In a resolution passed on Wednesday (February 4, 2026), the Kerala Assembly slammed the Centre for its “continuing neglect of Kerala,” a situation which, it said, was reflected ever more strongly in the Union Budget 2026-27.
The resolution sought the Centre’s urgent attention to demands made by Kerala, including an All India Institute of Medical Sciences (AIIMS) and approval for a high-speed rail corridor that were “ignored” in the Union Budget.
The House adopted the resolution in the absence of the Congress-led Opposition UDF, which had boycotted the Assembly proceedings earlier in the morning over the Sabarimala gold theft issue.
Opposition not informed: Satheesan
Speaking to the media outside the Assembly, Leader of the Opposition V.D. Satheesan said the government had not informed the Opposition about the resolution. The matter was neither discussed in the Business Advisory Committee of the House nor was the Opposition informed about it through the Minister handling Parliamentary Affairs, he said.
The resolution, presented by Chief Minister Pinarayi Vijayan just days after Union Finance Minister Nirmala Sitharaman tabled the Union Budget in Parliament, strongly urged the Centre to “correct its approach to Kerala and ensure justice to the State, respecting the spirit of cooperative federalism and the need for the balanced development of the nation.”
Mr. Vijayan presented the resolution in accordance with Rule 118 of the Rules of Procedure and Conduct of Business in the Kerala Assembly which deals with government resolutions.
“The general development of the nation hinges on the balanced development of all its regions. The ruination of one part may lead to a general enervation. That is the reason why the Constitution opted for an approach that looked beyond regional differences. But the latest Union Budget upsets this policy much more than in the previous years,” the resolution said.
It goes on to add that “the continuing neglect of Kerala, a State that has made commendable progress through a globally-acknowledged development paradigm, is an insult” to the democratic federal principle. That the Union government has been paying scant regard to its just demands has been a matter of utmost dismay to Kerala society, it added.
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Demanding urgent approval for an AIIMS, the resolution pointed out that Kerala has been seeking one for more than two decades. Although the State government had identified the land and initiated measures to secure it, no action has been forthcoming from the part of the Union government, it said.
The Union Budget has also ignored the State’s repeated demands for a high-speed rail corridor. Such a corridor would considerably reduce the time taken to travel the 573-km north-south distance of the State – which now consumes almost 13 hours – thereby adding pace to the State’s progress. “Whatever be the technical model, a high-speed rail system is an imperative for the State,” it said.
Other demands
The Centre has also ignored other demands made by the State, including a coach factory, condition-free viability gap funding for the Vizhinjam seaport project, point of call facility for the Kannur international airport and support for the landslide-affected families in Wayanad district, the resolution said.
Replacing the Mahatma Gandhi National Rural Employment Guarantee framework with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) had reduced the Central assistance for the employment guarantee scheme. On top of this, the outlay for it has been reduced from ₹88,000 crore to ₹30,000 crore in the Union Budget. This reduction will have serious consequences for Kerala, it said.
The resolution also reiterated the State’s grievances with respect to Central fiscal policies and the curbs placed on its borrowing space. Further, it pointed out that the 16th Finance Commission decision not to allow Revenue Deficit Grants to States would deprive Kerala of ₹53,000 crore which it received under the 15th Finance Commission award period. “The Union government is imposing an economic blockade on Kerala, a State that seeks to move ahead by giving equal importance to infrastructure development and welfare measures,” it said.
The resolution accused the Centre of subjecting Kerala to “discrimination and neglect, shrinking its economic resources,” withholding Central shares of Centrally sponsored schemes and ignoring the infrastructure development of the State.
“The nation is capable of holding its head high in front of the global community only when all its States are secure, developed and prosperous. No nation can stand tall with pride by weakening its States,” the document said.
Published – February 04, 2026 11:51 am IST
