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Leader of the Opposition VD Satheesan on Thursday, January 29 launched a scathing attack on the Kerala Budget presented by Finance Minister KN Balagopal, alleging that the State’s fiscal credibility had been “completely destroyed” and that the LDF government was merely shifting its financial burden to the next dispensation.
Echoing the criticism, Indian Union Muslim League (IUML) leader PK Kunhalikutty termed the document "the best budget of a failed government."
Balagopal, on Thursday, presented his sixth consecutive budget of the LDF government, opting for a full budget despite Assembly elections scheduled later this year, when conventionally a vote-on-account is presented. The budget places strong emphasis on social security, healthcare, education and inclusive welfare, with a series of announcements targeting students, workers and vulnerable sections.
Addressing the media, Satheesan pointed out that for the past five months, the treasury has imposed restrictions preventing withdrawals of more than Rs 10 lakh, highlighting what he described as a severe cash crunch. He dismissed the government’s claim of ushering in a "new normal" as mere rhetoric, accusing the LDF of making announcements without the financial capacity to implement them.
Referring to social security pensions, the Opposition leader said the LDF came to power in 2021 promising to raise pensions from Rs 1,600, but delivered only a Rs 400 hike, that too on the eve of the December local body elections. He alleged that Kerala is currently facing the highest inflation in the country, attributing it to the government’s inability to intervene in the market due to a lack of funds.
Satheesan also criticised the government’s handling of employee welfare, noting that despite a pay revision being due in 2024, the government failed to appoint a Pay Commission on time. Instead, he alleged, the LDF has announced new measures despite being uncertain of returning to power, thereby transferring the financial liability to the next government.
Claiming that dearness allowance arrears alone amount to nearly Rs 1 lakh crore, Satheesan said the burden would fall on the government assuming office in May. A new government is expected to take office by the third week of May.
He further criticised the government’s failure to support rubber farmers, pointing out that benchmark prices had risen by only Rs 50 over the past decade.
Questioning the relevance of the budget itself, Satheesan said it would not be implemented as a Congress-led UDF government would present the next budget after coming to power. He also alleged that the plan size was cut by 50 per cent in the previous fiscal year and that only 38 per cent of the plan allocation has been utilised so far in the current fiscal.
The Opposition leader demanded a performance audit of the previous budget and called for the publication of a white paper on the State's finances.