Union Budget 2026: Nirmala Sitharaman Deliberately Forgot Fact That Kerala Is Also on India’s Map, Says Chief Minister

Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan said the Union Budget presented today clearly exposes the Centre’s continued discrimination and neglect towards Kerala. He alleged that Union Finance Minister Nirmala Sitharaman has deliberately ignored the fact that Kerala is also part of India’s map. Long-pending demands of the state—including an AIIMS, seven semi-high-speed railway corridors for railway development, and a special package for the Vizhinjam port project—have been completely ignored.

The decision to reject Kerala’s demand for an increased Finance Commission share and to continue with the existing 41 per cent devolution, the Chief Minister said, weakens federal principles. He added that Union Ministers from Kerala must answer for this neglect.

The Chief Minister described the budget as a policy document that fully embraces neoliberal economic logic, aimed at enriching corporates while pushing ordinary people deeper into poverty. Not only has Kerala been denied its rightful share from the divisible pool, but the Centre’s decision to discontinue revenue deficit grants is an attempt to undermine the state’s financial foundation. Overall, there has been a massive cut in grants—from 2.2 lakh crore rupees in 2021 to 1.4 lakh crore rupees now.

He noted that the marginal increase in Kerala’s tax share, based on the state’s achievements in population control and domestic revenue growth, is merely its legitimate entitlement. However, the denial of grants means there is no real increase in the state’s total share from the Centre, which he termed a serious concern.

The Chief Minister warned that the Centre’s move to appropriate Kerala’s mineral resources is extremely dangerous. Provisions in the Union Budget, he said, pave the way for private monopolies to undertake mining. By diluting even the strict norms of the Environment Ministry and fast-tracking environmental clearances, the Centre is favouring the private sector. While the state government had announced in its budget the establishment of a public-sector mineral corridor linking Vizhinjam, Chavara, and Kochi, the Centre’s move to hand over mineral resources to private players runs counter to Kerala’s interests and is alarming. He added that repeated promises—such as a railway coach factory—by both Congress and BJP governments have once again proved to be deceptive.

At a time when inflation and price rise continue unabated, cuts in food, health, and fertiliser subsidies will further impoverish people, the Chief Minister said. The allocation for the employment guarantee scheme has been slashed by tens of thousands of crores, which will severely affect rural employment. The Centre has failed to ensure fair prices for agricultural produce or regulate imports that adversely impact Kerala. By neglecting central public sector units such as FACT and Cochin Refineries, the budget has also disappointed the tourism, education, and industrial sectors.

He further pointed out that steep tariff hikes imposed by the US administration under Donald Trump are triggering serious global economic repercussions. The Union Budget, he said, offers no measures to address the challenges arising from such tariff wars or to protect India’s export sector. By failing to propose steps to tackle inflation and unemployment, the budget represents a deliberate attempt to obstruct Kerala’s development trajectory. From traditional industries to IT and startups, the budget ignores key sectors and offers no schemes for expatriate rehabilitation or welfare.

The Chief Minister concluded by calling for strong protests against these anti-people economic policies and against the Centre’s continued neglect of Kerala.