore due to Kerala under IGST and for failing to address the state's demand for compensation to offset revenue losses arising from reductions in GST rates, terming these moves part of an unfair approach towards states, including Kerala.

"The demands raised by Kerala are essential for the development of both Kerala and India as a whole. The Union's approach towards the state must be urgently corrected. Understanding this, this House demands that the Union Government accept Kerala's demands," the resolution said.