Thiruvananthapuram | UDF leaders on Friday welcomed the state Budget presented by Chief Minister V D Satheesan, who also holds the Finance portfolio, describing it as a development-oriented document focused on innovation, infrastructure and long-term economic transformation.
In a social media post, Congress MP Shashi Tharoor said the Budget sought to look beyond immediate challenges and position Kerala for the future despite fiscal constraints.
He particularly welcomed the emphasis on investment, innovation, logistics, technology and employment generation, as well as the focus on the knowledge economy, space economy and aviation sectors.
Tharoor described Mission Samudra as one of the most ambitious proposals in the Budget.
He said the initiative recognised Kerala's coastline as a strategic economic asset by integrating ports, logistics, manufacturing, waterways and coastal livelihoods.
He appreciated the emphasis on research, innovation and the space sector, and welcomed the recognition accorded to the silver economy, describing it as a forward-looking response to Kerala's demographic realities.
"Implementation will ultimately determine its success. But the vision outlined today provides a strong foundation for the years ahead," he said.
Transport Minister C P John welcomed the Budget's focus on coastal welfare, fisheries and transport infrastructure.
He highlighted allocations for the fisheries sector, proposals for the Poonthura Fishing Harbour and the Poonthura-Idayar bridge, tax concessions for stage carriage buses and tourist permit vehicles, and initiatives such as hydrofoil water transport and Mission Samudra.
In a Facebook post, Labour Minister Bindhu Krishna said the Budget contained several important projects for Kollam, including the proposed skyway and urban park at Chinnakada, development of Ashtamudi tourism, expansion of Kollam port and reconstruction of damaged roads.
She highlighted allocations of Rs 650.46 crore for the Labour Department, Rs 590.11 crore for Women and Child Development schemes, Rs 258.8 crore for Animal Husbandry and Rs 102.88 crore for Dairy Development.
Higher Education Minister Roji M John said the Budget envisaged transformative initiatives aimed at making Kerala a "globally recognised higher education hub."
He welcomed proposals such as the Kerala Knowledge Valley, Kerala Research Park, Tribal University in Wayanad, Indigenous Knowledge Zone, Siddharthan Students Distress App and Global Employment Observatory.
He said the initiatives would modernise Kerala's higher education sector and help institutions achieve "international standards".
Thiruvananthapuram | The revised Kerala Budget 2026-27 seeks to encourage the large-scale adoption of renewable energy, with Rs 100 crore allocated for the purpose.
Chief Minister V D Satheesan, in his maiden Budget speech, said that the prevailing global energy crisis, ecological challenges and severe environmental pollution caused by fossil fuels necessitate the adoption of renewable energy sources.
He said Kerala has numerous reservoirs that are well-suited for the deployment of floating solar panel systems.
The CM referred to pumped hydro energy storage as a promising technology for Kerala's future energy landscape.
"By converting renewable energy into green ammonia, green methanol and green hydrogen, Kerala can evolve into a Green Hydrogen Hub," he said.
"An amount of Rs 100 crore is allocated in the Budget for renewable energy, green hydrogen and alternative energy sources," the CM added.
Additionally, large-scale battery storage systems will be installed to meet peak power demand, and measures will be taken to establish community-based battery energy storage systems in all panchayats, he said.
The announcement comes at a time when the state is facing an acute shortage of electricity.
According to KSEB, electricity availability on power exchanges has declined sharply, making purchases difficult, while efforts to secure additional supplies through medium-term agreements have failed because of a nationwide shortage.
The CM said that Rs 1,284.75 crore has been allocated to the energy sector.
Of this, Rs 1,218.71 crore has been earmarked for the Kerala State Electricity Board through various funding sources for energy-sector development, while Rs 66.04 crore has been allocated for non-conventional and renewable energy projects.
A scheme titled '100 per cent Energy Self-Sufficient Cooperative Societies' will be implemented to promote the participation of the cooperative sector in harnessing Kerala's renewable energy potential, he said in his speech.
Thiruvananthapuram | The revised Kerala Budget 2026-27 prioritises the healthcare sector by reducing out-of-pocket expenditure, improving medical infrastructure and positioning the state as a 'health tourism' destination, Chief Minister V D Satheesan said on Friday.
In his Budget speech in the state assembly, Satheesan said that the government intends to revitalise the health sector by "aggressively ramping up investments" in it, and one of the steps in that direction was the 'Reach Kerala' scheme to transform the state into a destination for health tourism.
