Kerala Budget 2026: Kerala presented its sixth annual budget in the State Legislature on Thursday, January 29. Presenting the state budget, Finance Minister KN Balagopal said that the budget addresses the transformative progress that the state has undergone over the last 10 years. He further emphasised that the progress achieved by the state in the last decade has touched upon all the spheres of people’s lives, a feat which has not been achieved by any other state in the country.
 
The finance minister further praised the state government and said that most of the electoral promises, which are aimed at inclusivity and long-term prosperity, continue to progress as planned.
"This is the sixth budget that I am presenting. Each budget I have presented on behalf of the state government has been an announcement of carefully planned programmes aimed at fulfilling the promises made to the people during the election period. We have presented before the people the progress achieved in implementing the commitments made in the election manifesto," he added.
 
The budget can prove to be pivotal for the second Pinarayi Vijayan led-LDF government, especially at a time when state elections are knocking at the doorsteps.

Kerala Budget 2026: What Are The Major Announcements?

  • In the latest state budget presented in the assembly, the government has increased the pay of pre-primary teachers, ASHA workers and people who are employed at the grassroots to promote education in the society by Rs 1,000 per month.
  • Mid-day meal workers will get a hike of Rs 25 in their daily wages.
  • The monthly pension for cancer and AIDS patients has been increased by Rs 1,000.
  • The government has also allotted Rs 100 crore for group insurance of fishermen of the state. Insurance coverage has also been extended to the unorganised sections of the state.
  • Overall, the government has allotted Rs 14,500 crore for disbursing welfare pensions for the year 2026-27.
  • All the students in the arts and science colleges will receive free degree education under the new budget.
  • The government has also decided to expand the Centre for Development Studies, a premier social science research institute affiliated to the Jawaharlal Nehru University, by building a state-of-the-art campus for which it has allocated Rs 10 crore.
  • To promote a clean and sustainable mode of transportation, the government is set to give a two per cent subsidy for purchasing electric auto rickshaws. Additionally, a group insurance scheme will be launched for auto rickshaw and taxi workers.
  • Rs 400 crore has been allocated for the Chief Minister’s "Connect to Work" scholarship scheme, which aims to help students transition into the work force by giving them financial assistance.
  • A special nativity card has been announced by the government to address the concerns of SIR.
  • The government has allocated Rs 1 crore to promote the pottery sector, Rs 2 crore to establish a memorial for Ayya Vaikunta Swami, Rs 20 crore for Women Skill Centres and Rs 10 crore for women-led value-added units.

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