Finance Minister K.N. Balagopal presented the Pinarayi Vijayan-led LDF government’s final budget on January 29, 2026, allocating ₹14,500 crore for social security pensions and hiking monthly wages by ₹1,000 each for anganwadi and ASHA workers. The budget also sets aside ₹400 crore for the Chief Minister’s Connect Work Scholarship scheme amid expectations of election-oriented welfare measures ahead of April assembly polls.
Key Announcements
Balagopal opened by affirming Kerala’s stable finances despite alleged central neglect, emphasizing welfare priorities like salary, pension, and welfare pension increases. The cabinet pre-approved extending pensions to nuns and women in faith homes, loan waivers for Wayanad landslide survivors, and a Regional Rapid Transit System project.
Economic Context Presented post-Economic Review, the budget notes Kerala’s GSDP growth at 6.19% in real terms for 2024-25, down slightly from 6.73% prior, amid rising public debt concerns. This sixth consecutive budget by Balagopal aims for practical populism to sustain development momentum.
