If Kerala wants more funds, let it say it is backward: Union Minister George Kurian

Union Minister's comments spark criticism from state leaders, with CPI(M) accusing Centre of wanting Kerala to regress
George Kurian
George Kurian(Photo | Express)
Updated on
5 min read

THIRUVANANTHAPURAM/NEW DELHI: Union Minister George Kurian said that if Kerala wants more funds from the Centre, the state should declare that it is backward in terms of education, infrastructure, and social welfare.

The remark from Kurian, while speaking to reporters in the national capital, came in the wake of intense criticism of the union budget 2025-26 from the ruling CPI(M) and the opposition Congress in Kerala, which on Saturday accused the central government of "neglecting" all of the state's demands.

Chief Minister Pinarayi Vijayan, state Finance Minister K N Balagopal, and Leader of Opposition in the state assembly V D Satheesan said that several of the state's demands, including a special financial package of Rs 24,000 crore and another package for the rehabilitation of Wayanad, were "ignored" in the budget.

They termed the budget "condemnable", "extremely disappointing" and "unfortunate".

George Kurian
Union budget fails to real issues like unemployment, inflation, disparities: Left

Following their remarks, Kurian, the Union Minister of State for Fisheries, Animal Husbandry and Dairying, and Minority Affairs, said that the Centre allocates such financial packages to states that are backward on various indices.

"You announce that Kerala is backward, that it does not have roads, good education, etc. If you say that Kerala is behind other states in terms of education, infrastructure, and social welfare, then the (Finance) Commission will examine it and give a report to the central government. The central government will take a decision based on the report. It does not decide on its own," he said.

Irked by his remarks, CPI(M) state secretary M V Govindan hit back, saying that the Centre wants Kerala to be backward, "but that will not happen".

He said that the central government is supposed to help Kerala develop further, "instead of asking it to go backwards".

"So, George Kurian's help is for Kerala to go backwards," he contended while speaking at an event in the state capital.

George Kurian
Budget decoded | How Rs 12 lakh can turn tax free; new tax slabs

Kerala Finance Minister K N Balagopal expressed strong disappointment with the 2025-26 Union Budget, accusing the Centre of "political discrimination" in its allocations. He said the state’s expectations had been ignored, particularly in light of the Wayanad landslide tragedy and the Vizhinjam port, which were not mentioned in the budget.

Balagopal criticized the budget for lacking support for Kerala's infrastructure, exports, and social welfare programs, noting that key issues like the Wayanad disaster and the Vizhinjam port were overlooked. He pointed out that despite being a significant export hub, Vizhinjam port received no allocation, and no new institutions were assigned to the state.

He also expressed concern over the perceived imbalance in the distribution of resources, suggesting that Kerala would not receive its fair share in proportion to its population density. Balagopal said the budget allocations were insufficient, with Kerala potentially receiving just a fraction of what it should based on its population.

Further, he criticized the budget for failing to support agriculture, MGNREGA, and for lacking measures to attract investment. He also questioned the effectiveness of the zero-income tax scheme for those earning up to Rs 12 lakh, calling it less beneficial than its portrayal.

Business community in Kerala hails Union Budget

The Union Budget proposals presented by Finance Minister Nirmala Sitharaman on Saturday received a positive response from the business community in Kerala.

Yusuff Ali M A, Chairman of Lulu Group said the budget marks a pivotal moment in India's economic trajectory, delivering a much-needed boost to the middle class while advancing the country's goal of becoming a 5 trillion USD economy.

Key measures, such as income tax reductions including a no-tax threshold up to Rs 12 lakh and expanded exemptions and incentives for startups and MSMEs, will directly benefit individual incomes and entrepreneurial ventures, he said in a statement here.

This budget clearly empowers the middle class and fosters a vibrant, self-reliant economy, he added.

The direction of the budget is towards the goal of Vikasit Bharat, Confederation of Indian Industry (CII) Kerala Chairman Vinod Manjila said.

