Wed Feb 12 19:56:42 UTC 2025: ## Kerala Slams Union Budget for “Continued Neglect”

**Thiruvananthapuram, February 13, 2025** – Kerala’s ruling Left Democratic Front (LDF) and the opposition United Democratic Front (UDF) have vehemently criticized the recently presented Union Budget, accusing the central government of ignoring the state’s financial needs. The budget has sparked outrage over what the state government calls the Centre’s “continued neglect” and a deepening distrust between the two entities.

The Kerala government has repeatedly accused the BJP-led central government of implementing biased policies that worsen revenue imbalances and undermine cooperative federalism. The state’s demands for a ₹24,000 crore special economic package, a ₹2,000 crore package for Wayanad landslide victims, and ₹5,000 crore for the Vizhinjam port project were all ignored in the budget.

Adding fuel to the fire, Union Minister George Kurian suggested that Kerala should declare itself backward to receive increased funding from the Finance Commission, a comment that drew sharp criticism. While the Kerala BJP lauded the budget, its claims were overshadowed by the controversy.

Kerala’s Finance Minister, K.N. Balagopal, termed the budget “extremely disappointing,” highlighting its lack of a pan-India perspective sensitive to diverse state needs. The state’s own budget, presented earlier this month, allocated ₹750 crore for Wayanad landslide relief, a fraction of the estimated ₹2,221 crore needed for reconstruction.

Disappointment also extended to the Railway Budget. While ₹3,042 crore was allocated for Kerala’s rail infrastructure, key projects like the Nilambur-Nanjangud and Sabari rail lines remained unannounced.

Chief Minister Pinarayi Vijayan reiterated accusations that the Modi government is punishing Kerala for its achievements in education, health, and social welfare, further accusing the Centre of violating constitutional federal principles. Kerala’s share of the divisible tax pool has shrunk significantly over the years, prompting a Supreme Court challenge against the Centre’s restrictions on the state’s borrowing capacity. The state’s fiscal health, as noted in the NITI Aayog Fiscal Health Index 2025, presents significant challenges, including high debt and weak revenue generation. The upcoming recommendations of the 16th Finance Commission are anticipated to play a crucial role in resolving the ongoing financial disputes between Kerala and the central government.

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