Thiruvananthapuram: The Kerala government has announced an increase in road tax to 15 percent as part of its revenue mobilization efforts in the 2026-27 State Budget. The proposal was unveiled by Chief Minister and Finance Minister V. D. Satheesan while presenting the first Budget of the UDF government.
The revised road tax structure is expected to enhance the state’s revenue collections and support infrastructure development initiatives. Government officials stated that the additional revenue generated through the tax revision will help fund key development projects and improve public infrastructure across Kerala.
Alongside the tax increase, the government announced a substantial allocation of ₹5,952.29 crore for the Public Works Department (PWD). The allocation is aimed at accelerating road development, bridge construction, highway modernization and maintenance of public infrastructure throughout the state.
The PWD allocation will support ongoing road improvement projects and facilitate the implementation of new infrastructure initiatives designed to improve connectivity and transportation efficiency. The government has emphasized the importance of modern infrastructure in supporting economic growth, tourism and industrial development.
Officials said the investment will focus on upgrading state highways, improving rural road networks, strengthening bridges and enhancing road safety measures. The allocation is also expected to support maintenance works that have been delayed due to financial constraints in previous years.
The Budget highlights infrastructure development as one of the key priorities of the UDF government. By increasing investment in transportation networks, the administration aims to improve mobility, reduce travel time and create a stronger foundation for future economic expansion.
The road tax revision and enhanced PWD funding form part of a broader strategy to balance fiscal responsibility with development spending. The government has indicated that improved infrastructure will play a crucial role in attracting investment, generating employment and supporting Kerala’s long-term growth objectives.
