During the first session of the 16th Legislative Assembly, Chief Minister and Finance Minister V. D. Satheesan strongly criticized former Finance Minister K. N. Balagopal over the issue of fuel tax reduction. Replying to an adjournment motion moved by Balagopal regarding rising petrol and diesel prices, Satheesan questioned how the current government could clear the massive debts left behind by the previous Left Democratic Front (LDF) administration if it waived its tax revenues.

Satheesan pointed out that the previous LDF government had accumulated an additional revenue of ₹3,100 crore from fuel price hikes between 2016 and 2025 without reducing tax by even a single rupee. He recalled that when the United Democratic Front (UDF) had previously requested a tax cut, the then LDF Finance Minister Thomas Isaac had dismissed it as “foolishness.” Satheesan asked Balagopal whether he was now advising the current administration to commit the same act.

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Highlighting the financial crisis, Satheesan revealed that the previous government left a debt of ₹2,893 crore owed to the Civil Supplies Corporation (Supplyco). He emphasized that the government needs these tax revenues to clear Supplyco’s debts, enabling the agency to actively intervene in the market and curb the severe inflation currently gripping Kerala.