Speaking to reporters shortly after the Budget presentation, Congress MPs Shashi Tharoor and KC Venugopal questioned why Kerala did not feature prominently in the allocations.

New Delhi: Congress MP Shashi Tharoor on Sunday voiced concern that Kerala did not feature prominently in Finance Minister Nirmala Sitharaman’s Union Budget 2026–27.
Speaking to reporters shortly after the Budget presentation, Tharoor said the speech contained only “three or four headlines” and lacked specific references to Kerala. “We were waiting for the All-India Institute of Ayurveda. Where is it? We wanted this in Kerala. But we didn't hear the name of Kerala, which has a long tradition of Ayurveda,” he remarked. He also pointed out that while Varanasi and Patna were highlighted for ship repair initiatives, Kerala — despite being the country’s largest coconut producer and a key fisheries hub — received no mention.
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Congress leader KC Venugopal echoed the criticism, arguing that despite Kerala’s contributions to tourism, aviation and healthcare, the Budget offered no concrete allocations for the state. “This budget is a total disappointment for Kerala. For the last 10 years, promises have been made about AIIMS for Kerala, but there is no mention of it in this budget,” said the Alappuzha MP. He further claimed the announcements, including mineral corridors, appeared targeted elsewhere, adding, “This budget is not for the common people; it is for big corporates.”
Coconut Promotion Scheme and cashew, cocoa support announced
In her Budget speech, Sitharaman unveiled a Coconut Promotion Scheme aimed at major coconut-growing states, with measures such as replacing non-productive trees with high-yielding saplings. She also announced programmes for cashew and cocoa to make India self-reliant in raw production and processing, alongside initiatives to revive the sandalwood ecosystem through targeted cultivation and post-harvest support.
Kerala was also included in plans to establish turtle trails along key nesting sites in coastal areas, and in proposals to develop ecologically sustainable mountain and birdwatching trails. Podhigai Malai in the Western Ghats, which spans Tamil Nadu and Kerala, was named among the sites, along with Arakku Valley in Andhra Pradesh.
Rare earth corridors planned for Kerala and other mineral-rich states
The Finance Minister further proposed dedicated rare earth corridors in Kerala, Odisha, Andhra Pradesh and Tamil Nadu to reduce dependence on imports and strengthen domestic capabilities in critical minerals. She said the Centre would support mineral-rich states in mining, processing, research and manufacturing of rare earth elements and permanent magnets.
Earlier in the day, Tharoor had flagged unemployment as a pressing issue, warning that “jobless growth does not help anyone.” He said young people were eager to see whether economic growth would translate into jobs, particularly with elections approaching in Kerala.
Both Kerala and Tamil Nadu are scheduled to hold Assembly elections later this year.
Published: 01 Feb 2026, 03:51 pm IST
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