Thiruvananthapuram: Chief Minister and Finance Minister V. D. Satheesan on Friday presented the first Budget of the United Democratic Front (UDF) government in the Kerala Assembly, describing it as a roadmap for building a “New Kerala” while addressing the state’s financial challenges. The Budget combines welfare commitments with measures aimed at boosting investment, entrepreneurship, higher education and job creation.
Beginning his Budget speech by referring to the government’s White Paper on Kerala’s finances, Satheesan said the state faces significant fiscal pressures and reduced resource availability. Despite these constraints, he emphasized that the government remains committed to welfare programmes and long-term development initiatives.
One of the biggest announcements was the launch of the Kerala Knowledge Valley project, for which ₹100 crore has been allocated. The initiative aims to transform Kerala into a global higher education destination by attracting leading international universities and research institutions. The government also plans to amend existing legislation to facilitate the entry of top foreign universities into the state.
The Budget places strong emphasis on entrepreneurship and employment generation. The government announced plans to establish 10,000 new MSMEs across Kerala and create a Global Job Watch Tower to track international employment trends and help align skill development programmes with emerging job opportunities worldwide.
In a move to strengthen Kerala’s innovation ecosystem, the government earmarked funds to support space technology startups and emerging industries. Officials said the state intends to position itself as a hub for technology, innovation and knowledge-based industries.
Agriculture and traditional industries also received significant attention in the Budget. The government announced a comprehensive package for the cashew sector, enhanced support for dairy development and measures aimed at strengthening rural livelihoods. Kerala aims to increase daily milk production to one crore litres within the next three years, with additional investments planned in animal husbandry and dairy infrastructure.
The Budget reiterated the UDF government’s commitment to welfare-oriented governance, with a focus on women, students, farmers, senior citizens and economically weaker sections. Satheesan said economic growth and social welfare must progress together to ensure inclusive development across the state.
Political observers view the Budget as a crucial indicator of the new government’s priorities following its victory in the 2026 Assembly elections. With fiscal discipline, investment promotion and welfare delivery forming the core of the Budget, the UDF government is seeking to balance development ambitions with the realities of Kerala’s financial situation.
