Fri Feb 07 09:08:03 UTC 2025: ## Kerala Opposition Leader Slams Budget 2025-26 as “False and Cruel”

**Thiruvananthapuram, February 7, 2025** – Kerala’s Leader of the Opposition, V.D. Satheesan, today vehemently criticized the state’s 2025-26 budget, calling it a “false and cruel construct” that offers no hope for the state. His criticism centered on a proposed 50% increase in land tax, which he described as “unreasonably high” and exacerbating the cost of living crisis for working-class citizens. He demanded the government withdraw the increase or face significant public protests.

Satheesan further accused the government of fiscal mismanagement and lax tax administration, leading to depleted coffers and drastic, clandestine cuts to the 2024-25 budget via an executive order bypassing legislative approval. These cuts, he stated, impacted crucial social welfare programs including minority scholarships, Scheduled Caste/Scheduled Tribe welfare schemes, and the flagship LIFE Mission aimed at eradicating homelessness. He highlighted the significant shortfall in funding for the LIFE Mission, with only 24% of the allocated ₹500 crore utilized.

The opposition leader also pointed to the government’s outstanding debts to contractors for completed projects, unpaid dues to local bodies, and a massive ₹700 crore debt owed to Supplyco suppliers, including paddy farmers. He questioned the allocation of only ₹200 crore to Supplyco, stating it barely covers existing debt and failing to address working capital needs for the next fiscal year.

Satheesan painted a grim picture of the state’s financial health, citing the collapse of key medical insurance schemes due to unpaid hospital bills and the halting of the Jal Jeevan Mission due to outstanding debts to contractors. He accused the Finance Minister, K.N. Balagopal, of misleading the public regarding revenue increases and manipulating figures to mask the state’s dire financial situation. He questioned the lack of benefit from the GST regime and criticized the Kerala Infrastructure Investment Board (KIIFB) for its massive borrowings and investment in non-revenue-generating projects, significantly increasing the state’s debt burden. He concluded that the budget represented the government’s “farewell and disclaim responsibility document” for nine years of misrule.

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