Kerala Budget: With polls around, LDF turned financial statement into 'political document', says Congress

Thiruvananthapuram: Opposition parties in Kerala on Thursday lashed out at the ruling LDF over its budget, accusing the government of turning the financial statement into a "political document," and charged that it contained only "false promises".

It also lacked credibility and reflected the "incapability" of the 10 year-old Left front.

Speaking to reporters after Finance Minister K N Balagopal presented the state's 77th budget, Leader of the Opposition in the Kerala Assembly V D Satheesan said the document showed that the government was promising to do what it had failed to achieve over the last decade.

"In the budget they say they will do what they failed to do in 10 years. They claim there will be changes in sectors where nothing was done during this period," he said.

Satheesan alleged that the sanctity of the budget had been lost by mixing politics with it.

He said the state budget is presented under Article 202 of the Constitution and is an annual financial statement, not a political document.

"Turning it into a political document and making announcements ahead of elections is meant to mislead the public," the Congress leader charged.

He said the budget speech was lengthy as minute details of plans were announced, but the actual status of plan implementation was "pathetic."

"In January 2026, plan expenditure was only 38 per cent. Only one month is left to spend the remaining plan funds, with elections likely to be declared by March," he said.

Satheesan alleged that 2025-26 was the worst year in Kerala's history in terms of plan expenditure.

He said funds were increased only for projects announced earlier, while the size of plan expenditure had not increased over the past five years.

"Usually, towards the end of a government’s tenure, plan size increases by 15-20 per cent. That did not happen this time."

He said restrictions were imposed on treasury transactions, citing an August 19, 2025 order that put a cap on those above Rs 10 lakh.

Referring to the finance minister's use of the term "new normal", Satheesan said the new normal was to make announcements, not implement them, and then cut plan size and expenditure.

He alleged that the state's fiscal credibility had been lost over the past five years.

He also accused the government of failing to fulfil its promise to raise social security pensions to Rs 2,500 from Rs 1,600 in 2021.

Satheesan claimed Kerala had the highest inflation in the country, adding that while the Chief Minister denied it, the Planning Board's economic review had stated so.

He also alleged that the government had failed in market intervention, as funds announced earlier could not be allocated due to shortage.

He said revenue growth was overstated by comparing figures with the covid period.

"The revenue estimated in the 2025-26 budget was Rs 1.52 lakh crore, but in today's budget it is shown as Rs 1.32 lakh crore. The expenditure last year was estimated at Rs 1.79 lakh crore, but the actual expenditure was Rs 1.73 lakh crore. The revenue deficit was estimated at Rs 27 crore but later rose to Rs 36 crore,” he said.

Satheesan said the government announced a Pay Commission at the end of its tenure, knowing that its recommendations would have to be implemented by the next government.

He added that six Dearness Allowance (DA) arrears of public servants, estimated at around Rs 1 lakh crore, were still pending.

He also alleged that while Rs 70 crore was announced last year to address human-wildlife conflict and raised to Rs 100 crore this year, only 42 per cent of the allocation had been spent.

Referring to rubber prices, Satheesan said the UDF government had fixed the price at Rs 150 in 2015, but in the last 10 years it was increased by only Rs 50 despite promises to raise it to Rs 250.

"This budget has no relevance as it will not be implemented. The (Congress-led) UDF government will present and implement the 2026-27 budget,” he said.

He further alleged that tax revenue growth was less than 10 per cent, against an expected 30 per cent, and that the state's direct and indirect debt had risen to several lakh crore rupees.

Satheesan also accused the government of ignoring protests by ASHA workers and anganwadi employees demanding wage hike, and said recent marginal increases were announced only with elections approaching.

He said the government should conduct a performance audit and release a white paper on the state's finances.

“There is no other government in Kerala's history that has destroyed the financial situation to this extent,” he alleged.

Indian Union Muslim League (IUML) leader P K Kunhalikutty said the budget itself reflected the government's failure.

"It is a document that clearly shows the government's failure when compared to previous budgets. It contains only false promises," he said.