Union Budget 2025 | Kerala laments over discrimination, sabotage of federal principles

'The budget presented today reflected the Centre's political approach of giving more focus to states going to the polls. It is highly deplorable,' said Kerala CM Pinarayi Vijayan

Thiruvananthapuram: With no allocations for rehabilitation of the landslide survivors of Wayanad, Vizhinjam international seaport and other key demands of the left-front government in Kerala, Chief Minister Pinarayi Vijayan has termed the Union Budget as yet another instance of sabotaging the federal principles through a discriminatory approach towards states.

"The Union Budget should have been a financial document aimed at the whole nation's comprehensive development. But the budget presented today reflected the Centre's political approach of giving more focus to states going to the polls. It is highly deplorable," said Vijayan.

The key demands of Kerala were a Rs 2,000 crore special package for rehabilitation of Wayanad landslide survivors, special assistance of Rs 5,000 crore for setting up road and rail connectivity for Vizhinjam international container transshipment port, Rs 24,000 crore special package to tide over the fiscal stress caused by cuts in central allocations and enhancing the borrowing limit to 3.5 per cent of the gross state domestic product (GSDP). None of these have been considered by the Centre.

Kerala finance minister K N Balagopal termed the budget as a political gimmick of the BJP government at the Centre by showing discriminatory approach with political motives.

"Even when the budget focuses on boosting exports, there is no allocation for development of Vizhinjam international seaport which is emerging as a key export gateway of the country. In order to boost the rural economy more allocation should have been made to Mahatma Gandhi National Rural Employment Guarantee Scheme. While promoting Bihar's Makhana cultivation, the centre should have also taken steps to boost the rubber sector which could boost the Indian economy," said Balagopal.

Both the Chief Minister and the finance minister pointed out that Kerala stands to lose considerable allocations for development initiatives as the state already made advancements that were proposed in the budget now. The Atal Tinkering Labs is an example. Kerala already made it operational in most schools. Hence the state would lose the allocations made in the budget for it. The centre should have duly recognised it by making allocations for advanced development activities to Kerala, said the chief minister.

"Since the Prime Minister himself visited the landslide hit areas of Wayanad and had witnessed the hardships of the survivors, the state was having high hopes of centre's special assistance. But that hope was also dashed," said Balagopal.

The opposition party Congress in Kerala also flayed that utmost discrimination was shown towards Kerala in the union budget with not even a mention about the state.

Opposition leader V D Satheesan said that the zero income tax for up to Rs 12 lakh was a political gimmick to create an impression that the budget was common man-friendly. There are no serious efforts to address key issues like unemployment, he said.

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Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.