Total Disappointment for Kerala: Congress' KC Venugopal Slams Budget

Congress General Secretary KC Venugopal on Sunday launched a sharp attack on the Union Budget 2026–27, describing it as a “total disappointment for Kerala” and alleging that it prioritises large corporates while ignoring the needs of ordinary citizens.

Reacting to the budget, Venugopal questioned the Centre over the absence of any Kerala-specific initiatives, particularly the long-standing promise to establish an All India Institute of Medical Sciences (AIIMS) in the state. He said that despite assurances made over the past decade, the latest budget does not refer to setting up an AIIMS in Kerala.

Venugopal also criticised the broader intent of the budget, claiming it fails to address the concerns of the common people. He argued that the proposals offer little relief to citizens and instead cater to corporate interests, terming the budget “hollow” and devoid of meaningful substance.

Earlier in the day, the Congress leader reiterated his criticism on social media, calling the budget a “listless, heartless” exercise by what he described as a “clueless government”. He alleged that the current budget continues a pattern that began in the previous session with cuts to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and accused the Centre of implementing large-scale reductions in welfare spending under the pretext of fiscal discipline.

Venugopal highlighted unemployment, declining living standards and mounting financial pressure on the middle class as key issues left unaddressed. He said quality of life in the country has been steadily deteriorating, unemployment is at record levels, and the middle class is struggling amid market volatility, while welfare protections are being steadily eroded.

Focusing on Kerala, Venugopal claimed the state has once again been subjected to “step-motherly treatment”. He pointed out that the promised AIIMS was omitted from the budget and noted that no city in Kerala has been included in the proposed high-speed rail corridor. He concluded that the budget benefits only a select few, leaving ordinary Indians to grapple with rising prices, job losses, deteriorating infrastructure and an uncertain future.

Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in the Lok Sabha on Sunday, marking her ninth consecutive budget. During her speech, she announced that the Centre has allocated ₹1.4 lakh crore to states for the financial year 2026–27 as Finance Commission grants.

Sitharaman said the government has accepted the 16th Finance Commission’s recommendation to retain the vertical share of tax devolution to states at 41 per cent. The allocation includes grants for rural and urban local bodies as well as disaster management. The 15th Finance Commission had earlier recommended a 41 per cent share for states, which has now been upheld by the 16th Finance Commission.