Thiruvanthapuram (Kerala) [India], February 1 : Kerala Chief Minister Pinarayi Vijayan on Sunday expressed strong disapproval of the Union Budget 2026-27, stating that it reflects continued neglect and discrimination against the state.
"The Union Budget presented today clearly exposes the Centre's persistent disregard for Kerala. Key demands long raised by the state -- including AIIMS, seven high-speed rail corridors, and a special package for the development of Vizhinjam Port -- have all been completely ignored. The refusal to increase the Finance Commission's devolution share and the continuation of the existing 41% allocation undermine federal principles. Union Ministers from Kerala must answer for this neglect," Vijayan said.
The Chief Minister added that the budget, driven entirely by neo-liberal economic logic, aims to enrich corporates while pushing ordinary people into deeper poverty.
He highlighted that the discontinuation of revenue deficit grants threatens the state's financial stability. According to Vijayan, Kerala's total grants have seen a steep reduction -- from ₹2.2 lakh crore in 2021 to ₹1.4 lakh crore in the current budget.
"This budget, driven entirely by neo-liberal economic logic, is a policy document designed to enrich corporates while pushing ordinary people into deeper poverty. Not only is Kerala being denied its rightful share from the divisible pool, but the decision to discontinue revenue deficit grants is an attempt to undermine the state's financial stability. Overall, there has been a major cut in grants."
He further added, "While the total grant was ₹2.2 lakh crore in 2021, it has now been reduced to ₹1.4 lakh crore. The slight increase in tax devolution for Kerala is only what the state rightfully deserves, considering its achievements in population control and domestic revenue growth. However, the denial of grants means there is no actual increase in the total central share Kerala receives -- a matter of serious concern."
Vijayan criticised the Union Budget 2026-27, warning that certain provisions threaten the state's economic and environmental interests. He added that the budget further demonstrates how both the Congress and BJP governments have repeatedly misled Kerala with false promises, including on the Railway Coach Factory.
"The Centre's move to seize Kerala's mineral resources is extremely dangerous. The budget announcement indicates a policy that opens the way for private corporate mining. By scrapping even the strict norms of the Ministry of Environment, the Centre is fast-tracking environmental clearances to benefit private entities. The Kerala government had announced in the state budget that a mineral corridor linking Vizhinjam, Chavara, and Kochi would be established in the public sector. The Centre's move to hand over mineral resources to private corporations runs counter to the state's policy and is harmful. This budget further proves how both the Congress and the BJP governments have deceived Kerala with false promises, including on the Railway Coach Factory," he said.
Vijayan also raised concerns over cuts in welfare allocations, stating, "Despite rising inflation and severe price hikes, the reductions in food, healthcare, and fertilizer subsidies will push people into further hardship. Tens of thousands of crores have been slashed from the allocation for the employment guarantee scheme, which will devastate rural livelihoods. The Centre has refused to ensure fair prices for agricultural products or regulate imports that harm Kerala's economy. Ignoring key central PSUs like FACT and Kochi Refinery, the budget has also disappointed the tourism, education, and industrial sectors."
CM highlighted that the budget does not address global economic challenges, such as tariff increases by the US, nor does it provide measures to curb inflation or unemployment. Traditional industries, IT, and startups were ignored, and no schemes were included for the welfare or rehabilitation of non-resident Keralites (NRKs), according to the release.
Overall, Vijayan described the budget as anti-people and called for public awareness and protest against the Centre's policies and continued neglect of Kerala.