On February 4, 2026, the Kerala Assembly passed a resolution criticizing the Centre for "continuing neglect of Kerala," especially seen in the Union Budget 2026-27. The resolution was introduced by Chief Minister Pinarayi Vijayan. It urged the Union government to address Kerala’s key demands, including setting up an All India Institute of Medical Sciences (AIIMS) and approving a high-speed rail corridor. Both were ignored in the budget. The resolution described the neglect as "an insult" to constitutional federal principles. It stressed that balanced regional development is vital for the nation’s progress, but the latest budget hurt Kerala more than previous ones. Opposition Leader V.D. Satheesan said the Congress-led UDF was not informed about the resolution. The Opposition had boycotted the Assembly earlier over the Sabarimala gold theft issue. Kerala has sought an AIIMS for over 20 years, identified land, and taken steps, but the Centre has not acted yet. The high-speed rail corridor is seen as crucial for cutting travel time on the 573-km Kerala route, which now takes nearly 13 hours. The resolution also highlighted other unmet demands: a coach factory, unconditional funding for the Vizhinjam seaport, point of call for Kannur Airport, and support for Wayanad landslide victims. It complained about reduced Central support for employment schemes, with budget cuts from ₹88,000 crore to ₹30,000 crore. Fiscal restrictions and loss of ₹53,000 crore revenue deficit grants from the 16th Finance Commission were also cited as harms to Kerala’s economy. The resolution accused the Centre of economic blockade, discrimination, and withholding funds. It warned that India can only progress if all States, including Kerala, thrive equally. The resolution was adopted without the Opposition present, spotlighting political tensions in the State Assembly.