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State Budget 2026-2027: general discussion begins in the Assembly

February 3, 2026

A protest against the alleged neglect in Kerala’s Union Budget by Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) in the Kerala Assembly on Monday (February 1, 2026) echoed a wave of members of the ruling Left Democratic Front criticizing the Union government for short-circuiting the state.

Their criticism came during the general debate on the state budget for 2026-2027, presented by Finance Minister KN Balagopal on January 29, which began in the assembly at a time of boycott by the opposition United Democratic Front over alleged irregularities in granting parole to convicts and rejection of a motion to adjourn the debate on the matter.

The LDF members said that the Union budget neglected all the major demands of the state. In boycotting the assembly, the opposition UDF is supporting the BJP, they alleged. CPI(M)’s Kadakampally Surendran said that instead of high-speed rail, Kerala has seen “high-speed neglect”.

While designing the dedicated rare earth corridor, Kerala intended to set up joint ventures in the state in the public sector. However, there are suspicions that the rare earth corridor project announced in the Union Budget is meant to help private players monopolize the sector, Mr. Surendran said.

Regarding the state budget presented by Mr. Balagopal, LDF members described it as an endorsement of the ‘Navakeralam’ concept. Deputy Speaker Chittayam Gopakumar urged Mr. Balagopal to announce measures to legalize Saksharath Preraksa. He also wanted the House to pass a resolution to ensure minimum wages for ASHA workers. KA Ansalan of the CPI(M) sought continued support for the development of the fishing harbor at Vizhinjam and the Karamana-Kalayikkavila NH section.

The general debate on the state budget will continue on Tuesday and Wednesday.

Published – 02 Feb 2026 20:13 IST

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