Kerala CM Blasts Union Budget 2023 for Overlooking States Needs

Thiruvananthapuram, Feb 1: Kerala Chief Minister Pinarayi Vijayan has strongly criticized the interim budget presented by Union Finance Minister Nirmala Sitharaman, alleging that it has neglected the state's interests and ignored its various development demands.

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Absence of New Announcements for Kerala

In a statement, Vijayan highlighted the absence of new announcements for crucial institutions like the All India Institute of Medical Sciences (AIIMS), new trains, and rail surveys. He also pointed out the lack of decisions on important projects such as the Angamaly-Sabarimala Sabari rail and track doubling.

Disregard for Kerala's Needs

Expressing his disappointment, Vijayan stated that none of Kerala's reasonable needs have been addressed in the budget. He emphasized that the central budget has been formulated in a manner that neglects the state's needs and interests.

Inadequate Support for Agriculture

The Chief Minister further criticized the budget for disregarding demands such as protection of domestic rubber cultivation through increased import duties. He also pointed out the lack of attention to Kerala's agriculture sectors, including paddy, coconut, and spices.

Concerns over Fiscal Approaches

Vijayan expressed concerns about the budget's fiscal approaches, stating that they exacerbate regional imbalances, undermine state interests, fuel inflation, and burden the people. He also highlighted the Centre's disregard for the demand to increase states' borrowing limits, resulting in a reduction in the amount of public credit available for states' capital expenditure.

Reduced Central Government Spending

The Chief Minister drew attention to the Revised Budget Estimates, which showed reduced spending by the central government in many areas compared to last year's allocations. These areas include agriculture, education, healthcare, social welfare, and development for marginalized communities. He also pointed out the reduced expenditures on fertilizers, food grains, and employment initiatives, suggesting a neglect of employment generation promises.

Disappointment and Pledge to Fight for State's Rights

Vijayan expressed disappointment that even in an election year, the needs of the common people of the country and Kerala were not considered in the central budget. He criticized the BJP government's approach towards the poor and pledged that the Left Democratic Front government would continue to fight for the rights of the state and its people.

Positive Response from Kerala Industry

In contrast to the Chief Minister's criticism, the budget evoked a positive response from the industry in Kerala. Dr. M. I. Sahadulla, Chairman of FICCI Kerala State Council, hailed the budget as a careful balance between the current investment rate and fiscal discipline.

Industry Praises Budget's Focus on Development

Sahadulla commended the government's commitment for housing development through Pradhan Mantri Awas Yojana, expanding and strengthening the EV ecosystem and domestic tourism, and the increased thrust on infrastructure development such as airports and railway corridors. He also welcomed the development of new airports and green energy sources, which he believes will propel India towards becoming a developed nation by 2047.

Support for MSME Sector and Tourism

Sahadulla expressed appreciation for the continued commitment from the government towards the MSME sector. He also welcomed the proposal for long-term interest-free loans for projects under the tourism sector in the states.

While Chief Minister Pinarayi Vijayan criticized the union budget for neglecting Kerala's interests, the industry in the state responded positively, highlighting its focus on development and support for key sectors.