"As part of this initiative, steps will be taken to coordinate the activities of the Health, AYUSH, Tourism and other related departments to provide high-quality healthcare services," he said.
He announced an allocation of Rs 2,076.02 crore for medical care and public health, and said the government will take steps to reduce people's out-of-pocket expenditure on healthcare.
One of the steps outlined in the Budget to reduce treatment costs was to provide financial assistance for annual health check-ups for individuals aged 40 years and above, to detect and prevent diseases at an early stage.
Another is the 'Indira Guarantee' promise of providing health insurance coverage of Rs 25 lakh to every family in the state-to be implemented as the Oommen Chandy Health Insurance Scheme-for which Rs 10 crore has been allocated in the Budget.
The CM said that the condition of medical colleges at Kasaragod, Idukki, Wayanad and Manjeri continues to be poor, and steps will be taken to improve infrastructure, staffing and equipment at these institutions.
"The second medical college in Thiruvananthapuram will be made operational, and a new medical college will be established at Haripad. An allocation of Rs 100 crore is made for these purposes," he said.
Besides that, selected medical colleges will be granted autonomous status, and the government will support them to attain AIIMS-level standards in services and academic excellence, he said.
At a time when the state is witnessing an increase in communicable diseases, the CM said mechanisms will be created to strengthen coordination between the health department and the medical education department for the effective prevention and management of such ailments.
The Budget announced other initiatives: constituting a school health brigade to train students and the younger generation in healthy and hygienic lifestyles, and ensuring the availability of emergency and trauma care within the shortest possible time by implementing the 'Golden Hour Project'.
It also proposed improving the efficiency of medicine procurement by the Kerala Medical Services Corporation Limited (KMSCL).
Besides that, arrears under the Karunya Arogya Suraksha Scheme will be cleared in a phased manner to ensure its effective functioning, the CM said.
Tribal health clusters will be set up to improve healthcare services in tribal areas, while special coastal care units will be established to ensure medical care for people living in coastal areas.
Availability of medicines for rare diseases, including Spinal Muscular Atrophy (SMA), will also be ensured, he said.
Satheesan said hospital management committees and hospital development societies will be reformed to improve their efficiency and ensure that funds collected are properly utilised for the benefit of patients.
Steps will be taken to prevent excessive political interference in the administration of government hospitals.
Special schemes will be formulated for cancer patients, whose numbers are on the rise in the state, he added.
Additionally, mobile testing laboratories will be set up in rural areas lacking diagnostic facilities. Ten such labs will be established initially at a cost of Rs 2 crore each, with Rs 20 crore allocated for the purpose in the Budget, he said.
The CM said children with Type 1 diabetes will receive quality insulin, while eligible patients will be provided insulin pumps and continuous glucose monitoring sensors.
Thiruvananthapuram | Kerala Chief Minister V D Satheesan on Friday presented the UDF government's first Budget for 2026-27 in the Assembly, unveiling a mix of fiscal reforms, infrastructure projects and welfare initiatives aimed at reviving the state's economy while acknowledging the severe financial pressures facing the government.
The revised Budget, presented four months after the previous Left government tabled the Budget for the current financial year, reflects a Rs 20,500 crore shortfall in expected revenue compared with the estimates made in January 2026.
In the Budget, prepared against the backdrop of the White Paper released by his government, Satheesan, who also holds the Finance portfolio, said the state's accumulated liabilities, including those of the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pensions Limited, stand at Rs 87,012 crore.
Even while highlighting the financial stress, the Budget unveiled several ambitious development initiatives. The centrepiece is Mission Samudra, a maritime development programme that seeks to transform Kerala into a global maritime hub over the next five years with an allocation of Rs 400 crore.
The Budget also touched upon one of the five key Indira Guarantees promised by the UDF by announcing that initial steps would be taken to implement the Oommen Chandy Health Insurance Scheme, which proposes free health insurance cover of up to Rs 25 lakh for every family.
The main Opposition, the LDF, criticised the UDF government's Budget, alleging that its claim of a severe financial crisis was contradicted by the allocations announced in the document.
The BJP, meanwhile, alleged that the Budget was built on ambitious promises without a clear roadmap for implementation and resource mobilisation.
Satheesan said the aim of his government is to build a data-driven administrative system that will help accelerate the implementation of schemes and programmes and ensure that the benefits of development reach all Keralites while keeping people at the centre of governance.
