Thiruvananthapuram: The Kerala government has allocated ₹2,763 crore for the health sector in the 2026-27 State Budget, reaffirming its commitment to strengthening public healthcare infrastructure and expanding access to quality medical services across the state.
Presenting the Budget, Chief Minister and Finance Minister V. D. Satheesan announced the establishment of a second Government Medical College in Thiruvananthapuram, aimed at addressing the growing demand for medical education and advanced healthcare services in the state capital.
The Budget also unveiled plans for a new Government Medical College at Haripad in Haripad. The proposed institution is expected to improve healthcare accessibility in central Kerala while creating additional opportunities for medical education and research.
The government said the investments are part of a broader strategy to strengthen Kerala’s healthcare system through improved infrastructure, expanded medical education capacity and enhanced patient care services. The new institutions are expected to reduce pressure on existing medical colleges and improve access to specialized treatment facilities.
Apart from medical college expansion, the health sector allocation will support hospital modernization, procurement of advanced medical equipment, strengthening primary healthcare services and improving healthcare delivery across urban and rural areas.
The Budget also included the Oommen Chandy Health Insurance Scheme, for which ₹10 crore has been allocated. Under the scheme, eligible families will receive free medical treatment coverage of up to ₹25 lakh, providing financial protection against major healthcare expenses.
Health experts have welcomed the announcement, noting that Kerala’s growing population and increasing healthcare demands require additional medical institutions and expanded healthcare infrastructure. The new medical colleges are expected to contribute significantly to both healthcare delivery and the training of future medical professionals.
With an allocation of ₹2,763 crore, healthcare remains one of the key focus sectors in the UDF government’s first Budget, alongside education, infrastructure, agriculture and employment generation.
