The final full budget of the second Pinarayi Vijayan government, presented in the Kerala Legislative Assembly on Friday by State Finance Minister K.N. Balagopal, took sharp aim at newly elected US President Donald Trump and the Union Government.
Targeting Trump, Balagopal said, "The world is passing through a complex and uncertain phase. Democracy has crumbled in many regions, and governance has weakened. The rhetoric of autocracy and dictatorship has crossed all boundaries of political and social dignity.
He further said, "A man who boasts of the Panama Canal as his, talks of annexing Greenland, and tells us to evacuate Gaza to turn it into a tourist destination now leads the world's most powerful nation. Fear, hatred, and war mongering are on the rise. Many fear this marks a return to the dark times of world wars and colonial oppression. These global developments will inevitably impact our nation as well.
Balagopal underscored that Kerala needs to preserve its democratic and secular culture. "It is a moment of unity to hold on to the progressive ideology. A budget is not an economic document only. It shows political, cultural, and social features of people for whom it has been formulated. I feel that this budget will be the blue print of future development for Kerala," he added.
Turning his focus to the Central government, Balagopal attributed the state’s financial constraints to long-standing neglect by the Centre. He pointed out that Kerala’s share of central taxes has been steadily declining over the years.
This problem did not crop up overnight. The decline in the share of central taxes to the states, including Kerala, began nearly 25 years ago. During the tenure of the Tenth Finance Commission, Kerala's share was 3.88 per cent. This has gradually declined and it has reached an all-time low of 1.92 per cent under the Fifteenth Finance Commission," he said.
He also drew attention to the drastic reduction in grants provided to local self-governments. "While Kerala is at the forefront of decentralization, support from the Centre has dwindled. Local bodies got 4.54 per cent of the divisible pool during the Twelfth Finance Commission. This has reduced to 2.68 per cent under the Fifteenth Finance Commission," he pointed out.
It emphasized the mounting fiscal challenges of the state and contextualized the budget as a policy response and also a political statement against the economic policies of the Centre.
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