He said the government's Mission Samudra project plans to leverage Kerala's 600-km coastline, two international seaports, one container transshipment terminal and 17 non-major ports to build a maritime economy centred on logistics, manufacturing and port-led development.
The state will be developed as an integrated "Port City" linking roads, railways, sea routes and inland waterways with manufacturing zones and greenfield cities, the chief minister said.
Manufacturing zones, stuffing centres and dry ports will be established near Vizhinjam and Kochi ports, while Vizhinjam will be developed as India's leading green bunkering port.
The Budget also proposes a Kerala Maritime Policy to strengthen port-led industries and logistics, besides promoting maritime tourism and education through public-private partnerships at the state's non-major ports.
Another major announcement is the creation of a Southern Kerala Economic Corridor connecting Thiruvananthapuram, Kollam and Alappuzha. An Invest Kerala Cell will function as a single-window platform to facilitate investors with land acquisition, statutory approvals and post-investment support.
Satheesan also announced plans to develop Kerala into South India's premier aviation-logistics hub centred around the state's four international airports, earmarking Rs 200 crore for preliminary infrastructure and planning activities.
To boost entrepreneurship, the government will launch the Kerala MSME Growth Scheme, targeting the establishment of around 10,000 micro, small and medium enterprises across the state with financial assistance and expert mentoring.
The Budget also promised to operationalise the second medical college in Thiruvananthapuram, establish a new medical college at Haripad and improve facilities at medical colleges in Kasaragod, Idukki, Wayanad and Manjeri.
The Budget also places emphasis on education and future skills.
It proposes establishing a Kerala Knowledge Valley to attract leading universities, reviving the semester in Kerala programme for international students, creating a Global Job Watch Tower to monitor changing employment trends and setting up a Future Readiness Think Tank focusing on artificial intelligence, quantum computing and biotechnology.
In the agriculture sector, the support price for rubber will be increased from Rs 200 to Rs 250, while a Krishi Sakhi-- Women Farmers Development Programme will be launched.
While many government employees had expected announcements on long-pending service benefits, the revised Budget stopped short of introducing major new concessions.
The Budget noted that KIIFB's reliance on off-budget borrowings at higher interest rates has increased the state's debt burden and created macroeconomic concerns. To address the issue, the government announced the constitution of an Expert Committee to recommend structural reforms and overhaul KIIFB's operational framework.
Criticising the budget, Leader of Opposition in the Kerala Assembly, Pinarayi Vijayan said a Budget should present a broader vision for Kerala's future development, with elements aligned with the government's 'New Kerala' narrative.
"Several announcements appeared to be repackaged versions of schemes announced by the LDF government under different names," he alleged.
BJP state president Rajeev Chandrasekhar said the Budget was rich in announcements but lacked clarity on how the government planned to finance the various projects and welfare schemes proposed in it.
Thiruvananthapuram | The tourism sector received a major boost in the revised Kerala budget for 2026-27 on Friday with an allocation of Rs 325.36 crore and a series of projects aimed at strengthening hospitality, heritage, eco-tourism and medical tourism.
Presenting his maiden budget, Chief Minister V D Satheesan said steps would be taken to make tourism a priority sector in the state.
He announced that measures would be initiated to declare tourism as an industry so that all incentives available to industries could also be extended to the tourism sector.
"Necessary amendments to existing laws would be brought in to enable the use of more land in plantation areas for tourism purposes," he said.
Satheesan said tourism amenity centres and houseboat terminals constructed under the Mega Tourism Circuit Project in Alappuzha district with central assistance during the UPA government period would be renovated and put to effective use.
A waste treatment plant would also be established in Alappuzha for treatment of houseboat waste and other waste generated by tourism activities, he said.
The chief minister announced a Pilgrimage Tourism Circuit Project in Alappuzha connecting destinations, including Arthunkal Basilica, Ambalappuzha Temple, Kakkazham Mosque, Mannarasala, Krishnapuram Palace, Mata Amritanandamayi Math and Ochira Temple.
"A master plan-based project would be implemented for the comprehensive development of the Pathiramanal Island Eco-Tourism Centre. Ropeway facilities connecting Muhamma Jetty and the island would also be introduced," he added.
The government allocated Rs 19 crore for the Muziris Tourism Project.
"The Muziris Tourism Project will be expanded and transformed into India's foremost heritage tourism destination by promoting environmentally sustainable tourism while preserving the ancient monuments in the project area. The project will include a live museum, heritage museums and boat journeys through traditional waterways. A total allocation of Rs 19 crore is made for this project," Satheesan said.
