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        Case ID :

        Kerala CM Vijayan accuses union budget of 'ignoring' state's crucial demands

        February 1, 2025

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        Thiruvananthapuram, Feb 1 (PTI) Kerala Chief Minister Pinarayi Vijayan on Saturday heavily criticised the union budget and accused it of "neglecting" all the significant demands of the state, which he termed "condemnable", "extremely disappointing", and "unfortunate".

        In a hard-hitting statement, the CM made it clear that the state had sought a special financial package of Rs 24,000 crore and another package for the rehabilitation of Wayanad, which faced an unprecedented landslide tragedy, in the union budget.

        It was also demanded that consideration be given to the Vizhinjam port, taking into account its national significance, he said.

        "None of these have been considered in the budget. No major project was allocated to the state. All the persistent demands, like AIIMS and the railway coach factory, have been rejected in this budget as well," Vijayan said.

        The union budget's approach, which completely disregards Kerala’s key demands, is "highly condemnable", he said.

        While a total of Rs 25 lakh crore has been earmarked for the state, Kerala is unlikely to receive even Rs 40,000 crore, he said, adding that demands put forward by the state in terms of borrowing limits have also been rejected.

        "Kerala is being punished for its progress, including in the education sector. If progress has been achieved, there are no allocations. If a sector still requires progress, there are no allocations for that either," he claimed.

        Alleging that the union budget has become a political document that disregards Kerala's expectations, Vijayan said this is "extremely disappointing and unfortunate".

        "A budget should be an economic statement, but this one is shaped by electoral calculations, focusing only on regions where elections are due. This undermines the very concept of balanced development," Vijayan rued.

        There is no increase in the minimum support price for agricultural produce, he said, adding that rubber, paddy, and coconut farming have been "ignored".

        Proposals submitted for these sectors have not been approved. There is no regulation on rubber imports, Vijayan added.

        OBCs, Scheduled Castes and Tribes, and the agricultural and farm labour sectors have not been granted their rightful share, he alleged.

        Not only has the budget failed to provide adequate support for agriculture and industry, but various agricultural subsidies have also been cut, he further charged.

        Noting that the MGNREGA scheme has been a relief for economically weaker sections, he said that even its rightful allocation has not been ensured in the budget.

        The union budget's approach exacerbates inflation, unemployment, and poverty while stifling development, he alleged.

        By denying states their rightful dues, it violates the federal principles enshrined in the Constitution, which is utterly unacceptable, the CM added.

        "The Union Budget 2025 has completely ignored Kerala’s crucial demands—no aid for Wayanad, no AIIMS, and no support for Vizhinjam. Our rightful borrowing limits are curtailed, industries sidelined, and farmers neglected. This is a blatant attack on federalism, prioritising electoral interests over genuine development. We strongly condemn this injustice," Vijayan wrote on 'X'.

        Sharing similar views, Leader of Opposition V D Satheesan also criticised the union budget, saying that Kerala suffered severe neglect in it, as even the name of the state had not been mentioned.

        The union budget only comprises an agenda to gain certain things for political purposes," the LoP alleged. PTI LGK SSK ROH

        Federal principles undermined as budget sidelines Kerala's key demands, prioritising electoral regions over balanced development. Union budget allocations exclude Kerala's requested special package for Wayanad rehabilitation, project funding for Vizhinjam port, and major institutional projects such as AIIMS and a railway coach factory. The State further alleges denial of requested borrowing flexibility, reduced net transfers, absence of key education and industry allocations, cuts to agricultural subsidies for rubber, paddy and coconut, lack of import regulation proposals, and inadequate provision for welfare schemes including MGNREGA, which together are characterised as violating federal principles by denying Kerala its fiscal entitlements.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Federal principles undermined as budget sidelines Kerala's key demands, prioritising electoral regions over balanced development.

                                Union budget allocations exclude Kerala's requested special package for Wayanad rehabilitation, project funding for Vizhinjam port, and major institutional projects such as AIIMS and a railway coach factory. The State further alleges denial of requested borrowing flexibility, reduced net transfers, absence of key education and industry allocations, cuts to agricultural subsidies for rubber, paddy and coconut, lack of import regulation proposals, and inadequate provision for welfare schemes including MGNREGA, which together are characterised as violating federal principles by denying Kerala its fiscal entitlements.





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