Thiruvananthapuram, Jan 29 (PTI) With Assembly elections just months away, the second Pinarayi Vijayan government in Kerala on Thursday presented a budget that reaches into nearly every household in the state — from schoolchildren and working women to the downtrodden and job seekers.
Presenting the Left government’s final full budget before voters head to the polls, Finance Minister K N Balagopal unveiled a spending plan heavy on welfare, salary hikes and social security, alongside big promises on infrastructure and jobs.
The 2026–27 Budget projects Rs 1.82 lakh crore in revenue and Rs 2.4 lakh crore in total spending, while setting aside thousands of crores for pensions, health support and grassroots development.
Welfare pensions alone account for Rs 14,500 crore, underlining the Left government’s continued focus on social security.
In a move aimed at government employees and pensioners — a key voter group — the minister announced the 12th Pay Revision Commission, with a report due in three months.
Pending Dearness Allowance (DA) and Dearness Relief (DR) arrears will be cleared in phases, beginning with payments in February and March. The House Building Advance scheme will also be restored.
The budget further replaces the contributory pension system with an Assured Pension Scheme from April 1, guaranteeing up to 50 per cent of the last drawn basic pay as pension, along with dearness relief. Employees under the National Pension System will be given the option to switch.
Grassroots workers saw multiple benefits. Anganwadi workers, ASHA workers, pre-primary teachers and literacy mission volunteers will receive monthly pay hikes, while school cooks will see an increase in daily wages.
Pensions were also raised for journalists and patients suffering from serious illnesses such as cancer and tuberculosis.
Women and elderly citizens feature prominently. Funds have been earmarked for retirement homes, volunteer support for seniors living alone, and expanded health coverage. School students will be covered under an accident and life insurance scheme.
Focusing on the education sector, Balagopal announced that undergraduate degree courses in arts and science colleges will be made free for students, extending the state’s existing free education policy beyond Plus Two level.
On the development front, the government announced major allocations for road projects, rapid rail plans, agriculture, tribal education and technology hubs, including an AI-focused “Cyber Valley” in Kochi.
Incentives were also introduced to push a shift towards electric autorickshaws.
In his nearly three-hour-long budget speech, Balagopal raised political issues, saying the state not only survived the BJP-ruled Centre’s neglect and economic restrictions but also progressed in all walks of life and created a “new normal” in almost all sectors.
He said the Central government had been attempting to “suffocate” the state government in the last quarter by cutting previously fixed borrowing limits and withholding due arrears.
“However, this is temporary. This should be seen only as a bolt from the blue during elections. We are not alone in pointing out that Kerala is in a better position in terms of long-term fiscal prospects. The Reserve Bank of India and the Comptroller and Auditor General have reiterated the same and congratulated the state,” he claimed.
While the government described the budget as a balance between welfare and growth, opposition leaders questioned how the state would manage its rising revenue and fiscal deficits.
In a statement, Chief Minister Vijayan said the Budget reflects a people-centric approach, giving equal importance to comprehensive development and social welfare across all sections of society.
He said the LDF government had been striving over the past 10 years to transform Kerala into a modern, developed, middle-income society — a goal outlined in the 14th Five-Year Plan in 2022.
A middle-income society must rest on two pillars: building a welfare state in line with the Directive Principles of the Constitution and accelerating economic growth by increasing capital investment and strengthening infrastructure, the chief minister said.
“Available data show that Kerala is progressing rapidly on both fronts, and the swift implementation of the proposals announced in the budget will further ensure comprehensive development,” he said.
Vijayan dismissed criticism that the budget included projects that could not be implemented over the past decade, calling it a “baseless allegation born of frustration”.
Opposition parties lashed out at the ruling LDF over its budget, accusing the government of turning the financial statement into a “political document” and charging that it contained only “false promises”.
Speaking to reporters after the finance minister presented the state’s 77th budget, Leader of the Opposition in the Kerala Assembly V D Satheesan said the document showed that the government was promising to do what it had failed to achieve over the last decade.
“In the budget they say they will do what they failed to do in 10 years. They claim there will be changes in sectors where nothing was done during this period,” he said.
Satheesan alleged that the sanctity of the budget had been lost by mixing politics with it.
“Turning it into a political document and making announcements ahead of elections is meant to mislead the public,” the Congress leader charged. PTI HMP TBA TGB KH
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