Thiruvananthapuram: The Kerala government has allocated ₹1,422.60 crore as the state’s share for the Employment Guarantee Scheme in the 2026-27 Budget, reaffirming its commitment to rural employment generation and livelihood support.
Presenting the Budget, Chief Minister and Finance Minister V. D. Satheesan said the allocation would ensure the smooth implementation of employment guarantee programmes across the state, providing wage employment opportunities to thousands of rural households while supporting local development projects.
The Employment Guarantee Scheme continues to play a crucial role in strengthening rural livelihoods, creating community assets and providing income security to economically vulnerable families. The state’s contribution is expected to complement central funding and help maintain uninterrupted implementation of the programme.
In another significant announcement, the government allocated ₹160 crore as Urban Local Body Grant to strengthen municipal corporations, municipalities and other urban local self-government institutions across Kerala.
The grant is intended to support urban infrastructure development, civic services, sanitation projects, waste management initiatives and other local development activities. The allocation is expected to help local bodies improve public services and undertake development projects that directly benefit residents.
Officials said strengthening local self-government institutions remains a key priority of the UDF government. The Budget emphasizes decentralised governance and aims to empower local bodies with the resources needed to address community-level development challenges.
The allocations for employment generation and urban local governance form part of the government’s broader strategy to promote inclusive development, improve public services and enhance the quality of life in both rural and urban areas.
The Budget includes several other measures focused on infrastructure, healthcare, education, agriculture and entrepreneurship, reflecting the government’s effort to balance welfare commitments with long-term development goals despite fiscal constraints.
