THIRUVANANTHAPURAM: In a major relief to Accredited Social Health Activists (ASHAs), anganwadi workers, pre-primary teachers, and literacy instructors, the Kerala Budget for 2026–27, presented by Finance Minister K. N. Balagopal on Thursday, announced a hike of Rs 1,000 in their monthly honorarium, as the state heads towards Assembly elections in a few months.
Anganwadi helpers will receive a monthly honorarium hike of Rs 500, while noon-meal cooks’ daily wages have been increased by Rs 25. Balagopal also assured that steps would be taken to expedite the disbursal of DA/DR for government employees and pensioners.
The Finance Minister announced that, from April 2026 onwards, the honorarium of elected representatives of local bodies will be increased. A welfare fund board will be set up for them with a corpus of Rs 250 crore.
For the first time in the country, an elderly budget document will be presented along with the main Budget for 2026–27.
Other major announcements:
The first batch of houses for victims of the 2024 landslide in Wayanad will be handed over in the third week of February.
A ‘VS Centre’, in memory of late Communist stalwart and former Chief Minister V. S. Achuthanandan, will be set up in Thiruvananthapuram, with an allocation of Rs 20 crore.
Rs 100 crore has been allocated for preliminary works of the proposed Regional Rapid Transit System (RRTS), covering 583 km of high-speed rail travel from Thiruvananthapuram to Kasaragod.
Rs 20 crore has been allocated for the welfare of gig workers.
Scrappage bonus and loan interest waiver for autorickshaw workers.
An additional Rs 1,000 crore allocation for the employment guarantee scheme.
A Rs 1,000 hike in monthly pension for cancer and AIDS patients.
Group insurance projects for lottery workers, taxi drivers, and autorickshaw workers.
Fee waiver for degree students in arts and science colleges in the government and aided sectors.
Medisep model insurance scheme for cooperative workers.
Health insurance schemes for auto and taxi workers to be rolled out.
A new health insurance scheme for families outside the purview of the Karunya Arogya Suraksha Padhathi.
Rs 20 crore allocated for preliminary works to provide nativity cards for residents of Kerala.
Rs 100 crore allocated for group insurance for fish workers
Additional allocation of Rs 100 crore to counter wildlife attacks.
Skill centres will be set up at panchayat level with an allocation of Rs 20 crore
Accident insurance for school students up to Class X
Rs 38.76 crore allocated for providing Rs 15,000 monthly scholarship to researchers
Noon meal scheme in schools to be provided additional allocation of Rs 266.66 crore
Pneumococcal vaccination project for elderly
DA / DR arrears for government employees, pensioners to be disbursed in Feb, March
Option will be provided for government employees to switch to an assured pension
Education & Youth
Rs 150.34 crore for the free school uniform scheme
Rs 410.66 crore for the mid-day meal programme
Free education scheme to be introduced in Arts and Science colleges
Rs 400 crore for the Connect to Work / Work Scholarship Scheme for educated unemployed youth (18–30)
Pre-primary teachers to get a Rs 1,000 pay hike
Literacy mission to receive an additional Rs 1,000 per month
Rs 30 crore allocated for the Vidyavahini project
Menopause clinics to be set up in district hospitals with an allocation of Rs 3 crore
Rs 57.03 crore allocated to make new medical colleges operational
Health, social welfare
The health sector receives a total allocation of Rs 2,500 crore
Rs 2.5 crore allocated for strengthening Ayurveda research
Rs 60 crore for the Institute of Advanced Virology, Thiruvananthapuram
New health insurance scheme for families outside the Karunya scheme
Life Saver project launched with Rs 15 crore for cashless accident treatment (first five days)
Rs 15 crore for insurance coverage for school students
Rs 20 crore allocated for issuing nativity cards to all Kerala residents
Group insurance scheme for Haritha Karma Sena workers and autorickshaw drivers
Rs 14,500 crore allocated for social welfare pensions
Rs 20 crore special package for development of urban clusters with 5 to 15 families
Allocation for health sector increased by over 15%
100 Supplyco outlets to be modernised with an allocation of Rs 17.8 crore
Rs 1,000 salary hike for librarians
Women, children & elderly welfare
Rs 3,720 crore for the CM’s Stree Suraksha scheme (Rs 1,000 monthly assistance for eligible women)
Anganwadi workers’ allowance increased by Rs 1,000; helpers by Rs 500
ASHA workers to receive a Rs 1,000 hike
Rs 20 crore for women’s skill centres at the panchayat level
