Thiruvananthapuram: Chief Minister and Finance Minister V. D. Satheesan unveiled several major development and welfare initiatives in the UDF government’s first Budget, presenting a vision of a “New Kerala” focused on knowledge economy, investment, infrastructure, women’s welfare and employment generation.
Among the biggest announcements was the creation of a Kerala Knowledge Valley with an initial allocation of ₹100 crore to attract international universities, research institutions and innovation-driven industries to the state. The government also announced steps to facilitate the entry of leading foreign universities into Kerala.
A major boost was announced for women through the Indira Guarantee Scheme, with ₹600 crore allocated for free travel for women in KSRTC buses. The Budget also reaffirmed welfare commitments aimed at students, senior citizens, farmers and economically weaker sections.
The government announced plans to establish 10,000 new MSMEs and strengthen entrepreneurship across the state. A Global Job Watch Tower will be created to identify emerging international employment opportunities and align Kerala’s skill development programmes with global demand.
Kochi emerged as a major beneficiary of the Budget. The government announced a Film City in Kochi to strengthen the Malayalam film industry and create a world-class media and entertainment ecosystem. A Global Gold Hub centered around Kochi, Aluva and Perumbavoor was also announced to boost jewellery manufacturing, exports and investment.
The Budget also emphasized agriculture and rural development. The minimum support price for rubber was increased from ₹200 to ₹250 per kilogram. Additional support was announced for dairy development, with the government targeting a significant increase in milk production over the next three years.
The government reiterated its commitment to healthcare, education and infrastructure development while acknowledging Kerala’s fiscal challenges. Satheesan said the state faces serious financial constraints, including reduced central fund flows and a high debt burden, but maintained that the government would pursue inclusive growth and sustainable development.
The Budget is expected to serve as the roadmap for the UDF government’s five-year development agenda, combining welfare measures with investments in knowledge industries, entrepreneurship, technology and infrastructure.
