Widespread protest in Kerala against neglect of state in Union budget

Thiruvananthapuram: The CPI M State Committee is organizing a protest across its area centers against the central government's neglect of Kerala's key demands in the Union Budget. Titled "Keralam Entha Indiayilalle?" (Isn't Kerala in India?), the protest began at the area level on February 19 as a foot march and will continue until February 23. By February 25, the protest will shift to central government offices, demanding the rightful allocation of funds to Kerala. Thousands of party members and sympathisers are expected to participate in the demonstrations.

Unjust Treatment of Kerala

During her 92- minutes speech presenting the Union Budget, Finance Minister Nirmala Sitharaman did not mention "Kerala" even once. Key demands from the state, such as a special financial package of rupees 24,000 crores and demand for rupees 5,000 crores for the Vizhinjam Sea Port Project, were completely overlooked. Additionally, a package of rupees 2,000 crores for the rehabilitation of people affected by the landslide in Wayanad was also ignored. Kerala’s primary requirements, including an increase in the borrowing ceiling from 3 percentage to 3.5 percentage of the Gross State Domestic Product (GSDP) and addressing fiscal issues like the extension of GST compensation, were entirely disregarded.

The protest highlights the growing discontent over the central government's apparent disregard for Kerala’s developmental needs and financial concerns. Demands such as rupees 1,000 crores for human-wildlife conflict, rupees 4,500 crores for fighting climate change, rupees 300 crores in support for non-resident Keralites, rupees 2,000 crores for the needs of migrants returning to Kerala, and a proposal to increase the Minimum Support Price (MSP) of paddy from rupees 23 per kg to rupees 40 per kg were completely ignored by the central government. Proposed projects like the Semi High -Speed Rail Project from Thiruvananthapuram to Kasaragod (named Silver Line) and the Sabari Rail project failed to find a place in the Union Budget.

"The Union Budget 2025 has completely ignored Kerala’s crucial demands. No aid for Wayanad, no AIIMS, and no support for Vizhinjam. Our rightful borrowing limits are curtailed, industries sidelined, and farmers neglected. This is a blatant attack on federalism, prioritizing vested interests over national interests. We strongly condemn this injustice," wrote Kerala Chief Minister Pinarayi Vijayan on X (formerly Twitter).

Reigniting the Debate on Anti-Kerala Sentiment

Union Minister George Kurian's remarks that Kerala should declare itself a backward state to benefit from the Centre have received backlash from general public. Speaking to the national media, he suggested that Kerala could secure a place in the Union Budget if it declared itself a backward state in terms of roads, infrastructure, and hospitals. The BJP -led NDA government is being accused of attempting to tarnish Kerala's achievements by belittling its efforts in all developmental sectors.

Kurian's comment has been sharply criticized by CPI(M) leaders. State Secretary M V Govindan stated that Kurian’s remarks highlighted the "Anti- Kerala" stance of the BJP at the Centre. "The BJP's goal is to make Kerala poor and backward. After failing in previous attempts to control the state, the Centre is now denying Kerala the allocations it deserves," Govindan added. Opposition Leader V D Satheeshan also criticised Kurian’s statement, urging him to withdraw his comment and apologise to the people of Kerala.

Asking for a Fair Share

Kerala’s grievances stem from its high tax contributions and low returns. According to a 2021 report by the Reserve Bank of India (RBI), Kerala ranks among the top states in terms of tax revenue generation. However, the state receives significantly less in return from the central pool of taxes. For instance, in the 2021--22 Union Budget, Kerala was allocated only 1.9% of the total divisible pool, despite contributing nearly 3.8% of the nation's GDP. Last fiscal year, Kerala received the least amount of tax share, resulting in an annual loss of thousands of crores.

Compensation in the Form of a Loan

Six months after the Wayanad landslide, which killed more than 300 people, rupees 529.5 crores has been allotted as a loan from the central government. However, this also came with an unrealistic deadline, where the allotted money was to be spent by March 31. The money was provided to Kerala as an interest- free long-term loan. Additionally, the Union government has yet to take a stand on the ₹2,000 crores special package to rebuild Mundakkai and Chooralmala.