Senior CPI(M) leader and former State Finance Minister, Thomas Isaac. File
| Photo Credit: Nirmal Harindran
As Kerala Chief Minister V.D. Satheesan is set to present the Revised Budget — his first — on Friday (June 19, 2026), senior CPI(M) leader and former Finance Minister T.M. Thomas Isaac said he was keen to know what Mr. Satheesan intended to do to mobilise additional revenue.
In a Facebook post, Mr. Isaac — who was Finance Minister in the 2016-2021 LDF Ministry — said he was interested in how the Congress Chief Minister intended to bridge the ₹20,000 crore shortfall in the amount projected as Central transfers in the Budget estimates passed by the Assembly in January this year.
The Budget estimates had anticipated transfers of approximately ₹20,500 crore, higher than what the 16th Finance Commission eventually provided for Kerala. The estimates were based on assumptions regarding continuing revenue deficit grants which the Commission has not allowed for States.
The CPI(M)-led LDF government had presented the Budget for the 2026-27 fiscal ahead of the Union Budget. Once the latter was passed, it was clear that Kerala will not receive this amount, Mr. Isaac said.
Mr. Isaac said he was surprised that although the State Budget was discussed and passed after the Union Budget, there had been no serious discussion on the shortfall either in the Assembly or the press.
Mr. Isaac said he would keenly watch the Budget to see whether it plans to raise more tax revenue from gold sales and claim Kerala’s rightful share of the Integrated Goods and Service Tax (IGST).
Also, if the Budget does not earmark funds for paying the bills of works undertaken through the Kerala Infrastructure Investment Fund Board (KIIFB), those works will stall, Mr. Isaac said.
Published – June 19, 2026 09:29 am IST
