Presenting the second Pinarayi Vijayan-led government’s sixth budget in the Assembly, Balagopal announced the 12th Pay Revision Commission, continuing the long-standing policy of reviewing government employees’ salaries every five years.
Photo: IANS
Eyeing the upcoming Assembly elections, Kerala Finance Minister K N Balagopal on Thursday presented a people-centric Budget for 2026-27, announcing Rs 14,500 crore for social security pensions, a Rs 1,000 increase in pay for pre-primary teachers, and a Rs 1,000 monthly raise for literacy mission motivators.
Presenting the second Pinarayi Vijayan-led government’s sixth budget in the Assembly, Balagopal announced the 12th Pay Revision Commission, continuing the long-standing policy of reviewing government employees’ salaries every five years.
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He also said that all pending Dearness Allowance (DA) and Dearness Relief (DR) arrears for employees and pensioners will be cleared. One instalment will be paid with the February salary, and the remaining dues with the March pay.
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In a major step for higher education, the Finance Minister announced free undergraduate education for arts and science students in the state, extending Kerala’s free education framework beyond Class 12 for the first time.
The state will also provide a sum of Rs 259.09 crore for the effective functioning of Universities working under the Higher Education Department. In a move to implement the recommendations of the Higher Education Council and the four-year degree programmes, the state will allocate a sum of Rs 851.46 crore.
Setting a new example, the Kerala government has announced an accident insurance scheme for students from classes 1-12. An annual sum of Rs 15 crore will be needed towards this, Finance Minister Balagopal announced.
The Finance Minister also announced a hike of Rs 1000 in the monthly honorarium for ASHA (Accredited Social Health Activists) workers. Anganwadi workers will also receive the same hike in payment, and Anganwadi helpers will get a monthly hike of Rs 500.
In a major public health intervention, the Finance Minister announced that victims of road accidents will receive free treatment for the first 5 days under the newly introduced “Life Saver” project. The scheme will be implemented in government hospitals and selected private hospitals, with an allocation of Rs 15 crore.
The budget also announced a new health insurance scheme for families not covered under the Karunya health scheme, with Rs 50 crore earmarked for the initiative.
Healthcare received significant attention with the announcement of ‘Medisep 2.0’, an upgraded version of the state’s flagship health insurance scheme for government employees, to be launched on February 1.
Similar insurance coverage on the Medisep model will be extended to pensioners, as well as employees of public sector undertakings and cooperative institutions.
The Finance Minister also announced Rs 400 crore for the Connect to Work scholarship scheme, which provides Rs 1,000 monthly financial assistance for up to a year to educated, unemployed youth aged 18-30.
Funds have been allocated to the Chief Minister’s Stree Suraksha scheme, a programme aimed at improving financial security for vulnerable women from economically weaker households. As part of this scheme, eligible women beneficiaries receive a monthly monetary aid of Rs 1,000. A total of Rs 3,820 crore has been allocated for this scheme.
In a move to cater to the modern needs of society, the budget proposed the setting up of a ‘Global School’ in the state. A sum of Rs 10 crores has been allocated for the project.
Launching a scathing attack on the Budget, opposition leader VD Satheesan alleged that the state’s fiscal credibility had been destroyed and that the LDF government was merely shifting its financial burden to the next dispensation.
Satheesan pointed out that for the past five months, the treasury has imposed restrictions preventing withdrawals of more than Rs 10 lakh, highlighting what he described as a severe cash crunch. Claiming that dearness allowance arrears alone amount to nearly Rs 1 lakh crore, Satheesan said the burden would fall on the government assuming office in May.
Indian Union Muslim League (IUML) leader PK Kunhalikutty termed the budget “the best document of a failed government.”
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