"Absolutely no justification for withholding funds": Pinarayi Vijayan on Keralam Govt's decision to reduce local body funds

Jul 30, 2026

Thiruvananthapuram (Keralam) [India], July 30 : Keralam Leader of Opposition and former chief minister Pinarayi Vijayan on Thursday criticised the Congress-led UDF government over its decision to reduce funds allocated to local self-government institutions, saying there was "absolutely no justification" for withholding the funds.
Vijayan was speaking after leading the LDF march to the Secretariat, organised in protest against the government's decision to reduce funds allocated to local self-government institutions.
"It is the elected representatives of local self-government institutions themselves who have been forced to protest in front of the Secretariat, saying they are unable to carry out their responsibilities. Chief Minister VD Satheesan is making claims that are contrary to the facts. Even after four months in office, the government has not released even the first instalment of funds due to local bodies," he said.
The LDF march was organised to protest against the Keralam government's decision to reduce funds allocated to local self-government institutions. The previous LDF government's final Budget allocated ₹11,189 crore for local bodies, but the UDF government's revised Budget reduced the allocation to ₹8,655.45 crore.
Slamming the Chief Minister Satheesan, the Leader of Opposition (LoP) asserted that essential services such as palliative care and dialysis are being disrupted.
"As a result, essential services such as palliative care and dialysis are being disrupted. The government has borrowed Rs 17,800 crore to meet expenditure over the past four months. Yet, it is still unwilling to release the funds earmarked for local self-government institutions. There is absolutely no justification for withholding funds," Vijayan said.
Vijayan further added that neither the Chief Minister nor the concerned minister could offer any valid explanation in the state Assembly.
"Neither the Chief Minister nor the concerned minister could offer any valid explanation in the Assembly. This is not an LDF issue; it is an issue affecting the people of Kerala," Vijayan added.
The government reduced plan fund allocations citing fiscal constraints and a reduction in the state's share of central taxes. The move triggered political tensions, walkouts in the Assembly and protests across the state.


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