LDF MLAs walk out of Kerala Assembly, accuse CM of misleading House on fund cuts

Thiruvananthapuram,UPDATED: Jul 1, 2026 15:07 IST

A heated exchange broke out in the Kerala Assembly on Wednesday over a cut in plan fund allocations to local self-government institutions, with the opposition LDF accusing Chief Minister V D Satheesan of "misleading" the House. The debate began after CPI member G R Anil moved an adjournment motion, saying the reduction had badly affected the functioning of local bodies.

The matter ended in a walkout by the Opposition after the Speaker disallowed the adjournment motion on the basis of the Chief Minister's reply. During the discussion, the treasury and opposition benches traded charges over the reasons for the cut and the handling of funds by the previous government.

Replying to the motion, Satheesan said the House had been told on several occasions that plan fund allocations to local bodies had to be reduced by Rs 1,533.55 crore because of the state's financial constraints. He said the crisis stemmed from the budgeting and planning of the previous LDF government. According to him, the earlier government had included projects worth around Rs 35,000 crore in the Budget despite knowing that only around Rs 20,000 crore would be available, making proportional cuts across departments unavoidable.

Targeting the Opposition, the Chief Minister said Anil's criticism was effectively an indictment of the previous LDF government's Budget. He also alleged that the earlier government had failed to release the third instalment of funds earmarked in its final Budget, which he said was due in December, citing the Assembly elections.

"The reduction of Rs 1,533 crore became unavoidable because of the flaws in your Budget and planning. You are criticising us for that decision," he said. He added that the government had already informed the Assembly and the public about the state's financial position and claimed that the present UDF government had released more funds than had been provided for in the previous Budget.

Satheesan also said had the previous government's Budget been implemented as it was, the cut in plan funds would have reached 57 per cent. "When you point one finger at the government, four fingers point back at you," he remarked.

Leader of the Opposition Pinarayi Vijayan rejected the Chief Minister's arguments and accused him of "misleading" the Assembly. Calling Satheesan's stand "unfortunate", Vijayan asked him to correct his position and rejected the claim that there had been no spillover of projects during the previous LDF government's tenure. He said the third instalment of funds, which the Chief Minister said should have been released in December, was actually scheduled for March but could not be disbursed because the Election Commission did not grant permission after the Model Code of Conduct came into force ahead of the Assembly elections.

Vijayan said the state currently had around Rs 6,000 crore as an unspent balance and that releasing this amount to local bodies would provide major relief. He also argued that successive LDF governments had consistently spent more than the Budget allocation on local body projects.

According to him, expenditure was 94 per cent during 2011-16, 102 per cent during 2016-21, and 135 per cent during 2021-26, with the balance carried forward as spillover projects. After the Chief Minister's reply, the Speaker disallowed the adjournment motion, prompting the Opposition to walk out of the House.

- Ends

With PTI inputs