The Opposition LDF on Wednesday boycotted Assembly proceedings in protest against the government's move to pass the Finance Bill, 2026, which included the new rates for low-alcohol liquor, without referring it to an Assembly Subject Committee. 

It was former finance minister K N Balagopal who first raised a procedural issue. "It is improper to table a Finance Bill without taking it through the Subject Committee," Balagopal said. "This has no precedent," he added. 

Subject committees are made up of MLAs and are empowered to scrutinise the demands for grants, to examine legislation before it is tabled in the Assembly, to study and report on a specified area of governmental activity in the wider public interest, or a project, scheme or undertaking intended for the general welfare, and also to advise the Government on a question of policy or legislation.

Further, Balagopal said that "excessive delegation" would result if the Bill was passed. He was referring to a clause in the Bill that said that the new tax rates for low-alcohol liquor would come into force "on such date as the Government may, by notification in the official Gazette, appoint." 

Balagopal said that this clause would bestow excessive powers on the executive, rendering the legislature powerless. 

Chief Minister V D Satheesan, however, countered the charge, saying that the Assembly Business Advisory Committee (BAC) had allowed the Finance Bill to skip the Subject Committee. "Not a single Opposition member, including its leaders, had objected to this at the BAC meeting," the CM said.

The BAC, chaired by the Speaker, is the Assembly committee that recommends the time that should be allocated for the discussion of Bills and other Government Bills.

What's more, the CM said that the LDF government had secured a waiver on February 24 to table the Finance Bill without passing it through the Subject Committee. Speaker Thiruvanchoor Radhakrishnan rejected Balagopal's objection and allowed the Finance Bill to be tabled.

Opposition Leader Pinarayi Vijayan, however, admitted that the LDF had agreed to table the Finance Bill, bypassing the Subject Committee at the BAC. "But at that point we had no idea that a dangerous clause would be smuggled into the Bill in such a fashion," Pinarayi said, alluding to the two tax slabs of 120% and 175% for low-alcohol liquor that have found a place in the Finance Bill. "They have now reduced the tax of liquor by 130 per cent," he said. Earlier, Balagopal had said that the LDF government had refrained from fixing a tax rate for low-alcohol brands because it would have hurt the youth. 

The Opposition Leader then said that the LDF could not cooperate with the legislation process and boycotted the rest of the day's proceedings.

Later, while replying to the discussion on the Finance Bill, the CM said that the Opposition Leader had hoodwinked the House. "While making his walk out speech, the Opposition Leader said that he had no idea that the liquor rates would be smuggled in when the BAC allowed the Bill to skip the Subject Committee," Satheesan said.

"But the Budget was presented on June 19 and the BAC was held on June 23. Were we ruled for 10 years by a Chief Minister who had no idea that Budget proposals would find a place in the Finance Bill?" the CM said. The LDF had by then boycotted the House and so there was no way the CM's remark could elicit a counter.