Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Monday staged a high-profile protest against the BJP-led Union government, accusing it of deliberately withholding ₹5,900 crore due to the state over the last three months of the current financial year. He described the alleged financial blockade as an attack on Kerala’s welfare achievements and called for public support to protect the state’s federal and secular rights.
The demonstration, held at the Martyrs Memorial in Thiruvananthapuram, was a day-long “satyagraha” organised by the Left Democratic Front (LDF) government. The event was attended by all state ministers, MLAs, MPs, and leaders of the LDF coalition. This protest mirrors a similar action Vijayan led in Delhi in February 2024 over the same issue.
Allegations of Financial Squeeze
Vijayan termed the state’s fight as a “battle for survival”, asserting that the Union government was using financial power to undermine Kerala’s welfare programs. He alleged that the Centre’s refusal to release funds for various schemes was aimed at disrupting health, education, and social development programs, and making life harder for farmers and the economically vulnerable.
“The latest cut by the Union government is more than half of the amount Kerala was due to receive in the last three months of the current financial year. We were expecting ₹12,000 crore for this period. Out of this, ₹5,900 crore has been denied without any justification,” Vijayan said. He highlighted pending central scheme arrears up to September 2025, amounting to ₹5,783.69 crore, which include:
- National Health Mission (NHM): ₹636.88 crore
- University Grants Commission (UGC) grants: ₹750.93 crore
- Samagra Shiksha Abhiyan (SSA): ₹1,148.13 crore
- Jal Jeevan Mission: ₹974.68 crore
Vijayan also criticised the Union government’s centralising tendencies, noting that excessive powers at the federal level continue to stifle states. “Bills passed by state legislatures are being held up indefinitely. Undemocratic measures interfering in state matters persist,” he said. He added that Kerala has approached the Supreme Court on related issues, underscoring the legal dimension of the dispute.
Alleged Discriminatory Practices
The Chief Minister further alleged that the BJP-led Union government favors states under its governance with discretionary grants while imposing financial blockades on others. He cited previous instances of alleged financial obstruction during natural disasters, including the 2018 Kerala floods and the 2024 Wayanad landslides, where state relief efforts were allegedly hindered due to withheld funds.
Vijayan also criticised the opposition, particularly the Congress and the United Democratic Front (UDF), for their inaction. “The opposition has narrow political interests. They exploit the state’s economic constraints for their own gains while spreading false propaganda that the crisis is due to wasteful governance. The 2023-24 C&AG report clearly states that 56.29% of borrowing was used for capital expenditure,” he noted.
BJP Response
State BJP chief Rajeev Chandrasekhar countered Vijayan’s claims, suggesting that the protests were politically motivated and timed after the LDF’s setbacks in recent local body elections. Chandrasekhar pointed out that the Narendra Modi-led government had transferred ₹3.2 lakh crore to Kerala between 2014-25, in contrast to ₹72,000 crore under the previous UPA government.
“When the UPA was in power, Pinarayi Vijayan never protested. Why complain now after receiving four times more funds?” he asked, framing the LDF’s protest as opportunistic.
UDF Stance
Leader of the Opposition VD Satheesan dismissed the possibility of the UDF joining the LDF protest, highlighting political differences. “Outside, they (LDF) hold protests to show action, but inside, they comply with the Centre’s directives. The recent signing and withdrawal from the PM-Shri MoU is proof. We will be shamed if we hold protests with the LDF,” Satheesan said, emphasising the partisan nature of state-level politics.
Implications for Kerala
Kerala’s LDF government has consistently raised concerns over delayed or withheld funds from the Union government, arguing that financial autonomy is crucial for maintaining welfare schemes in health, education, and social infrastructure. With the state’s budget stretched, delays in central fund releases can disrupt scheme implementation, particularly those targeting farmers, women, and low-income groups.
The ongoing satyagraha reflects Kerala’s longstanding tussle with the Centre over fiscal federalism. By drawing public attention to the alleged withholding of funds, the state government aims to pressure the Union administration into releasing the pending amounts while reinforcing its image as a protector of state welfare and federal rights.
Kerala’s confrontation with the Union government also underscores the broader debate on centre-state financial relations in India, including the allocation of GST, disaster relief funds, and centrally sponsored schemes. States argue that delays in fund disbursement not only affect public services but also strain their ability to plan and execute development programs effectively.
LDF’s Call for Public Support
Through the satyagraha, Vijayan urged citizens to rise in public opinion against the Union government’s actions, portraying the financial blockade as an attack on Kerala’s achievements and autonomy. The demonstration highlighted the LDF’s strategy to mobilise grassroots support, especially among communities directly impacted by welfare schemes, to amplify pressure on the central government.
The protest also sends a political message ahead of upcoming state and local elections, reinforcing the narrative that the Union government’s actions are politically selective and undermine non-BJP states.
Summary
- Event: LDF satyagraha in Thiruvananthapuram
- Reason: Alleged withholding of ₹5,900 crore by the Union government
- Chief Minister’s claim: Funds withheld to disrupt welfare schemes in health, education, and social sectors
- Opposition response: BJP dismisses allegations; UDF refuses to join the protest
- Historical context: Similar protests held by Vijayan in February 2024; allegations of fund blockage during 2018 floods and 2024 landslides
- Central issue: Fiscal federalism and centre-state financial relations
The LDF-led demonstration marks the latest episode in Kerala’s ongoing financial and political confrontation with the Centre, highlighting challenges in India’s federal structure and the delicate balance of fiscal powers between the Union and state governments.


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