Both the ruling Left Democratic Front (LDF) and the opposition United Democratic Front (UDF) in Kerala expressed disappointment with the Union Budget 2026-27, highlighting the absence of proposed AIIMS and high-speed rail projects for the state. Kerala Finance Minister KN Balagopal criticized the budget, calling it a “huge disappointment” and stating that it failed to offer a clear plan for the state’s financial recovery. The political parties in Kerala criticized the newly announced turtle conservation project, questioning its potential impact on the state’s economy.
Leader of Opposition V D Satheesan raised concerns about the turtle project, suggesting it would not significantly benefit Kerala’s financial situation. He also expressed doubts about the proposed rare earth corridor, urging the Centre to involve the state government in mineral-related initiatives. The Indian Union Muslim League (IUML) criticized the budget for prioritizing a turtle project over essential infrastructure development, considering it an insult to the state.
CPI-M Rajya Sabha member V Sivadasan pointed out the budget’s silence on job creation and enhancing the living standards of the underprivileged. Despite the criticisms, the budget did offer some relief by announcing projects related to coconut development, cocoa, and cashew. Additionally, the Centre increased Kerala’s share of central taxes to 2.38 per cent from 1.92 per cent under the 15th Finance Commission, resulting in a higher allocation of Rs 36,500 crore for the state.
State BJP president Rajeev Chandrasekhar defended the Centre, stating that it was inaccurate to claim Kerala received nothing from the budget. He responded sharply to queries about the exclusion of the high-speed rail project, cautioning the media against influencing the agenda through their reporting.
