Opposition parties in Kerala have launched a fierce attack on the ruling LDF government following the presentation of the state's 77th budget. On January 29, 2026, the Leader of the Opposition, V D Satheesan, accused the government of turning a constitutional financial statement into a political document filled with misleading promises. This budget, according to Satheesan, lacks credibility and reflects a decade-long failure of the Left front in governance.
Satheesan pointed out that the actual status of plan implementation is dismal, with expenditure reaching only 38% by January 2026. As elections are likely to be declared by March, there is insufficient time for the government to utilize the remaining funds effectively. The opposition's critique raises significant concerns about the fiscal credibility of the state, particularly regarding the overstated revenue growth that compares current figures with those from the pandemic period.
- Unpaid employee dues — Six installments of Dearness Allowance for public servants remain pending, totaling ₹1 lakh crore.
- Social security failures — The government has not raised pensions to promised levels, impacting vulnerable populations.
- Inflation concerns — Kerala reportedly has the highest inflation rate in the country, further complicating the economic situation.
Critics have also highlighted the rising debt levels in the state, which have reportedly reached several lakh crore rupees, while tax revenue growth remains below 10%, far from the targeted 30%. The Indian Union Muslim League (IUML) has joined the chorus of dissent, with leader P K Kunhalikutty stating that the budget clearly reflects the government's failure to manage finances. The opposition demands a white paper on the state's finances and a thorough performance audit to restore public trust.
Finance Minister K N Balagopal has faced criticism for his remarks referring to a new normal in the budget, which Satheesan interpreted as a pattern of making announcements without implementation. As the political landscape heats up ahead of the elections, the UDF has asserted that they will present and implement the 2026-27 budget, claiming that the current administration has significantly undermined the state's financial health.
