Presenting Kerala’s Budget 2026, Finance Minister K.N. Balagopal launched a sharp attack on the Centre, accusing it of weakening federalism, cutting states’ financial rights, and reducing Kerala’s tax share and borrowing limits. Balagopal on Thursday launched a sharp attack on the Centre while presenting the State Budget 2026, accusing the Union government of undermining federalism and encroaching upon states’ financial rights. He alleged that the Union government had reduced the State’s share of tax revenue, curtailed borrowing limits, and signalled the beginning of the end of the employment guarantee scheme. Also read | Kerala Budget 2026: Balagopal announces pay hike for ASHA and Anganwadi workers“The Centre is usurping the economic powers of states.