Union Budget 2026: Kerala finds barely a mention; leaders across spectrum, except BJP, flay neglect

With Kerala getting barely a mention in the Union Budget 2026-27, political leaders from across the spectrum lashed out at the National Democratic Alliance (NDA) government for ignoring almost all the long-standing demands of the State.

While Chief Minister Pinarayi Vijayan called the Budget a deliberate attempt to hinder Kerala’s development, Leader of the Opposition V.D. Satheesan said that the Budget makes one wonder whether Kerala is part of India.

The Bharatiya Janata Party (BJP) was the sole defender of the Budget, with its State president Rajeev Chandrasekhar saying that the State government had failed to implement Central allocations from previous Budgets. “Only the NDA’s double engine government can get things implemented here (Kerala). How can a government which cannot build houses build a high-speed railway?” asked Mr. Chandrasekhar.

Mr. Vijayan said that the Budget reveals the Centre’s severe discrimination and neglect towards the State. Union Finance Minister Nirmala Sitharaman has deliberately forgotten the fact that Kerala is also located on the map of India. The State’s long-standing demands for an AIIMS, high-speed corridor and a special package for Vizhinjam port development have all been completely ignored. The Finance Commission’s rejection of the demand for an increase in devolution to the States and its decision to continue the status quo of 41% share is a move that weakens federal principles. Union Ministers from Kerala need to answer for the Centre’s neglect towards the State, he said.

‘To benefit corporates’

“This year’s Budget, which is completely based on neoliberal economic logic, is a policy document meant to benefit corporates and push the common people further into poverty. Not only is Kerala not getting what it deserves from the Central share, the Union government is also trying to destroy the State’s economic base by deciding not to continue revenue deficit grants. Overall, there has been a huge cut in the amount of grants. The grant, which was ₹2.2 lakh crore in 2021, has now come down to ₹1.4 lakh crore. The small increase in tax share is only the right of the State, considering the achievements made by Kerala in population control and domestic revenue growth,” he said.

Commenting on the Budget proposal of a rare earth corridor, he said that the Union government’s move to seize Kerala’s mineral wealth is extremely dangerous. “The announcement in the Union Budget will pave the way for private monopolies to mine rare earths. The Central move is to help the private sector by speeding up the issuance of environmental clearances by repealing even the strict conditions of the Ministry of Environment. The State government had announced in the Budget that a rare earth corridor will be established in the public sector connecting Vizhinjam, Chavara and Kochi. The Central move to hand over mineral wealth to private monopolies in complete contradiction to the State’s announcements is dangerous,” said Mr. Vijayan.

‘A warning’

Mr. Satheesan said that it is unfortunate that the Budget did not have any announcement for Kerala, despite BJP leaders repeatedly talking about AIIMS and high-speed rail line. “The BJP’s campaign pitch during the local body elections was around the slogan of ‘Vikasita Keralam’. If this is how they are developing Kerala, this is a warning. The Turtle Trail was included in the Budget to show that Kerala exists. The Union government is trying to give the mineral wealth of Kerala to corporates. A decision in this regard should be taken only after consulting the State. The Budget announcement related to this can only be viewed with suspicion,” he said.