Kerala Finance Minister KN Balagopal presented the state’s 2026-27 budget in the Legislative Assembly on Thursday, unveiling a welfare-heavy roadmap ahead of the upcoming assembly elections. Terming the state’s progress a “new normal,” Balagopal earmarked Rs 14,500 crore for social security pensions while slamming the Central government for “strangling” the state’s finances through tax revenue cuts.
During his speech, Balagopal was vocal about the “severe neglect” by the Centre, stating that despite a reduction in tax revenues, Kerala has continued to develop. “Today’s Kerala is not the Kerala of ten years ago,” he noted, emphasizing that the state has witnessed transformative progress across all sectors.
Welfare Boost for Frontline Workers
In a significant move for grassroots workers, the sixth budget of the second Pinarayi Vijayan-led government announced a monthly honorarium hike of Rs 1,000 for ASHA and Anganwadi workers. Anganwadi helpers will see an increase of Rs 500.
The education sector also received a boost with a Rs 1,000 monthly hike for pre-primary teachers and literacy mission motivators. Additionally, the daily wages of school cooking staff have been raised by Rs 25.
Infrastructure & Women’s Safety
A major highlight is the shift in the state’s rail strategy. The government has allocated Rs 100 crore for the preliminary work of the Regional Rapid Transit System (RRTS). This 583-km high-speed corridor, modeled after the Delhi-Meerut system, is set to replace the stalled SilverLine project and will be implemented in four phases.
For women’s safety, the Chief Minister’s Stree Suraksha Scheme received an allocation of Rs 3,700 crore, alongside a broader Rs 3,820 crore set aside for women’s welfare pensions.
Key Takeaways from Kerala Budget 2026-27
| Category | Allocation / Announcement |
| Social Security Pensions | ₹14,500 Crore |
| Stree Suraksha Scheme | ₹3,700 Crore |
| Health Sector | ₹2,500 Crore |
| ASHA & Anganwadi Workers | ₹1,000 monthly hike |
| RRTS (Thiruvananthapuram-Kasargod) | ₹100 Crore for initial works |
| Education | Free degree education for Arts & Science students |
| Rural Employment | Budget increased by ₹1,000 Crore |
| Environment | ₹250 Crore for Forest and Wildlife protection |
Balagopal on Kerala Budget
The Kerala FM stated that the government is working to enhance living conditions and development outcomes across Kerala. “We are trying our best to improve the living conditions and development of the state of Kerala. We did that in every Budget,” as quoted by ANI. He also claimed that over the last decade of LDF rule, there has been broad-based improvement, saying growth has touched “common-people, old people, students, workers and the downtrodden.” It has also impacted modern technology as well as infrastructure development.