Union Budget ignores Kerala, CPI(M) to observe Feb 3 as 'Black Day'
Thiruvananthapuram (PTI): The ruling CPI(M) on Monday called for observing February 3 as a 'Black Day' across Kerala, protesting what it described as the Centre's "severe neglect" of the state in the Union Budget.
In a press statement, the party state secretariat said the Budget was presented as if Kerala did not exist on the map of India.
It pointed out that Kerala had placed 29 demands before Union Finance Minister Nirmala Sitharaman ahead of the Budget, but none of them were accepted.
The state did not receive a single long-pending project, the CPI(M) said.
The party criticised the Centre for once again ignoring Kerala's demand for an AIIMS, and for excluding the state from the seven high-speed rail corridors announced for railway development.
It also said no special package was approved for the Vizhinjam port, while Kerala was denied an Ayurveda AIIMS despite being known as the cradle of Ayurveda.
The state was also left out of inland water transport projects.
The CPI(M) said the Budget failed to protect traditional industries in Kerala and did not include the state in announcements on universities and townships.
There was no provision for a rubber price stabilisation fund, nor any mention of the proposed railway coach factory, the party said.
It also accused the Centre of ignoring NRI welfare and scheme workers, including ASHA workers.
The party alleged that the Budget favoured corporate interests, noting that corporate taxes were not increased and the alternate minimum tax for big companies was reduced.
It also criticised cuts in the employment guarantee scheme, saying it would badly affect Kerala.
"There has been no move to strengthen welfare schemes. By completely neglecting the poor, the Budget has delivered yet another blow to Kerala," the CPI(M) said.
As part of the protest, the party said black flags would be hoisted at all booths on February 3 and urged people to participate in demonstrations against what it called an anti-people Budget.
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Rupee rises 42 paise to close at 91.51 against US dollar
Mumbai (PTI): The rupee gained 42 paise to close at 91.51 (provisional) against the US dollar on Monday, a day after the Union Budget 2026-27 was presented, largely as crude oil prices retreated from their elevated levels.
Forex traders said the Reserve Bank of India (RBI) seemed to be defending the 92 per dollar level with a lot of resolve.
At the interbank foreign exchange market, the rupee opened at 91.95 against the US dollar, then gained some ground to touch an intraday high of 91.45 and a low of 91.95 against the greenback.
At the end of the trading session on Monday, the rupee was quoted at 91.51 (provisional) against the greenback, registering a gain of 42 paise from its previous close.
On Friday, the rupee hit a record low of 92.02 before ending 6 paise higher at 91.93 against the US dollar.
For the rupee, the Budget offered reassurance, not relief, and the government's high borrowing plan is likely to weigh on investor sentiments going ahead.
The government is likely to borrow Rs 17.2 lakh crore in the next financial year to fund its fiscal deficit projected at 4.3 per cent of the GDP.
"Overall, it looks like a prudent budget, focusing on continuity. Given the geopolitical uncertainties and challenges, it seems the government it seems has chosen to go a bit slow on fiscal consolidation," IFA Global said in a research note.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 97.07.
Brent crude, the global oil benchmark, was trading 4.46 per cent lower at USD 66.23 per barrel in futures trade, as the US and Iran were talking about avoiding US strikes on Iranian soil.
The oil prices had touched USD 72 per barrel after traders expected a US strike on Iran during the weekend.
"As the Budget volatility subsides, the Indian rupee and domestic equities have emerged as regional outperformers. A combination of cooling commodity prices, enhanced fiscal control, large forex reserves and suspected corporate dollar selling has provided a tailwind for the local currency," Dilip Parmar, Research Analyst, HDFC Securities, said.
In the near term, the USD-INR spot is likely to consolidate within a tight range, finding support at 91.10 and facing resistance near 91.85, Parmar added.
On the domestic equity market front, Sensex jumped 943.52 points to settle at 81,666.46, while the Nifty surged 262.95 points to 25,088.40.
On Sunday, equity markets reacted negatively to the FY27 Budget as it proposed a higher securities transaction tax on derivatives and changes to buyback taxation, raising concerns over increased costs for investors.
Foreign Institutional Investors offloaded equities worth Rs 588.34 crore on Sunday, according to exchange data.
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