Both the ruling Left Democratic Front (LDF) and the Opposition United Democratic Front (UDF) in Kerala criticized the Union Budget 2026-27 for not including proposed AIIMS and high-speed rail projects for the state. Kerala Finance Minister K.N. Balagopal expressed disappointment, stating that the budget did not offer significant projects for the state, aggravating its financial crisis. The political spectrum in Kerala united in criticizing the newly announced turtle conservation project, questioning its impact on the state’s economy.
Leader of Opposition V.D. Satheesan criticized the turtle project, suggesting it would not benefit the state’s financial well-being. Satheesan also raised concerns about the proposed rare earth corridor, suspecting it might divert the state’s resources to corporate interests. The Indian Union Muslim League (IUML) criticized the budget, considering the turtle project as an insult to Kerala, especially in place of essential infrastructure developments.
CPI-M Rajya Sabha member V. Sivadasan highlighted the budget’s silence on job creation and improving living standards for the poor. Despite criticisms, the budget did provide some relief by announcing projects for coconut development, cocoa, and cashew in Kerala. The Centre increased Kerala’s share of central taxes to 2.38 per cent from 1.92 per cent under the 16th Finance Commission, allocating Rs 36,500 crore to the state.
State BJP President Rajeev Chandrasekhar defended the Centre, stating that Kerala did receive allocations, contrary to claims of receiving nothing. Chandrasekhar responded sharply to questions about the absence of the high-speed rail project, urging the media not to dictate the agenda through their reporting.
