Kerala Budget 2026-27 Unveils Major Welfare Push with Rs 14,500 Crore Pension Allocation
In a significant move ahead of the upcoming Assembly elections, Kerala Finance Minister K N Balagopal presented the state's Budget for the fiscal year 2026-27 on Thursday. The budget, characterized as people-centric, features a substantial Rs 14,500 crore allocation for social security pensions, marking a strong emphasis on welfare initiatives.
Pay Hikes for Frontline Workers and Enhanced Welfare Schemes
The budget announcements include notable pay increases for various categories of workers, particularly those in the health and education sectors. Key highlights are:
- Accredited Social Health Activists (ASHA) and Anganwadi workers will receive a monthly honorarium hike of Rs 1,000.
- Anganwadi helpers are set to get an additional Rs 500 per month.
- Pay for pre-primary teachers and literacy mission motivators has been raised by Rs 1,000 monthly.
- Daily wages of school cooking staff have been increased by Rs 25.
In addition to these pay hikes, the budget earmarks Rs 3,700 crore for the Chief Minister's Stree Suraksha Scheme, aimed at enhancing women's safety and security. Other welfare measures include enhanced spending on rural employment programs, comprehensive insurance cover for all categories including schoolchildren, and the provision of free degree education in arts and science colleges.
Infrastructure and Development Allocations
The budget also outlines significant investments in infrastructure and environmental protection:
- Rs 100 crore has been allocated for initial works on the proposed Regional Rapid Transit System (RRTS) connecting Thiruvananthapuram to Kasaragod.
- Rs 150 crore is designated for coastal development projects.
- Over Rs 250 crore is set aside for forest and wildlife protection initiatives.
Political Context and Financial Challenges
Presenting the sixth budget of the second Pinarayi Vijayan-led government in the Assembly, Balagopal emphasized the state's commitment to prioritizing welfare despite facing what he described as severe financial constraints imposed by the Centre. He alleged that Kerala's tax revenues are being "strangled," but asserted that the state has continued to progress despite sustained neglect.
This budget is seen as a strategic move to bolster public support ahead of the Assembly elections, with its focus on social security, worker benefits, and development projects aiming to address key voter concerns.
