Looking back at the first three months of the Congress-led United Democratic Front (UDF) government in Keralam, what becomes evident is a mixed bag of results for Chief Minister V.D. Satheesan.
After the swearing-in ceremony on May 18, 2026, it has been an eventful three months for 62-year-old Mr. Satheesan and his 20 Ministers – there have been hits and misses with the big plans. Many have been the challenges – some of them startling, such as a pesky monsoon-season electricity crisis – and controversies that cropped up on the path of the new government that came to power in a landslide 102-seat victory in the Assembly elections.
From the word go, Mr. Satheesan has tried his best to convince the State that his government meant business in building a ‘Puthuyuga Keralam’ (new-age Keralam). He himself has taken care to keep up the persona of a firm but smiling and affable leader, briefly attracting the viral Gen-Z moniker of ‘Pookie CM’ in contrast with the stern, unsmiling taciturnity that his predecessor, the CPI(M) veteran Pinarayi Vijayan, has often been accused of.
With its election manifesto promises and a ‘Vision 2031’ strategic framework that featured 1,291 schemes across government departments, the UDF government had set itself ambitious yet tough goals. ‘Tough’ in the sense that Keralam is not sitting pretty on the fiscal front, although the 16th Union Finance Finance Commission awards increased its divisible tax pool share from 1.92% to 2.38%. The government has also set a 100-Day Action Plan starting July 1, spanning 602 projects across 50 departments.
In the very first weeks, the UDF government scored hits with sections of the people with the ‘Indira Guarantee’ announcement of making bus travel free for women in the ‘Ordinary’ services of the Kerala State Road Transport Corporation (KSRTC) and scrapping the SilverLine semi high-speed rail project, a dream project of the previous CPI(M)-led Left Democratic Front (LDF) government. While the ‘Priyadarshini’ free travel scheme did not sit well with private bus operators, it did score brownie points for the government with the women, despite the ‘ordinary’ services not being uniform across districts. The semi-high-speed rail initiative, while ambitious in scale, had invited the wrath of large sections over the allegedly unilateral and unscientific manner in which the alignment was drawn up.
A dedicated Department for Elderly Welfare, which Mr. Satheesan described as the first of its kind in the country, also featured among the very first decisions of the UDF government. It was in line with the plans to develop a ‘Kerala silver economy’ for the ageing State. ‘Operation Toofan,’ helmed by Home Minister and senior Congress leader Ramesh Chennithala for tackling a growing narcotics problem, also has drawn positive reviews for the government.
On the other hand, a major disappointment for Mr. Satheesan was the Centre’s denial of clearance for its ‘Port City’ project, citing the absence of a feasibility study or a Detailed Project Report. In his Revised Budget for the 2026-27 fiscal, Mr. Satheesan had envisioned Kerala as a cohesive ‘Port City’ under Mission Samudra for transforming the State into a thriving maritime economy. Despite this, Mr. Satheesan formally launched Mission on August 18, which along with plans for developing Keralam into a “premier aviation-logistics hub” and Rare Earth and Critical Minerals Corridor, had featured high on the Revised Budget.
Controversies galore
The UDF government’s approach to a variety of issues have attracted controversies, providing fodder for the CPI(M)-led LDF which has been in regroup mode after the electoral debacle in May where it was pushed back to just 35 of the 140 Assembly seats. Mr. Satheesan, who described himself as a “Nehruvian socialist,” drew criticism for trying to launch a privatisation spree of the public sector over his budget announcement on attracting ‘private investment.’ Other controversies included the government’s stance on the Pradhan Mantri Schools for Rising India (PM SHRI) – a Central scheme for which the previous Pinarayi Vijayan-led LDF government had controversially signed up but then claimed to have “frozen” – and the appointment of the non-Muslim members to the State Waqf Board. If in the initial days the government had had to field questions about the delay in finalising ministerial portfolios, in the later weeks the criticism had shifted direction to the appointment of personal staff of the Ministers. Members of the personal staff of Electricity Minister Sunny Joseph and Health Minister K. Muraleedharan quit amid speculations over nepotism and internal power struggles. The appointment of government pleaders also exposed the differences within the Congress and the UDF, even as Mr. Satheesan claimed that the appointees were carefully vetted for efficiency. Several appointments, including that of the State Election Commissioner, drew flak for being favourable to the Sangh Parivar and in some cases, the CPI(M).
