Budget 2026: BJP struggles to defend Kerala omission as CPI(M), Congress sharpen attack

The BJP had invited journalists to its state committee office in Thiruvananthapuram well ahead of the Union Budget presentation. Most of the party’s senior leaders were present, seated before television screens, watching Finance Minister Nirmala Sitharaman deliver her speech, much like an election result day, marked by anticipation and quiet confidence.

However, that mood did not last long.

Also read: Budget 2026 | The same old grouse: Kerala feels Left out

As the Budget speech unfolded and Kerala failed to figure in any major announcements, the atmosphere inside the BJP office visibly changed. By the time the Finance Minister concluded her speech, it was clear that Kerala had been left out of the Budget’s headline projects, leaving the BJP’s state leadership on the defensive.

Defensive mode

Facing sharp criticism from the ruling Left Democratic Front (LDF) and the Congress-led United Democratic Front (UDF), the BJP quickly attempted to shift responsibility onto the state government.

Addressing reporters after the Budget, BJP state president Rajeev Chandrasekhar said the Narendra Modi government had transformed India from a weak economy into the world’s fourth-largest economy, and that the Budget reflected medium and long-term strategic thinking rather than short-term populism.

Kerala expected an ocean of hope. What it got was a turtle

He alleged that the Centre had announced several projects for Kerala over the past 11 Budgets, but that the Left government had failed to implement them. Citing flagship schemes such as the Pradhan Mantri Awas Yojana, Jal Jeevan Mission, and Ayushman Bharat, Chandrasekhar argued that the state government should answer questions about the implementation of these projects before accusing the Centre of neglect.

AIIMS project

“In 2017, it was said that AIIMS would be allotted either to Madurai or Kerala, but land acquisition was not completed,” Chandrasekhar said. He added that the state government could not continue alleging discrimination without addressing its own failures.

However, state Health Minister Veena George rejected the BJP’s claims on AIIMS, saying Kerala had repeatedly fulfilled all the requirements communicated by the Centre. She said suitable land had been identified and made available, and she accused the Union government of shifting the goalposts.

Also read: Kerala Budget prioritises welfare as LDF govt banks on continuity

George pointed out that several states had received AIIMS despite facing land-related challenges, and said Kerala was being singled out unfairly. She maintained that the state had submitted all the necessary documents and proposals, and that the Centre’s continued refusal to sanction an AIIMS could not be blamed on administrative lapses by the state government.

“The Centre cannot keep finding excuses after years of discussions and submissions,” she said, adding that the Budget once again exposed the Centre’s unwillingness to address Kerala’s healthcare infrastructure needs.

Rail project debate

The Budget’s silence on rail connectivity has emerged as one of its most politically-damaging aspects in Kerala. While seven high-speed rail corridors were announced across India and branded as “growth connectors”, Kerala was entirely absent from the list, even as neighbouring Tamil Nadu and Karnataka gained multiple links.

Also read: Why a high-speed rail network could lead to Kerala-Centre flashpoint

The omission comes amid prolonged uncertainty over rail development in the state. Kerala’s proposal for a semi-high-speed Regional Rapid Transit System (RRTS) remains stalled, awaiting Union approval. At the same time, public claims by veteran engineer E Sreedharan regarding a proposed Thiruvananthapuram–Kannur high-speed rail project have not been backed by any official communication from the Centre.

On Budget day, BJP leaders were unable to clarify whether Kerala would be included in future high-speed rail plans, further weakening their defence.

Opposition slams Centre

Leader of the Opposition VD Satheesan described the Budget as politically motivated and discriminatory towards Kerala. He said the BJP’s Kerala leadership had failed to secure even a single major project for the state, despite repeatedly claiming proximity to the Centre.

Satheesan argued that the Centre was systematically denying Kerala its rightful share of national resources, and accused the BJP of acting as a silent spectator.

“This Budget confirms that Kerala has no voice in Delhi under the BJP,” he said, adding that blaming the state government was an attempt to divert attention from the Centre’s own decisions.

Also read: What does each state get from Budget 2026-27?

He also pointed out that the Budget announced new institutions and infrastructure projects for other states while Kerala’s long-standing demands were ignored.

“Kerala expected an ocean of hope. What it got was a turtle,” said Dr TM Thomas Issac, former finance minister, sarcastically referring to the budgetary announcement of ocean turtle conservation project.

"Everyone except BJP leaders has already protested against the neglect of Kerala. It was claimed that once the BJP captured the Thiruvananthapuram Corporation, it would bring major development. Leave Thiruvananthapuram aside, there is not even a mention of Vizhinjam. There is no high-speed rail either. The only reference to Kerala is in connection with the rare earth corridor, and that raises more anxiety than happiness," said Issac.

BJP's credibility problem in Kerala

For the BJP in Kerala, the Budget has reopened a familiar credibility problem. While the party governs at the Centre, it has little to show in terms of tangible gains for the state. Each Budget that fails to deliver visible projects strengthens the opposition’s argument that the BJP lacks either influence or intent when it comes to Kerala.

It was also expected that Prime Minister Narendra Modi would make at least one Kerala-specific announcement during his visit to Thiruvananthapuram last month, especially after the BJP’s much-touted victory in the city corporation elections. Party leaders had projected the visit as a signal of the Centre’s recognition of the BJP’s growing presence in the state. However, no new project or financial commitment was announced.

Also read: 'Lacklustre', 'visionless', 'blind' to India’s 'real crises' — How Opposition sees Budget 2026-27

With the Union Budget also offering little to Kerala, the BJP’s response has shifted to reiterating the need for a “double-engine government”, a line repeated by state president Rajeev Chandrasekhar. This too has attracted criticism, with the Left and the Congress asking why Kerala should be asked to vote for future promises when even symbolic political gains and a prime ministerial visit failed to translate into tangible outcomes.

Inside the BJP state office, the post-Budget mood reflected this dilemma. Leaders leaned heavily on national economic indicators and long-term visions, while avoiding detailed answers on Kerala-specific omissions.

As journalists dispersed and television screens were switched off, the contrast with the morning’s anticipation was stark. The Budget may have been framed in Delhi as a roadmap for national growth, but in Kerala it has left the BJP firmly on the backfoot - struggling to defend a document that, for many in the state, offered a turtle where an ocean of hope was expected.