Kerala Chief Minister Questions State's Exclusion from Union Budget 2026
Kerala Chief Minister Pinarayi Vijayan has launched a scathing critique of the Union Budget for 2026-27, presented by Finance Minister Nirmala Sitharaman, accusing the central government of deliberately overlooking the state's longstanding developmental demands. In a strongly worded statement, Vijayan questioned whether Kerala still features on India's map, highlighting what he perceives as systematic neglect in the budgetary allocations.
Key State Demands Completely Ignored
Vijayan pointed out that several crucial infrastructure projects that Kerala has been pursuing for years found no mention in the budget document. The most prominent among these is the establishment of an All India Institute of Medical Sciences (AIIMS) in Kozhikode district, for which the state government has already identified suitable land. Despite Kerala's persistent requests, this healthcare institution remains unaddressed in the financial plan.
Additionally, the budget failed to allocate resources for high-speed railway corridors that Kerala has been advocating to enhance connectivity and economic development. This omission is particularly striking given that the budget announced seven such corridors for other regions, leaving Kerala without any dedicated railway infrastructure projects.
Vizhinjam Port and Ayurveda Institute Overlooked
The state's request for a special financial package to support the second phase of the Vizhinjam international seaport project also went unheeded. This deep-water port is considered strategically important for Kerala's maritime economy and regional trade prospects.
Furthermore, while the budget proposed establishing three new All India Institutes of Ayurveda, Kerala—despite its rich tradition and expertise in Ayurvedic medicine—was excluded from these plans. This decision has raised eyebrows given the state's historical association with this traditional medicinal system.
Contrasting Proposals and Political Context
The budget did include some Kerala-related initiatives, such as:
- A proposed rare earth corridor connecting Kerala with other southern states
- Development of turtle trails along key nesting sites in Kerala's coastal regions
However, these limited inclusions stand in stark contrast to the state's major infrastructure demands. The timing of the budget is particularly significant as it comes ahead of Assembly elections in Kerala, with the BJP promoting its "Vikasit Kerala" slogan under the Modi government.
BJP's Counter-Argument and Development Debate
BJP state president Rajeev Chandrasekhar responded to Vijayan's criticism by shifting blame to the state government. He questioned whether Kerala has effectively implemented projects previously sanctioned by the central government and suggested that the National Democratic Alliance (NDA) needs to come to power in the state to ensure proper project execution.
"We are ready for a debate on development, and who works for the state and its people," Chandrasekhar stated, framing the budget discussion within the broader political contestation over Kerala's development trajectory.
The budget controversy has reignited debates about center-state relations, regional development priorities, and the political dynamics shaping resource allocation in India's federal structure.
