Criticisms
Leader of Opposition Pinarayi Vijayan criticised the UDF government's Budget, alleging that its claim of a severe financial crisis was contradicted by the allocations. “Several announcements appeared to be repackaged versions of schemes announced by the LDF government under different names,” he alleged. LDF as a whole has said that this is a pro-privatisation and corporate budget without any welfare, also ignoring the Union government's policies of hurting the state's finances. Former Finance Minister Thomas Isaac questions bridging the ₹20,000-crore shortfall. Former MP and MLA, M B Rajesh, said that this budget is a wishlist rather than a reality.
‘There is no money...’ Rajeev Chandrasekhar MLA expresses disappointment with the budget 2026. He claims that the five Indira Guarantees remain unfulfilled.
Kozhikode and Trivandrum Light metros hardly got any strong allocation. Also, the Oomen Chandy Insurance Scheme hardly got Rs 10 crore, which gives every family Rs 25 lakh insurance for which is not sufficient. There have been increased taxes on liquor as a sin tax. LDF also highlighted that there was very little emphasis on the agricultural sector. There was no hike in welfare pensions as promised.
Analysis
Beyond doubt, this budget was paving the way for populist announcements as well as for the foundation for a Puthuyuga Kerala, as CM VD Satheesan claims, is a New Kerala with inclusive growth and sustainable development. He said that the government is committed to stimulating the economy through attracting large-scale investments across various sectors, mobilising financial resources for the public exchequer, and ensuring the equitable distribution of wealth. In the opening remarks, he also claimed that Kerala’s social and development indicators have been witnessing a slump of late. Private investment the only way to boost the state’s economy, said CM.
As per the campaign promise and the chief argument of CM Satheesan and UDF in opposition, that Kerala Infrastructure Investment Board (KIIFB) is unconstitutional, the government. He has appointed a special expert committee to examine potential problems and reforms for the same. Restructuring KIIFB for transparency has been an important UDF policy. They claim that KIIFB’s off-Budget borrowings are creating economic instability.
CM has announced that he will give enough space for private players and corporates to invest in the state to overcome economic and demographic challenges. ₹400 crore for Mission Samudra and trying to make Kerala a unified port city is the biggest highlight of the budget. This is a dream project of VD Satheesan himself. There was a strong push for women's empowerment with a long list of girls and women. Also, which has to be read with the execution of the Priyadarshini scheme as part of the Indira Gandhi. As last time, there is a massive push for infrastructure, transportation, etc. Also, enough push for the education, environment, and tourism sectors. The budget has tried to touch multiple sectors as well as almost all of the geographies of the state.
The state is still under the grip of a cash crunch and borrowings, and there have been no concrete steps to overcome that situation. There were special projects dedicated to constituencies of the ministers and UDF MLAs. There was no increase in Welfare pensions despite election-based promises.
There has been a strong push for educational, healthcare, infrastructure, and transportation in recent years, which is a continuation of the previous LDF governments. The government has moved away from the K-Rail Silverline project and didn't mention any high-speed railway in the budget. Social welfare may have taken a back seat, unlike other typical UDF-LDF budgets. Lastly, we can see this is a new-age-modern budget yet with a touch of culture and historicity.
Credits- The Hindu, Manorama Online/Onmanorama, ThePrint, YouTube
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