K. N. Balagopal presented Kerala’s Budget for 2026–27 on Thursday, outlining increases in support for grassroots workers, expanded social security spending, and fresh investments in infrastructure, welfare, and disaster recovery.
In what is widely viewed as the final full budget of the Pinarayi Vijayan government’s current term, the minister announced higher honorariums across several community-level roles. Pre-primary teachers and literacy mission motivators will receive ₹1,000 more per month. ASHA and Anganwadi workers will also see their monthly pay rise by ₹1,000, while Anganwadi helpers will get an additional ₹500. Daily wages for school cooking staff have been increased by ₹25.
A substantial ₹14,500 crore has been set aside for social security pensions. Noting that nearly 18.7% of the population are senior citizens, the state plans to introduce a dedicated “elderly budget,” which Balagopal said would be a first in India.
The government has earmarked ₹400 crore for the Chief Minister’s “Connect to Work” scholarship scheme, under which educated unemployed youth between 18 and 30 years will be given ₹1,000 per month for up to a year.
On disaster rehabilitation, Balagopal said the first set of houses for landslide-affected families in Wayanad will be handed over by the third week of February.
The budget allocates ₹20 crore to establish a centre in Thiruvananthapuram in memory of former Chief Minister V. S. Achuthanandan, aimed at sharing his values and life lessons with younger generations.
For transport infrastructure, ₹100 crore has been provided for initial work on a Regional Rapid Transit System linking Thiruvananthapuram to Kasaragod, inspired by the Delhi–Meerut model. An additional ₹1,000 crore has been allotted to MGNREGA.
To promote culture, the state plans to launch permanent art centres, starting in Thiruvananthapuram and later expanding to Kochi and Kozhikode.
Addressing the needs of gig workers, the government said it would work on improving their conditions and extending social welfare coverage. ₹20 crore has been allocated to create ‘Gig Hubs’ offering rest spaces and facilities.
The budget also introduces up to five days of free treatment for road accident victims in government and selected hospitals. To handle human-animal conflict and compensation, ₹100 crore has been reserved.
A new nativity card system for all Kerala residents will be rolled out with a ₹20 crore allocation. Under the Sabarimala master plan, ₹30 crore has been assigned for the Clean River Pampa initiative.
Balagopal said the overall thrust of the budget remains on strengthening social security, supporting employment, building infrastructure, and widening welfare measures across sectors.
