Kerala FM Calls Union Budget 'Disappointing', Accuses Centre of Discrimination

Thiruvananthapuram, Feb 1 (PTI) Kerala Finance Minister K N Balagopal on Saturday expressed strong displeasure and disappointment with the Union Budget for 2025-26, presented by Nirmala Sitharaman, and accused the Centre of showing "political discrimination" towards states in the allocations.


He said Kerala had justified expectations in some areas, but they were completely neglected in the budget.

It was "utterly sad and condemnable" that the Union Budget made no mention of the Wayanad landslide tragedy, which had shocked the country months ago, or the Vizhinjam port, Balagopal told reporters here.

The Union Finance Minister made many announcements with an eye on the upcoming elections in Bihar and New Delhi, he said.

But at the same time, there was no package or even a reference to the landslide tragedy in Wayanad, no mention of Vizhinjam Port, and no general financial allocations to the state, he said.

Balagopal pointed out that Sitharaman, in her budget, spoke at length about exports but ignored the Vizhinjam port in Kerala, which has been the most significant export promotion scheme in the country in the last two decades.

A big port is a gateway for exports, but no allocation has been made for it, he said, adding that no significant institutions have been allotted to the state in the budget.

"It is utterly sad and condemnable...We hope they will correct this," the state FM said.

Further criticising the Union Budget, Balagopal said it has "failed" to ensure equal treatment for all states in the country, without any discrimination.

It generally seems that they (the centre) would do more for the states where they have political interests and neglect the other states, he alleged.

The minister said that although there is a general increase in the allocations towards states in the budget, Kerala is unlikely to get the deserved amount in accordance with its population density.

As per the budget, there is an increase of Rs 5 lakh crore in the allocations to states.

In accordance with its population density, Kerala should receive Rs 14,288 crore, but as per the budget figures, it is doubtful whether the state will even receive Rs 3,000 crore, the minister pointed out.

He also criticised the inadequate allocations in the agricultural sector and for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

There was also no mention of special schemes to attract investments to the country, he said, adding that the zero income tax up to Rs 12 lakh announcement would not be as beneficial to the people as its hype suggests.