Kerala Chief Minister Pinarayi Vijayan Launches Scathing Attack on Union Budget 2026
In a strongly worded statement issued from Thiruvananthapuram and Kochi, Kerala Chief Minister Pinarayi Vijayan has vehemently criticised the Union Budget 2026-27, alleging that it reflects the Centre's continued discrimination and systematic neglect of the southern state. The veteran leader asserted that the budgetary document virtually ignored Kerala's long-pending developmental demands while actively weakening the country's cherished federal structure.
Key State Demands Completely Overlooked
Vijayan pointed out that several of Kerala's crucial infrastructure and healthcare proposals found no mention whatsoever in the extensive budget speech and documents. These significant omissions include:
- The establishment of a full-fledged All India Institute of Medical Sciences (AIIMS) in the state
- A dedicated high-speed rail corridor connecting major economic centers
- A special financial package for the strategically important Vizhinjam international seaport project
The Chief Minister expressed particular disappointment at the Union government's decision to retain the finance commission's devolution share at 41%, rejecting Kerala's legitimate demands for an increase. He described this move as a direct undermining of cooperative federalism and called upon Union ministers representing Kerala constituencies to publicly respond to what he termed the Centre's deliberate neglect.
Neoliberal Approach and Financial Weakening
Vijayan alleged that the budget followed a distinct neoliberal economic approach that disproportionately favors corporate interests while adversely affecting ordinary citizens. He highlighted several concerning financial indicators:
- Discontinuation of revenue deficit grants to states
- A sharp decline in overall grants to states from approximately Rs 2.2 lakh crore in 2021 to just Rs 1.4 lakh crore in the current budget
- Only a marginal increase in tax devolution share that merely reflects Kerala's achievements in population control and income growth
"This budgetary approach severely weakens the state's financial position and autonomy," Vijayan warned, noting that the minimal tax share increase does not compensate for the substantial loss in grants.
Alarming Changes in Mineral Policies
The Kerala Chief Minister raised serious concerns over proposed changes in national mineral policies, warning that the Centre appears to be paving the way for private monopolies in the mining sector by easing environmental clearances. This development directly contradicts Kerala's ambitious plan to develop a public sector mineral corridor linking Vizhinjam, Chavara, and Kochi.
Vijayan further criticised significant cuts in allocations for essential social welfare schemes including:
- Food security programs
- Public health initiatives
- Employment guarantee schemes
He warned that these reductions would have severe consequences for rural employment opportunities and vulnerable population sections across Kerala.
Industries Minister Echoes Disappointment
Kerala's Industries Minister P. Rajeeve separately termed the Union Budget as "deeply disappointing" during interactions with reporters in Kochi. He confirmed that the Centre did not consider any of Kerala's substantive demands, particularly highlighting the exclusion of Kerala from seven proposed high-speed rail routes connecting major economic hubs nationwide.
"The state government had formally approached the Union government seeking approval for initiating high-speed rail projects, but this was denied," Rajeeve revealed. "Similarly, our legitimate demand for an equitable share from national tax collections was completely ignored."
Regarding the budget's mention of a dedicated rare earth mineral corridor for Kerala, the Industries Minister expressed skepticism. "We have already announced a similar state-level project," he noted. "There are concerning amendments that weaken state powers while authorizing the Centre to auction mineral mining rights. We must carefully examine whether this move aims to extract and transport Kerala's mineral resources to other regions."
Rajeeve added that the Kerala government has proactively recognized the value of the state's mineral wealth and declared a comprehensive project for value addition within Kerala itself, ensuring that economic benefits remain within the state.
