Kerala CM slams Union Budget, accuses Centre of neglecting state

Kerala Chief Minister Pinarayi Vijayan on Sunday strongly criticised the Union Budget, saying it exposes the Centres continued discrimination and neglect towards the state. It is not only failing to give Kerala its rightful share from the divisible pool of central funds, but the decision that revenue deficit grants need not continue is an attempt by the Centre to undermine the states financial foundation, he said.

Kerala Chief Minister Pinarayi Vijayan on Sunday strongly criticised the Union Budget, saying it exposes the Centre's continued discrimination and neglect towards the state. In a statement here, Vijayan said Finance Minister Nirmala Sitharaman had deliberately overlooked the fact that Kerala is also part of India's map. Reacting sharply to the budget presented in Parliament, he said long-standing demands of the state, including an AIIMS, seven high-speed railway corridors, and a special package for Vizhinjam port, were completely ignored. Vijayan also expressed disappointment over the Finance Commission allocation. ''The decision to reject the demand for an increase in the Finance Commission share and to maintain the current status of 41 per percent is a move that weakens federal principles,'' he said. Describing the budget as fully reflecting a neoliberal economic approach, the chief minister said it is designed to enrich corporations while pushing ordinary people further into poverty. ''It is not only failing to give Kerala its rightful share from the divisible pool of central funds, but the decision that revenue deficit grants need not continue is an attempt by the Centre to undermine the state's financial foundation,'' he said. He noted that overall grants have been sharply cut, from Rs 2.2 lakh crore in 2021 to Rs 1.4 lakh crore now. ''Considering the achievements Kerala has made in population control and domestic revenue growth, the small increase in tax devolution is merely what the state is rightfully entitled to. However, by denying grants, there is essentially no real increase in the total share from the Centre, which is a serious concern,'' Vijayan said. On the rare earth mineral corridor announced in the budget, he said the Centre's move to seize Kerala's mineral wealth is extremely dangerous. ''Moreover, the announcements in the Union Budget are policies that pave the way for private monopolies to carry out mining. By even bypassing the strict regulations of the ministry of environment and fast-tracking environmental clearances, the Centre is trying to facilitate private sector interests,'' he said. The Chief Minister added that the state had planned a public-sector mineral corridor connecting Vizhinjam, Chavara, and Kochi. ''The Centre's move to hand over mineral resources to private monopolies, contrary to the state's announcements, is harmful,'' he said. Vijayan also criticised both the previous Congress government and the current BJP government for misleading Kerala with promises, including the railway coach factory. He warned that rising prices and inflation, coupled with cuts in food, health, and fertiliser subsidies, will make life harder for ordinary people. ''The allocation for the employment guarantee scheme has been slashed by tens of thousands of crores, which will harm rural employment. The Centre has shown no willingness to ensure fair prices for agricultural products or to control imports that undermine Kerala's economy. ''By ignoring central public sector units such as FACT and the Kochi Refinery, the budget has also disappointed the tourism, education, and industrial sectors,'' Vijayan said. He pointed to global economic challenges, saying the sharp tariff increases imposed by the US administration under Donald Trump have already caused major economic shocks globally. ''This budget offers no measures to tackle such challenges or to protect the country's export sector. By failing to take steps to address inflation and unemployment, the budget appears to be a deliberate attempt to slow Kerala's development,'' he said. Vijayan added that from traditional industries to IT start ups, the budget ignores all, with no plans for the welfare or return of expatriates. ''Strong protests must rise against these anti-people economic policies and the Centre's continued neglect of Kerala,'' he said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)