Kerala CM Leads Satyagraha Alleging Centre’s ‘Anti-People’ Policies and Federal Overreach
Thiruvananthapuram | January 12, 2026
Kerala Chief Minister Pinarayi Vijayan on Monday led a state-wide satyagraha to protest what the Left Democratic Front (LDF) has termed as the Union government’s “anti-people” policies and alleged encroachment on the constitutional rights of states.
Addressing party workers and supporters during the protest, the Chief Minister accused the Centre of weakening India’s federal structure by imposing sudden and discriminatory restrictions on Kerala’s borrowing limits. He said the developments currently facing Kerala are unprecedented in a democratic framework.
“This is something that should never happen in a democracy. Arbitrary decisions taken at the last moment are stripping the state of its rightful powers,” Vijayan said, adding that the state was left with no option but to take to the streets to protect its constitutional rights.
The Chief Minister claimed that the Centre’s decision to slash Kerala’s borrowing capacity had placed the state’s financial stability at serious risk, particularly during the final quarter of the financial year. He explained that while Kerala’s permissible borrowing limit stands at ₹12,000 crore, a significant portion of this amount has been blocked without clear justification.
According to Vijayan, from January to March, the Union government reduced funds available to Kerala for utilisation by more than half at the last minute. “Borrowing is essential to meet end-of-year commitments. However, ₹5,900 crore from the remaining borrowing limit has been denied without any valid explanation,” he said.
He further pointed out that under centrally sponsored schemes, states like Kerala are required to spend from their own resources first, only to face delays or denial in reimbursements later. The Chief Minister alleged that these actions were not isolated administrative decisions but part of a deliberate attempt to weaken Kerala’s development trajectory.
“These policies affect every section of society. Planning should help states move forward, but what we are seeing is an effort to undermine Kerala as a whole,” Vijayan remarked.
Highlighting Kerala’s achievements in health, education, and social welfare, the Chief Minister said the Centre has repeatedly questioned the state’s welfare model. “Despite Kerala’s proven contributions to national progress, our achievements are being systematically targeted,” he added.
Kerala Revenue Minister K. Rajan also criticised the Union government, stating that the restrictions imposed were unprecedented and violated the spirit of federalism. He said harsh financial measures were being pushed through during the final months of the financial year without consultation or transparency.
Rajan noted that although Kerala had completed all statutory procedures for borrowing ₹12,000 crore, ₹3,500 crore had already been deducted earlier under a “guarantee reduction” clause. He further alleged that a directive issued in December barred the state from borrowing an additional ₹5,900 crore from the remaining limit, without any formal explanation.
“Even within the Union Finance Ministry, there appears to be no clarity on why these restrictions were imposed,” Rajan said. He added that the Centre was also preventing Kerala from accessing nearly ₹6,000 crore that should have been available between January and March.
The LDF leadership alleged that the Centre’s actions reflect a politically motivated attempt to isolate Kerala rather than a policy-based financial decision. The protest concluded with a call for the Union government to withdraw the restrictions and respect the constitutional rights of states within the federal system.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)
