BJP leader and Kerala BJP president Rajeev Chandrasekhar said the Kerala Budget 2026 shows the state has no money [1].
The criticism targets the fiscal sustainability of the state, suggesting that the current financial crisis is the result of long-term mismanagement and a lack of transparency regarding public funds.
Speaking to ANI in Thiruvananthapuram on Friday, Chandrasekhar said he was disappointed with the budget presentation [1]. He said the Kerala economy has been managed like a Ponzi scheme [2]. The BJP leader said the previous CPI(M) government hid the true fiscal situation to maintain a facade of stability [2].
Chandrasekhar said the current budget reveals a stark reality where the state lacks sufficient funds to meet its obligations [1]. He said the fiscal management under previous leadership was opaque and unsustainable, a strategy he believes has now collapsed.
During his critique, Chandrasekhar made a time reference to a budget presented 10 years ago [1] to illustrate the trajectory of the state's financial decline. He said the current situation is the inevitable result of those earlier fiscal decisions.
"There is no money," Chandrasekhar said [1].
The BJP leader said the state's economic framework was built on a foundation of hidden debts, and misleading figures [2]. He called for a complete overhaul of how the state manages its treasury to avoid further economic instability.
“"There is no money"”
The accusation that a state economy functions like a Ponzi scheme suggests that the government may have been using new loans or redirected funds to pay off old debts rather than generating organic revenue. If these claims of hidden fiscal deficits are accurate, Kerala may face significant challenges in funding public services and infrastructure without substantial central government intervention or drastic austerity measures.
