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Kerala Finance Minister KN Balagopal on Friday (January 29) presented the state Budget for the financial year 2026-27. He announced several people-centric measures ahead of the Assembly elections, which are due in April this year.
Balagopal promised a massive ₹14,500 crore boost to help social security pensioners and fund a series of new community programmes. He was presenting the second Pinarayi Vijayan-led government's sixth Budget in the Legislative Assembly.
Here are the key highlights from the Budget:
Balagopal promised a massive ₹14,500 crore boost to help social security pensioners and fund a series of new community programmes. He was presenting the second Pinarayi Vijayan-led government's sixth Budget in the Legislative Assembly.
Here are the key highlights from the Budget:
- Honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers has been hiked by ₹1,000 per month, and that of Anganwadi helpers by ₹500.
- The pay of pre-primary teachers and literacy mission motivators has been increased by ₹1,000 per month.
- Daily wages of school cooking staff have been raised by ₹25 per day
- The Health sector gets a total allocation of ₹2,500 crore.
- ₹80 crore for egg and milk for Anganwadi children.
- ₹3,700 crore for the Chief Minister's Stree Suraksha Scheme.
- Life and health insurance schemes for all categories of people, including school children.
- Allocation for the rural employment scheme increased by ₹1,000 crore.
- The LDF government's annual expenditure stands at ₹1.69 lakh crore.
- Balagopal introduces Elderly Budget, focussing on the welfare scheme for senior citizens. ₹30 crore allocated to provide subsidies for groups setting up retirement homes for the elderly.
- ₹20 crore set aside to set up a V.S. Centre in Thiruvananthapuram.
- Rare earth corridor connecting Chavara in Kollam and Kochi to be set up.
- ₹100 crore earmarked for starting the preliminary works of the Rapid Rail Transport System
- 'Work near home' will be expanded to 200 centres next year, for which ₹150 crore has been earmarked.
- ₹20 crore allocated for setting up skill centres at panchayat level for women.
- ₹20 crore allocation for setting up gig hubs for gig workers to unwind during their hectic working hours.
- ₹40,000 scrappage bonus for auto drivers to convert the fossil fuel-powered autorickshaws to electric.
- Advocate welfare pension scheme will be increased to ₹20 lakh from the current ₹10 lakh in phases.
- Free education scheme to be introduced in Arts and Science Colleges.
- ₹153 crore announced for coastal development projects in Kerala.
- ₹100 crore allocated for various projects to reduce human-wildlife conflict.
- ₹30 crore for Sabarimala master plan development works.
- Allocation of ₹1238 crore for Kerala State Electricity Board.
- Allocation for the MSME sector has been increased to Rs 310 crore.
- Allocation of ₹63 crore for the three IT parks in the state — Thiruvananthapuram Technopark, Kochi Infopark and drone research park at Kottarakara in Kollam
- ₹10 crore for exploring the possibility of the Kattapana-Theni tunnel road.