"A very positive budget that takes care of the diverse sectors of the economy including agriculture, middle class, exports, startups and ease of doing business", he added.

It will benefit Kerala industry with regard to tourism, health care, and export, Manjila said.

George Kurian
'Centre walking on worn-out path, not willing to break free,' says former finance minister P Chidambaram

The Cochin Chamber of Commerce and Industry has given a thumbs up' to the various budget proposals, aligning with the key insights from the Economic Survey presented in Parliament on January 30, 2025, which support and satisfy the Union Budget 2025, according to a release issued by the organisation.

"Exemption extended to ship building units should be welcome by Kerala as it should directly help Cochin Shipyard," it said.

The Chamber president S P Kamath, welcomed the central government's initiative to rationalize customs duty on marine products in the Union Budget, recognizing it as a significant boost for the industry.

The Union Budget has a laser sharp focus on boosting economic growth, said T S Kalyanaraman, Managing Director of Kalyan Jewellers.

"With definitive steps in infrastructure investment and key support for agriculture, manufacturing and urban development, there is a deep commitment to continue on the growth momentum.

As brands continue their growth in the real Bharat, the Centres of Excellence for Skilling, coupled with global skilling partnerships, will add to the available talent pool," he added.

The government's decision to ease visa norms for medical tourism in budget is a game-changer, especially for Kerala, a state that has long been a trusted destination for international patients, Azad Moopen, Founder and Chairman of Aster DM Healthcare said.

Elaborating, he said: "With its world-class hospitals, holistic wellness treatments, and skilled medical professionals, Kerala has built a strong reputation in global healthcare. This move will strengthen Kerala's position as a leading medical tourism hub while also boosting local businesses, hospitality, and allied services."

George Kurian
Budget decoded | How Rs 12 lakh can turn tax free; new tax slabs

Commenting on the Union Budget, FICCI Kerala Chairman V P Nandakumar said budget with on-going reform agenda on Urban Development, Power Sector, Taxation, Financial Sector and Regulatory reform with focus on growth engine on sectors such as agriculture, MSME, investments, exports is well appreciated.

"Setting up of global cluster for toys manufacturing, allocations of Rs 25,000 crores for Maritime Development Fund, Expansion of UDAN centres to new destinations, extending benefit of existing tonnage tax to inland vessels registered under the Indian Vessels Act are also welcome move," he said in a release.

The Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES), a prominent traders' body in the state, also welcomed the budget.

"There may not be direct announcements for traders, but the benefits extended to the middle class will positively impact small and medium traders," KVVES state vice-president P C Jacob said.

Shivadas B Menon, Managing Director, Sterling Farm Research and Services Pvt Ltd, said the budget provides a good opportunity for Kerala.

The state has to devise ways to take advantage of the announcements made in areas like MSME, agriculture, Value addition exports and investments.

George Kurian
Middle class is back -- both in the Budget and political discussions

Yadu Narayanan Mooss, Director, Vaidyaratnam Oushadhashala said the steps announced in the tourism and healthcare sector will have a positive impact for the Ayurveda sector.

The decision to give concessions to Visa fee for medical tourism will also benefit the ayurveda sector and Medical value Tourism in Kerala.

Venkatraman Venkateswaran, Group President and CFO of Kerala-based Federal Bank said the budget is growth-oriented, focusing on our journey towards Viksit Bharat.

Labour-intensive sectors like agriculture, footwear, leather, toys, and food processing, which are largely MSME sectors, have received a boost.

This budget complements our focus on the MSME sector and presents an opportunity to further strengthen our relationship with customers and finance their growth.

The personal income tax rate reduction also provides a boost from the consumption side, he said.

In summary, it is a balanced budget with a boost to consumption, he added.

George Kurian
Budget 2025: More money in middle-class pockets, but will it move the growth and consumption needle?

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com