A pilot "Green Marshals" scheme will be introduced in major tourist destinations, including Fort Kochi, Munnar, Kovalam and Alappuzha, he said.
"Under the programme, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behaviour and environmental awareness," he said.
Satheesan said the government would place greater emphasis on eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri-tourism and rural experiential tourism.
In addition, community-based tourism hubs and cultural tourism hubs will be established to generate employment while preserving Kerala's unique heritage, food culture and cultural traditions.
"The 'Brand Wayanad' concept will be introduced. Ashtamudi tourism will be promoted. Women-led tourism enterprises, homestays and responsible tourism projects will be expanded across the state. Smart tourism applications, including AI-enabled advanced digital tourism platforms, will be developed," he said.
The budget also announced schemes to promote academic tourism by attracting students from abroad to Kerala.
An International Maritime Museum, envisioned as the anchor of Kerala's maritime tourism sector, will be established with an allocation of Rs 50 crore.
The budget further proposed measures to promote farm tourism and dam tourism initiatives across the state.
Thiruvananthapuram | BJP MLAs on Friday criticised the UDF government's maiden Budget, alleging that it was built on ambitious promises without a clear roadmap for implementation and resource mobilisation.
In a social media post, BJP state president Rajeev Chandrasekhar said the Budget was rich in announcements but lacked clarity on how the government planned to finance the various projects and welfare schemes proposed in it.
He alleged that Kerala was already burdened with a debt of Rs 5.07 lakh crore and questioned how the state would raise funds for the new initiatives.
Chandrasekhar claimed that three of the five 'Indira Guarantee' promises made by Congress leader Rahul Gandhi during the Assembly election campaign had not been meaningfully reflected in the Budget.
Referring to the promise of providing health insurance coverage of Rs 25 lakh to every family, he alleged that only Rs 10 crore had been earmarked for the scheme.
"With around 90 lakh families in Kerala, this works out to about Rs 11 per family. The Congress government has deceived the people," he alleged.
The BJP leader claimed that the government's promise to increase welfare pensions to Rs 3,000 per month had not been fulfilled.
He alleged that the proposed loan scheme of up to Rs 5 lakh for youth had remained only a promise.
According to Chandrasekhar, making promises that are never implemented has become a hallmark of Congress politics.
The Nemom MLA also criticised what he described as attempts to promote large-scale privatisation of public sector institutions and state assets through the Budget.
"People of Kerala need fiscal discipline, corruption-free governance and genuine development, not political fantasies," he said.
Chandrasekhar attacked both the Congress and the CPI(M), alleging that the previous LDF government had weakened the state's economy and that the two fronts now represented similar approaches to governance.
He argued that Kerala needed the BJP-led NDA's vision of a 'Viksita (developed) Keralam' and said his party would closely monitor the implementation of each Budget announcement.
BJP MLA B B Gopakumar, at a press conference, said that despite a change in government, there was little difference between the two major political fronts in their policy orientation and economic outlook.
"Only the people occupying the seats have changed. There is no substantial change in the policies or economic approach of the two fronts," he said.
Gopakumar claimed that decades of governance by the UDF and the LDF had left Kerala grappling with serious financial challenges and lacking a clear developmental direction.
Referring to the state's finances, he said the government had not provided sufficient clarity regarding public debt and liabilities despite acknowledging the difficult fiscal situation in its policy document.
The BJP leader raised concerns about the role of the Kerala Infrastructure Investment Fund Board (KIIFB), arguing that a body outside the constitutional framework continued to play a major role in managing the state's finances.
He questioned the legal and financial implications of such an arrangement and said the Budget had failed to adequately address Kerala's long-term fiscal concerns.
According to Gopakumar, the document did not offer convincing solutions to the state's economic challenges and left several key questions regarding financial management unanswered.
BJP MLA V Muraleedharan also questioned the government's claim that the Budget would lay the foundation for a 'New Kerala', alleging that the proposals outlined in the document lacked a credible implementation framework.
"The CM has described this as a Budget for creating a New Kerala. However, after listening to the entire speech, it appears that the New Kerala exists only in the Budget paper. The proposals announced are unlikely to create such a transformation on the ground," he told reporters.
Thiruvananthapuram | Leader of Opposition in Kerala Assembly Pinarayi Vijayan on Friday criticised the UDF government's Budget, alleging that its claim of a severe financial crisis was contradicted by the allocations announced in the document.