The Adani Group’s decision to sell 49% stake in the Adani Vizhinjam Port Private Limited to Terminal Investment Limited (TiL), the terminal-operating arm of Switzerland-based Mediterranean Shipping Company (MSC) also saw the UDF and Opposition LDF trading charges. The Enforcement Directorate (ED) raids at the residence of Pinarayi Vijayan, the former Chief Minister and the present Leader of Opposition – as part of a robe into the financial transactions related to his daughter’s now-defunct firm Exalogic Solutions – the Sabarimala gold theft case, and the investigations into the alleged exam scams related to the Kerala Public Service Commission also have kept newsrooms busy. A probe into the attack by the security detail of then CM Pinarayi Vijayan against Youth Congress workers in Alappuzha made headlines, with an ADGP, who was seen as being close to Mr. Vijayan, being placed under suspension for his alleged involvement in interfereing with the inquiry.
White paper on Keralam’s fiscal health
On the fiscal front, the picture is not a rosy one, according to Mr. Satheesan. One of his first decisions had been to commission a White Paper on the State’s fiscal health. Drafted by a three-member panel headed by former Union Cabinet Secretary K.M. Chandrasekhar, the document was laid in the Assembly on June 4. It painted a grim picture of State finances, placing the State’s liabilities at ₹5.07 lakh crore and observing that “behind Kerala’s social achievements lies a fiscal structure that is under serious and growing strain.”
The UDF government’s Revised Budget has slashed the plan outlay for 2026-27 by ₹5000 crore from ₹35,750 crore to ₹30,370 crore, citing a “significant shortfall in anticipated revenue” estimated by the previous LDF government for the fiscal. Further, the UDF government has also taken the radical decision to restructure the Kerala Infrastructure Investment Fund Board (KIIFB), which the 10-year-long LDF rule had transformed into a financial behemoth for funding infrastructure projects. KIIFB had drawn the ire of the Union government and the Comptroller and Auditor General for its ‘off-budget’ borrowings, and Mr. Satheesan had been a vocal critic ever since his days as Opposition Leader. Now, the UDF government has appointed a high-profile panel headed by former bureaucrat Sudha Pillai to examine how KIIFB can be revamped.
The UDF government’s relations with the BJP-led Union government appears to be an evolving one, and one that is keenly watched given the previous LDF government’s open attacks on the Centre on issues such as cooperative federalism and the State’s fiscal space. The policy address made to the Assembly in May had asserted the UDF government’s ‘strong belief’ in “cooperative federalism and constructive engagement with the Union government while firmly safeguarding the constitutional and financial rights of Kerala.” At the same time, the State government has already had run-ins with the Lok Bhavan and Governor Rajendra Vishwanath Arlekar. The ‘Vande Mataram’ itself has been in focus on two occasions; one, because it was played in full at the swearing-in ceremony of the UDF government, and, two, because it was not played at the State-level Independence Day celebrations.
Govt-Governor relations
At the time of filing this report, the UDF government is battling accusations levelled by the CPI(M) over whether it has ceded its executive powers to the Lok Bhavan and a row over the removal of news posts allegedly critical of the government from social media platforms managed by Meta. In the first case, the CPI(M) allegation had erupted over the Governor’s decision to summon the State Police Chief without informing the government.
Mr. Satheesan later announced that his government had conveyed its strong objections to the Lok Bhavan over the incident, adding that the Governor had issued such summons to department heads during LDF rule as well. In the second case, Meta’s removal of several posts as well as news reports critical of Mr. Satheesan and the Congress had sparked the controversy. Mr. Satheesan has been quick to deny that the removals were based on any request made by either his government or the State police department, adding that posts favourable to him too had been removed.
Published – August 19, 2026 12:18 pm IST
