Kerala Budget 2026: Kerala’s Left Democratic Front government on Thursday presented a welfare-driven Budget for 2026–27, signalling a renewed push to strengthen social security, support grassroots workers and expand public welfare programmes ahead of the Assembly elections. Finance Minister K N Balagopal tabled the sixth Budget of the second Pinarayi Vijayan-led government in the State Legislative Assembly, outlining major allocations for pensions, wage hikes and social protection.
At the core of the Budget is a substantial ₹14,500 crore allocation for social security pensions for the 2026–27 financial year. The amount will be used to disburse welfare pensions to senior citizens, widows, persons with disabilities and other vulnerable sections who rely on monthly assistance from the state. Balagopal said the allocation reflects the government’s commitment to protecting its most dependent citizens despite fiscal pressures and borrowing constraints.
A key highlight of the Budget is the revision of honorariums for frontline community workers. The Finance Minister announced a ₹1,000 per month increase in the honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers, while Anganwadi helpers will receive an additional ₹500 per month. These workers play a crucial role in delivering healthcare, nutrition and early childhood services at the grassroots level, and the hike is expected to provide relief amid rising living costs.
The welfare push extends to the education sector as well. Pre-primary teachers and literacy mission motivators will receive a ₹1,000 monthly increase, while school cooking staff will see their daily wages rise by ₹25. The measures are aimed at recognising the contribution of support staff who are integral to Kerala’s public education system.
Women’s safety and social protection form another major pillar of the Budget. The government has earmarked ₹3,700 crore for the Chief Minister’s Stree Suraksha Scheme, reinforcing its focus on women’s security and welfare. In addition, ₹3,820 crore has been allocated specifically for women’s security welfare pensions. Balagopal also announced a ₹400 crore allocation for the Chief Minister’s ‘Connect to Work’ scholarship scheme, which is intended to improve employability and access to opportunities.
Beyond pensions and wage revisions, the Budget places emphasis on employment generation and access to education. The allocation for the rural employment scheme has been increased by ₹1,000 crore compared to previous years, providing additional support to rural households facing economic uncertainty. The government also proposed free degree education for students in arts and science colleges, along with life and health insurance coverage for all categories of people, including school children.
Infrastructure and development spending also feature in the Budget. The state has set aside ₹100 crore for preliminary works on the Regional Rapid Transit System corridor from Thiruvananthapuram to Kasaragod, a project that recently received in-principle Cabinet approval and is expected to significantly improve long-distance connectivity. Additional allocations include around ₹150 crore for coastal development projects and more than ₹250 crore for forest and wildlife protection.
In his Budget speech, Balagopal described the past decade as a period of transformative change for Kerala, stating that the state has created a “new normal” across sectors such as health, education and social security. He said the progress achieved in people’s quality of life cannot be compared with the past and invited the opposition to engage in a fact-based discussion on the state’s development record.
The Finance Minister also cautioned against communal polarisation, calling social unity Kerala’s most valuable asset. He said peace, religious harmony and collective unity are essential for the state’s future growth, investment and tourism, and warned against political strategies that could weaken this foundation.
Balagopal once again accused the Central government of restricting Kerala’s fiscal space by cutting borrowing limits and withholding dues, alleging that the measures amount to political pressure ahead of elections. Despite these constraints, he said the state has continued to move forward with welfare and development initiatives.
Calling it his sixth Budget, the Finance Minister said the document reflects the government’s success in implementing promises made during the election campaign. He expressed confidence that most commitments outlined in the manifesto have been fulfilled through carefully planned programmes, positioning the Budget as both a record of delivery and a roadmap for the year ahead.