"Blatant declaration of hostility toward Kerala," CM Vijayan criticises Budget 2026

Thiruvananthapuram (Kerala) [India], February 1 : Kerala Chief Minister Pinarayi Vijayan on Sunday criticised the Union Budget 2026, terming it a "blatant declaration of hostility" toward the state.
In a post on X, Vijayan said the budget ignored Kerala's demands for AIIMS and railway corridors, effectively "erasing Kerala from the map."
He added that the budget prioritises corporate interests over the common man, slashes MGNREGS funds, and promotes private mining through proposed 'rare earth corridors,' describing it as a "nefarious strike against our sovereignty and federal values."
Vijayan asserted that Kerala "will not stay silent against this neglect," emphasising the state's discontent with the Union government's fiscal decisions.
"The Union Budget 2026 presented by @nsitharaman is a blatant declaration of hostility toward Kerala. By ignoring our demands for AIIMS and railway corridors, the @FinMinIndia has erased Kerala from the map. This budget abandons the common man for corporate greed. Slashing MGNREGS funds and pushing for private mining via 'rare earth corridors' is a nefarious strike against our sovereignty and federal values. Kerala will not stay silent against this neglect," he posted on X.
Earlier today, Kerala CM released a statement in which he highlighted that the discontinuation of revenue deficit grants threatens the state's financial stability.
According to Vijayan, Kerala's total grants have seen a steep reduction -- from 2.2 lakh crore in 2021 to 1.4 lakh crore in the current budget.
"This budget, driven entirely by neo-liberal economic logic, is a policy document designed to enrich corporates while pushing ordinary people into deeper poverty. Not only is Kerala being denied its rightful share from the divisible pool, but the decision to discontinue revenue deficit grants is an attempt to undermine the state's financial stability. Overall, there has been a major cut in grants."
He further added, "While the total grant was 2.2 lakh crore in 2021, it has now been reduced to ₹1.4 lakh crore. The slight increase in tax devolution for Kerala is only what the state rightfully deserves, considering its achievements in population control and domestic revenue growth. However, the denial of grants means there is no actual increase in the total central share Kerala receives a matter of serious concern."
Vijayan criticised the Union Budget 2026-27, warning that certain provisions threaten the state's economic and environmental interests. He added that the budget further demonstrates how both the Congress and BJP governments have repeatedly misled Kerala with false promises, including on the Railway Coach Factory.
"The Centre's move to seize Kerala's mineral resources is extremely dangerous. The budget announcement indicates a policy that opens the way for private corporate mining. By scrapping even the strict norms of the Ministry of Environment, the Centre is fast-tracking environmental clearances to benefit private entities. The Kerala government had announced in the state budget that a mineral corridor linking Vizhinjam, Chavara, and Kochi would be established in the public sector. The Centre's move to hand over mineral resources to private corporations runs counter to the state's policy and is harmful. This budget further proves how both the Congress and the BJP governments have deceived Kerala with false promises, including on the Railway Coach Factory," he said.
Vijayan also raised concerns over cuts in welfare allocations, stating, "Despite rising. inflation and severe price hikes, the reductions in food, healthcare, and fertilizer subsidies will push people into further hardship. Tens of thousands of crores have been slashed from the allocation for the employment guarantee scheme, which will devastate rural livelihoods. The Centre has refused to ensure fair prices for agricultural products or regulate imports that harm Kerala's economy. Ignoring key central PSUs like FACT and Kochi Refinery, the budget has also disappointed the tourism, education, and industrial sectors."