Kerala’s Budget for the financial year 2026-27, which was presented on Thursday by state Finance Minister, K N Balagopal, lays heavy focus on social security pensions and hiking honorariums for ASHA and Anganwadi workers.
Presenting the second Pinarayi Vijayan-led government’s sixth Budget in the Legislative Assembly, Balagopal announced that the honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers has been hiked by ₹1,000 per month and that of Anganwadi helpers by ₹500 as part of ₹14,500 crore allocated for social security pensions.
The pay of pre-primary teachers and literacy mission motivators has also been increased by ₹1,000 per month and the daily wages of school cooking staff have been raised by ₹25 per day, he said.
The Budget also announced ₹3,700 crore for the Chief Minister’s Stree Suraksha Scheme.
There's also an increase in allocation for the rural employment scheme by ₹1,000 crore as compared to previous years, life and health insurance schemes for all categories of people, including school children, and free degree education for students in arts and science colleges were also announced in the budget.
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There's allocation of ₹100 crore for the initial works in connection with the Regional Rapid Transit System (RRTS) from Thiruvananthapuram to Kasaragod that was given in-principle approval by the state cabinet on Wednesday.
The Budget also announced around ₹150 crore for the development of the coastal region and Rs 250 crore for forest and wildlife protection.
In his speech, Balagopal criticised the Central government, alleging that the Centre is "strangling" Kerala and cutting down its tax revenues. "Despite severe neglect, Kerala has progressed," the finance minister said.
This Budget constitutes the final one of the present Left Democratic Front (LDF) government, since Kerala is scheduled to have the Assembly elections in a few months. In a pre-Budget chat on Tuesday, Balagopal had predicted better economic growth for Kerala in the coming five years on the back of preparatory efforts made during the previous and current LDF governments’ terms.
In his 2025-26 Budget speech too, the state Finance Minister had stated that Kerala was in a stage of “take-off,” and that the state is all set to embark on a phase of rapid economic growth.
The 2026-27 Kerala Budget also comes ahead of the Union Budget, which the Union Finance Minister, Nirmala Sitharaman, is scheduled to present on Sunday, February 1, and the tabling of the recommendations of the 16th Finance Commission for the five-year award period from 2026-27.
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