THIRUVANANTHAPURAM: Chief Minister VD Satheesan on Friday presented the revised Budget for 2026-27 in the Kerala Legislative Assembly, the first budget of the Congress-led United Democratic Front (UDF) government that assumed office last month.
"Budget will form a roadmap for the State’s development trajectory for the next five years. Kerala’s social and development indicators have been declining. Youth employment is rising. The government is committed to improving the health and education sectors, enhancing job opportunities, ensuring the well-being of senior citizens. The budget will pave the way for a Puthuyuga Kerala (New-age Kerala)," said Chief Minister VD Satheesan during his preparatory speech before the budget.
The CM in his budget speech announced the constitution of an expert committee to restructure the functioning of KIIFB. It said KIIFB’s off-budget borrowings and debt burden had created economic instability in the state.
Mission Samudra will be launched with an allocation of Rs 400 crore to develop Kerala into a major player in the global maritime sector. A maritime policy focusing on 13 non-major ports will be prepared and an international maritime museum established.
A Single-Window Invest Kerala Cell will be set up to speed up industrial development. The government will assist in establishing 10,000 MSMEs, with Rs 100 crore earmarked for the initiative.
The government will launch the One Kerala Karuthal Mission to support people facing extreme poverty through CSR funds and public contributions.
Rs 10 crore allocated to Oommen Chandy Health Insurance Scheme
The budget earmarked Rs 5 crore for expanding the SpacePark project and Rs 2 crore for establishing a Global Job Watch Tower to monitor emerging job opportunities and future skills.
A Kerala Knowledge Valley will be established to attract leading global institutions and universities, with Rs 100 crore allocated for the project.
The Kerala Health and Life Science City project received Rs 100 crore. The project will include multi-speciality hospitals, a medical college, training centres, rehabilitation facilities, diagnostic centres and research institutions.
The Oommen Chandy Health Insurance Scheme, one of the six Indira Guarantees, will provide support of up to Rs 25 lakh per family. Rs 10 crore has been allocated in the first phase.
A Kerala School of Planning, Architecture and Design will be established under the PPP model with an allocation of Rs 2 crore.
The government announced the implementation of light metro projects in Thiruvananthapuram and Kozhikode. Rs 20 crore has been earmarked for preliminary work.
KSRTC to recieve Rs 600 crores
KSRTC will receive Rs 600 crore to compensate for losses incurred due to free bus travel for women and transgender persons.
The budget allocated Rs 50 crore to promote startups, innovation hubs, smart industries and technological entrepreneurship among Gen Z.
An allocation of Rs 192.20 crore was made for technological measures to mitigate human-wildlife conflict.
The kerosene subsidy for fishermen was increased to Rs 75, while the minimum support price of rubber was raised to Rs 250.
Special development packages focusing on education, health and livelihoods will be implemented in Wayanad, Kasaragod and Idukki districts. A new housing scheme for SC/ST communities was also announced.
The General Education sector received Rs 1,477.57 crore. School campuses will be made girls-friendly with clean toilets and access to sanitary napkins.
A Jawaharlal Nehru Centre for Scientific Temper will be established with an allocation of Rs 25 crore.
To curb ragging, the government will develop the Sidharthan Student Distress App and introduce the Sidharthan Anti-Ragging and Student Welfare Act in memory of J.S. Sidharthan. An Academic Council will be formed to reduce excessive political influence in universities, and bridge programmes will be introduced for job-seeking graduates.
Govt allocates Rs 2,076 crore to health sector
The health sector received Rs 2,076 crore. The budget proposed annual health check-ups for people above 40 years with financial assistance to make them affordable.
The government announced measures to strengthen medical colleges in Kasaragod, Idukki, Wayanad and Manjeri. It also proposed operationalising the second medical college in Thiruvananthapuram and establishing a new medical college at Haripad with Rs 100 crore.
The Reach Kerala project will promote medical tourism by coordinating modern medicine and AYUSH services. Selected medical colleges will be given autonomous status with the goal of achieving AIIMS-level standards.
The budget also announced a School Health Brigade, Golden Hour trauma care project, strengthened epidemic surveillance, improved medicine procurement through KMSCL, phased settlement of Karunya Arogya Suraksha Padhathi dues, tribal health clusters, Coastal Care Units, mobile testing labs, rare disease medicine support and expanded water quality testing facilities.
The government will launch the 'Makalkoppam' project to prevent crimes against women.
An allocation of Rs 10 crore was made for 'Operation Toofan' to curb narcotic crimes in the state.
The budget proposed a new tax slab for low-alcohol beverages and reduced road tax on electric vehicles priced below Rs 20 lakh.
