If the Rail Budget meted out a raw deal to Kerala, the Union Budget’s approach to the State has been no less apathetic. None of the main demands contained in the State’s wish list have been conceded by Finance Minister P. Chidambaram.

Topping the list is Kerala’s long-standing demand for the establishment of an Indian Institute of Technology (IIT) to boost technical education. Prime Minister Manmohan Singh himself had raised expectations of the State high when he declared at the inauguration of the Emerging Kerala Investors’ meet held at Kochi a few months ago, that an IIT for the state was under ‘active consideration’. The Union Budget does not even make a mention of the dream project for Kerala. Non-implementation of the Prime Ministerial promise has only reinforced the prevalent perception in the state of continued neglect of its interests by the Centre. It has also blown sky high the oft-repeated contention of Kerala’s ministers in the Union Cabinet that same-party governments at the Centre and the State make for harmony, better cooperation and faster development.

Equally infuriating has been the deafening silence on the Vizhinjam port project. Expectedly, the step-motherly treatment of Kerala’s pet project has raised the hackles of the Left Democratic Front (LDF) leaders. Leader of the Opposition V S Achuthanandan has gone to the extent of accusing the UPA Government of a conspiracy to sabotage the Vizhinjam project by allocating Rs 250 crore to the Tuticorin port project in Tamil Nadu. Other opposition leaders and experts agree that a new outer harbour at Tuticorin will have an adverse effect on Vizhinjam.

Another big disappointment has been the failure to concede the State’s demand for an International Ayurveda Research Institute to fully exploit the state’s traditional ayurveda knowledge and expertise, and a separate Ministry for ayurveda. True an amount of Rs 1069 crore, set apart under Ayush, is expected to provide a boost to ayurveda. But it remains to be seen how the state can avail of this fund given the prevalent central norms which deny the State of the advantages of higher allocations for various sectors, including healthcare.

Nor is there any suggestion in the Budget which will help the state to effectively utilise the huge remittances the state receives from non-resident Keralites. The banks in Kerala boast an estimated Rs 62,000 crore, which are remaining idle at present.

Kerala is also dismayed at Chidambaram’s ‘unpardonable failure’ to address the most serious problem faced by the poor in the country due to steep rise in prices of essential commodities. Besides a passing mention of the need to strengthen the supply chain, the budget does not contain any proposal to tackle the problem, which should have received the highest priority of the government that swears by the aam aadmi day in day out.

The only redeeming features for the state are the allocations for the Kochi metro and the rejuvenation of coconut production in the state. Even in the case of Kochi metro, the Centre has been rather miserly in its allocation of funds: as against the state’s demand for Rs 294 crore, the FM has allocated only Rs 130 crore.

For the Coconut Development Board’s innovative scheme to revive coconut cultivation, the budget has earmarked a meagre Rs 75 crore, which the State has to share with the Lakshadweep. The Finance Minister was lavish in his praise for the Coconut Board’s flagship programme, but extremely stingy in releasing funds for the same! In view of the importance of the project for the state, he could have allocated at least Rs 200 crore for the project, which will now be extended to the entire state.

Nor has the Budget cared to firm up Kerala’s strength: its efficient public distribution system. That it has not bothered to do anything to strengthen it is utterly in sync with the Manmohan Singh Government’s policy of systematic neglect of the public sector. (IPA Service)