Expectations ran high in Kerala ahead of the Union Budget 2026–27, with widespread belief that the Modi government would finally announce an AIIMS for the state. Those hopes were dashed when Finance Minister Nirmala Sitharaman’s budget speech made no such provision, deepening Kerala’s long-standing disappointment. Despite proposing multiple sites since the mid-2010s and receiving assurances over the years, the Centre has repeatedly deferred a decision, citing Kerala’s relatively strong healthcare system—a justification widely criticised within the state.
The delay has now become a major political flashpoint. The ruling LDF has accused the Union government of discrimination and neglect, while the Congress-led UDF has highlighted unfulfilled promises and procedural compliance by the state. Leaders across parties have questioned the Centre’s credibility, pointing to repeated assurances from BJP leaders.
With elections approaching, the BJP’s attempts to shift blame to the state government have failed to convince the public, leaving the party on the defensive amid growing resentment.