THIRUVANANTHAPURAM: A Rise in tax share that would see it receiving around Rs 9,500 crore more from the previous fiscal was all Kerala had to cheer about in the Union Budget. Both the ruling LDF and Opposition UDF slammed the Budget for the ‘total neglect’ towards the state.
Kerala will get a higher share from the divisible pool of union taxes and duties for five years starting 2026-27. This follows the 16th Finance Commission’s recommendation to raise the state’s share from 1.925% to 2.382%. Accordingly, Rs 36,355 crore has been earmarked for Kerala in the budget, up from Rs 26,814 crore last year.
A ‘Rare Earth Corridor’ and ‘Turtle Trail’ are the projects announced for the state. However, none of the major proposals presented by Kerala Finance Minister K N Balagopal at the pre-budget consultation were considered. While the state sought Rs 1,000 crore for the ‘Rare Earth Corridor’ project it announced in its budget on January 29, the one in the Union Budget is a central scheme.
Chief Minister Pinarayi Vijayan said the Centre’s ‘Rare Earth Corridor’ aims to appropriate Kerala’s mineral wealth and facilitate private monopoly in mining. He alleged that the budget revealed the Centre’s ‘intense discrimination and neglect’ towards Kerala. “Our demands for AIIMS, high speed railway corridors and Vizhinjam port package were ignored. Retaining vertical devolution share at 41% weakens principles of federalism,” he said.
Leader of Opposition V D Satheesan wondered whether Kerala was part of India. “PM Narendra Modi and BJP leaders made claims about Vikasitha Kerala. Will this Budget help in state’s development? This is a warning. It reveals BJP’s neglect towards Kerala,” he alleged. Defending the Budget, BJP state president Rajeev Chandrasekhar said it was futile to announce projects for Kerala. “The state did not implement projects sanctioned by the Centre. It did not acquire land for AIIMS. Though the Centre sanctioned money for PM Awas Yojana, the state did not utilise it,” he alleged.