The only saving grace – if it can be called one – is Kerala’s inclusion in the Dedicated Rare Earth Corridor scheme. Another crumb is the State’s inclusion in a proposed turtle trails project along nestling sites in three coastal states.

However, major demands in the wish list, including a request for a Rs 21,000-crore special fiscal correction package to overcome the current year’s borrowing constraints and an All India Institute of Medical Science remain unfulfilled.

Kerala’s long-standing demand for a high-speed rail corridor also failed to figure among seven such corridors announced in the Budget. A host of proposals seeking support for port-led projects centered on Vizhinjam international airport, which included rail connectivity, also remained untouched.

The 16th Finance Commission report, tabled along with the Budget has, however raised Kerala’s share in the divisible tax pool to 2.382 per cent from 1.92 under the 15th Finance Commission. But the Commission rejected Kerala’s demand to raise the share of States in the divisible tax pool from 41 per cent to 50 percent.

Understandably, the Budget has come in for strong criticism with Chief Minister Pinarayi Vijayan describing it as “documentary evidence” of cruel neglect towards Kerala”. In a strongly-worded statement, Pinarayi accused the Union Government of deliberately sidelining the state in all sectors, weakening the concept of federalism in the process.

The CM said the Union Finance Minister seemed to have forgotten that Kerala existed on India’s map. The Centre is showing clear discrimination. BJP-ruled States get priority while Kerala is sidelined. “We must recognise our own worth and fight for it,” he added.

The Chief Minister blasted the opposition, including the Congress, the Indian Union Muslim League and the BJP for adopting an anti-development stance. He regretted the Union Government’s failure to support Kerala even during adversities and, shockingly discouraged foreign aid to Kerala.

In other States, the government and the opposition work and stand together for development and to fulfil the demands of the people. In Kerala, however, the Opposition opposes development, thereby stalling progress.

He reiterated Kerala’s demand for semi-high speed rail and an AIIMS. The Union Government has approved AIIMS in principle. Four sites were proposed and Kozhikode was selected. But the projects find no mention even in this Budget. Equally shocking was the neglect of the Vizhinjam international port capable of handling large ships despite its strategic importance.

“This year’s budget, which is completely based on neoliberal economic logic, is a policy document meant to benefit corporates and push the common people further into poverty. Not only is Kerala not getting what it deserves from the Central share, the Union Government is also trying to destroy the State’s economic base by deciding not to continue revenue deficit grants. Overall, there has been a huge cut in the amount of grants. The grant, which was Rs 2.2 lakh crore in 2021, has now come down to Rs 1.4 lakh crore. The small increase in tax share is the right of the State, considering the achievements made by Kerala in population control and domestic revenue growth,” he pointed out.

The CM was wary of Budget proposal for a rare earth corridor. He sees in it a dangerous attempt by the Union Government to seize Kerala’s mineral wealth. The announcement in the budget will pave the way for private monopolies to mine rare earths. The move is to help the private sector by speeding up the issuance of environmental clearances by repealing even the strict conditions of the Ministry of Environment. Handing over the mineral wealth to private monopolies in complete contradiction of the State’s stance is extremely dangerous, he opined.

In his reaction, CPI(M) general secretary M. A. Baby said the Budget exposes the blind commitment of the Modi Government to a few big corporate houses at the expense of the working and toiling people, as well as the larger national interest.

The transfers to the States, he added, have plummeted by lakhs of crores in blatant subversion of fiscal federalism even as they are being squeezed through GST and by passing on the burden of expenditure on Central schemes.

Leader of the Opposition V D Satheesan said the BJP’s campaign during the local bodies elections was around the slogan of ‘Vikasita Keralam’. If this is the way they are planning to develop Kerala, then it amounts to a clear warning. A decision on the mineral wealth of Kerala should be taken only after consulting the State, he said, adding that the announcement in this regard can only be viewed with suspicion.

Kerala’s Education Minister V. Sivankutty strongly criticised the budget for completely ignoring the public education sector. He asked the Union Government to take a leaf out of Kerala’s book. His reference was to the slew of State Budget announcements such as insurance schemes for school children and extension of free education up to the degree level. (IPA Service)