Rs 30 crore subsidy support for organisations setting up old-age homes
Elderly Budget introduced focusing on senior citizen welfare
Rs 80 crore announced for providing egg and milk to Anganwadi children
Rs 7 crore allocated to support feature films by women directors
New KFC scheme for senior citizens, offering loans up to Rs 20 crore with 3% interest subsidy
Art, culture, Heritage
Additional Rs 1.5 crore for the M T memorial cultural centre
Rs 10 crore for setting up Kerala Kalakendrams across cities
Rs 20 crore allocated to establish VS Centre in Thiruvananthapuram
IT, science, digital infrastructure
Rs 30.75 crore for programmes promoting scientific temper
Rs 57.5 crore for Kerala Spacepark (K-Space)
Rs 63 crore for three IT parks
Rs 25 crore each for Technopark, Thiruvananthapuram and Infopark, Kochi
Rs 5 crore for a drone research park at Kottarakara
Number of IT firms increased from 650 to 1,160 under the LDF government
Rs 112.44 crore for KFON
Additional Rs 10 crore for internet connectivity in tribal areas
Rs 5 crore announced for constructing new IT hostels to provide affordable and quality accommodation for women working in the IT sector
New IT policy to be released soon
Transport, road safety
Rs 127 crore for purchasing diesel buses for KSRTC
Rs 18.67 crore for road safety works under the Motor Vehicles Department
Rs 23.7 crore for road safety projects
Rs 100 crore for preliminary works of the Rapid Rail Transport System (RRTS)
Rs 10 crore to explore feasibility of the Kattapana–Theni tunnel road
Rs 40,000 scrappage incentive for autorickshaw drivers switching to electric vehicles
Tourism, sports
Tourism sector allocation increased to Rs 413 crore
Rs 5 crore for developing a heliport at Kumarakom
Rs 10 crore for the Champions Boat League
Ports, industry, MSMEs
Rs 65 crore for development of non-major ports
Rs 310 crore allocation for the MSME sector
Rs 56 crore for modernisation of the cashew processing industry
Rs 294.60 crore for revival and development of public sector units
KSEB, flood, human-wildlife other developments
Rs 1,238 crore allocated for the Kerala State Electricity Board
Rs 50 crore for flood control works in Kuttanad
Rs 100 crore for projects to mitigate human–wildlife conflict
Rs 153 crore for coastal development initiatives
Agriculture, Kudumbashree, VB-G RAM G
Rs 150 crore earmarked for paddy procurement
Rs 10 crore to strengthen Kudumbashree’s marketing network
Additional Rs 2,000 crore required to meet expenditure under the VB-G RAM G Act
Employment, housing, local governance
‘Work Near Home’ scheme to expand to 200 centres with Rs 150 crore allocation
1.46 lakh appointments made through PSC under the current government
Increased fund devolution announced for newly elected local self-government bodies
5.25 lakh houses completed under the LIFE housing scheme
Rs 1,497 crore earmarked for the LIFE Mission housing project
3,408 houses provided under the Punargeham coastal rehabilitation scheme
Rs 10 crore allocated for the MN Laksham Veedu housing project
Rs 200 crore for the Ayyankali Employment Guarantee Scheme
Prisons
Rs 47 crore allocated for jail development and welfare of prisoners
Sabarimala
Rs 30 crore for Sabarimala master plan development
Rs 30 crore for the Clean Pamba River project
SC / ST, OBC, minority welfare
Rs 3,507 crore allocated for welfare projects for Scheduled Caste communities
Rs 1,012 crore allocated for welfare projects for Scheduled Tribe communities
Allocation for SC/ST development sector increased by over 15%
Rs 200.94 crore set aside for Backward Classes welfare
Rs 130.78 crore for OBC education scholarships
Rs 4 crore for overseas education scholarships for minority students
New scheme for sustainable development of converted Christians, with Rs 10 crore allocation
Labour
Rs 950.89 crore earmarked for labour welfare schemes
Rs 5.75 crore allocated for various welfare schemes for migrant workers
Other major allocations
Rs 2 crore for continuing extreme poverty eradication efforts
Rs 5.75 crore allocated for various welfare schemes for migrant workers
Rs 1,000 crore allocated for the Rebuild Kerala Initiative
Rs 17 crore set aside for market intervention schemes of Supplyco
Rs 11 crore for the Chief Minister’s Scholarship for research
Rs 210 crore allocated for projects proposed through the Navakerala Sadas
Each MLA can propose projects worth up to Rs 7 crore
Rs 4 crore allocated for a Manaveeyam model cultural corridor at Peralassery, Kannur
Zoo project at Taliparamba gets Rs 4 crore
A new Pay Revision Commission announced for government employees; report to be submitted within three months
DA arrears of government employees to be fully cleared