Finance Minister K.N. Balagopal presented Kerala’s 2026-27 budget on January 29, 2026, surpassing the ₹2 trillion milestone despite central funding delays, prioritizing social security and infrastructure ahead of assembly polls.
Welfare and Pension Highlights
A massive ₹14,500 crore goes to social security pensions, with ₹3,820 crore specifically for women’s security welfare pension under Sthree Suraksha. Frontline workers benefit from ₹1,000 monthly hikes for anganwadi staff, ASHA workers, and pre-primary teachers, plus ₹500 for helpers and ₹25 daily for school meal cooks.
Infrastructure and Development Push
₹400 crore funds the Chief Minister’s Connect to Work scholarship scheme, while ₹8,265 crore supports Kerala State Road Transport Corporation revival, including ₹127 crore for new buses. MC Road development gets ₹5,217 crore, solid waste management ₹160 crore, and in-principle approval for Regional Rapid Transit System with ₹100 crore initial outlay.
Fiscal and Local Governance Measures
Local bodies see central purpose funds rise to ₹3,236 crore and maintenance to ₹4,315 crore, plus special district panchayat funds and welfare for ex-representatives. Pensions extend to nuns in faith homes, Wayanad landslide loans waived, and an elderly budget introduced—Kerala’s first. Total expenditure targets sustainable growth at 6.19% GSDP, balancing welfare amid fiscal constraints.
