With Assembly elections on the horizon, Kerala’s Left-led government on Thursday unveiled a strongly welfare-oriented Budget for 2026–27, signalling a renewed push to consolidate social support through higher pensions, wage hikes for grassroots workers and expanded public programmes.
Presenting the sixth Budget of the second government headed by Pinarayi Vijayan in the State Legislative Assembly, Finance Minister K N Balagopal announced an allocation of ₹14,500 crore for social security pensions, alongside increases in honorariums and wages for several categories of frontline and education-sector workers.
Pay hikes for ASHA, Anganwadi and education workers
A central feature of the Kerala Budget is a revision in monthly payments for key community workers. Balagopal announced that the honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers has been increased by ₹1,000 per month, while Anganwadi helpers will receive an additional ₹500.
The Budget also provides a ₹1,000 monthly increase for pre-primary teachers and literacy mission motivators, and a ₹25 per day rise in wages for school cooking staff.
Major outlays for women’s safety and welfare pensions
The Kerala government has earmarked ₹3,700 crore for the Chief Minister’s Stree Suraksha Scheme, reinforcing its emphasis on women’s safety and social protection. Additionally, Balagopal said ₹3,820 crore has been allocated specifically for women’s security welfare pensions.
“ ₹400 crore is allocated for the Chief Minister’s ‘Connect to Work’ scholarship scheme and ₹14,500 crore is allocated for disbursing welfare pensions for the year 2026-27,” he said.
Employment, education and infrastructure focus
Beyond social security, the ₹1,000 crore increase in allocation for the rural employment scheme”>Kerala Budget proposes a ₹1,000 crore increase in allocation for the rural employment scheme compared to previous years. It also announced life and health insurance coverage across all categories of people, including school children, and free degree education for students in arts and science colleges.
On infrastructure, Balagopal set aside ₹100 crore for preliminary works on the Regional Rapid Transit System (RRTS) corridor from Thiruvananthapuram to Kasaragod, which recently received in-principle Cabinet approval.
Further allocations include around ₹150 crore for coastal development and over ₹250 crore for forest and wildlife protection.
‘New normal’ narrative and defence of Kerala model
In his Budget speech, Balagopal presented the past decade as a period of transformative change for the state.
“Today’s Kerala is not the Kerala of ten years ago. In every sector, Kerala has created a new normal. The progress achieved in all spheres of people’s lives is remarkable, so much so that even the old normal cannot be compared with it. During this session of the Assembly, we wish to discuss the changes that have taken place in every development sector. With facts, figures, and examples, we are prepared to present the proud achievements Kerala has attained. We are ready to patiently listen to what the opposition has to say. If such a discussion takes place in the Assembly, it will be a good model of democracy,” he said.
Warning against communal polarisation
Balagopal repeatedly emphasised social unity as Kerala’s most valuable asset, cautioning against divisive political strategies.
“There are more messages of happiness to be shared in the new budget speech. However, before moving on to that, there is a danger that concerns the people of Kerala and one that needs to be approached with caution, which I wish to speak about. No matter how many budgets are presented or how many crores are spent, there is an asset that Kerala has which cannot be obtained through any of that. That great asset is the unity of the people of Kerala. The ability to maintain peace, tranquillity, religious harmony, and unity is the biggest guarantee of our future growth and prosperity. There is no need to think of any better factor than this to attract foreign tourists, entrepreneurs, and capital to our state. But venomous communal serpents are lying in wait to destroy this collective unity of Kerala. The new strategy being taught by election experts is to brand those who build a people’s unity as a shield against communalism. We dismiss such branding with contempt,” he said.
Fresh attack on Centre over finances
The Finance Minister once again accused the Central government of restricting Kerala’s fiscal space, alleging politically motivated pressure ahead of elections.
“By cutting the previously fixed borrowing limit and denying legitimate arrears, the central government is attempting to choke the state government. All this is temporary. It should be seen only as a stealth attack during the election period,” KN Balagopal said.
He added earlier that despite financial constraints, the state had continued to move forward.
“Despite severe neglect, Kerala has progressed,” the finance minister said.
‘Promises largely fulfilled’, says Balagopal
Calling the document his sixth Budget, Balagopal said the government had largely delivered on its electoral commitments.
“I am presenting the budget with great happiness and pride. This is the sixth budget that I am presenting. Each budget I have presented on behalf of the state government has been an announcement of carefully planned programmes aimed at fulfilling the promises made to the people during the election period. We have presented before the people the progress achieved in implementing the commitments made in the election manifesto. The progress reports presented during the tenure of the previous government have been widely discussed. With the satisfaction that the promises made have been almost fully implemented, today’s budget is being presented,” he said.