Addressing reporters after the Budget presentation, Vijayan said the government's repeated claims of a severe financial crisis were difficult to reconcile with the additional allocations announced in the Budget.
If the state is able to provide more than Rs 2,000 crore in additional allocations, it cannot simultaneously argue that the financial situation is extremely alarming," he said.
The CPI(M) leader contended that the previous LDF government had left substantial funds in the treasury and that the resources could have been utilised for more welfare measures and development initiatives.
Vijayan alleged that allocations for several sectors had either been reduced or fallen short of expectations.
He expressed disappointment over the absence of fresh relief measures for farmers engaged in rubber, coconut and paddy cultivation, saying the Budget did little to address the challenges faced by the agricultural sector.
"The Budget had not adequately addressed the impact of union government policies on Kerala. The state government is overlooking key issues affecting the state while focusing on criticism of the previous administration," he said.
Vijayan said a Budget should present a broader vision for Kerala's future development, with elements aligned with the government's 'New Kerala' narrative.
"Several announcements appeared to be repackaged versions of schemes announced by the LDF government under different names," he alleged.
He said the government had missed an opportunity to strengthen welfare and poverty-alleviation programmes despite having sufficient financial resources.
According to him, additional funds could have been utilised for measures aimed at improving the living conditions of vulnerable sections and providing greater relief to people facing economic hardship.
Vijayan further questioned the government's approach towards the liquor sector, alleging that while the LDF government had focused on producing alcohol from fruits and agricultural produce - benefiting farmers and small-scale entrepreneurs through value-added goods - the latest Budget appeared to favour large liquor manufacturers.
Vijayan said the Budget failed to address several concerns affecting the state's economy and farming community, raising questions about the government's priorities.
He alleged that the UDF government's maiden Budget continued a policy approach that accorded significant importance to the private sector and reflected several priorities outlined earlier by the union government.
"The thrust given to the private sector in the Budget is in line with the approach adopted by the Centre. Several proposals announced by the Union government with regard to economic development and investment are being echoed in the state's Budget," he alleged.
Referring to proposals related to the mining and critical minerals sector, Vijayan claimed that the Budget marked a departure from the approach pursued by the previous LDF government.
He alleged that while the LDF had advocated development based on environmental sustainability and public interest, the new proposals appeared to be aligned with the Centre's policies favouring greater private-sector participation.
The opposition leader voiced concerns that the government's 'Vision Samudra' initiative and the proposed Kerala Maritime Policy could pave the way for increased private-sector control over coastal resources.
He said apprehensions were being raised about whether the state's coastline and maritime assets could gradually come under greater private influence through such policies.
Vijayan linked the proposed South Kerala Economic Corridor to what he described as a broader development agenda centred on private investment.
Pointing to what he claimed was a reduction in allocations for the fisheries sector, he said coastal communities had reason to fear their interests were being sidelined while other agendas were being pursued.
"The reduction in support for fisheries raises questions about whether the concerns of coastal residents are receiving adequate attention," he said.
Thiruvananthapuram | The revised Kerala Budget for 2026-27 allocated close to Rs 1,500 crore to the general education sector to improve the quality and academic standards of government-run schools in the state.
It also outlines steps to promote and ensure menstrual hygiene among girls as well as encourage scientific awareness among students to transform Kerala into a global knowledge hub.
Chief Minister V D Satheesan said that under the 'Menstrual Hygiene Initiative for Empowering Girls' availability of sanitary napkins to all girls will be ensured and facilities will be provided for their safe and environmentally friendly disposal.
The other objectives of the scheme are to maintain clean and hygienic school toilets, create girl-friendly campuses, generate awareness, conduct workshops and ensure state and district-level monitoring, he said.
In order to promote scientific awareness among students and transform Kerala into a global knowledge hub, a new scheme titled 'Jawaharlal Nehru Centre for Scientific Temper' will be introduced, the CM said.
"An allocation of Rs 25 crore is made for this scheme," he added.
Satheesan, while on the subject of general education, also emphasised the participation of children in sports and games and said that it will be made a part of the school curriculum.
"As part of that, an allocation of Rs eight crore has been made in the Budget for improving physical fitness through progressive and sustainable infrastructure and for nurturing future sporting talent," he said.
Thiruvananthapuram | The revised Kerala Budget 2026-27 on Friday introduced an app and proposed a law to prevent ragging in educational institutions to honour 20-year-old veterinary student J S Sidharthan, who allegedly died by suicide in his college hostel in Wayanad two years ago after being ragged by fellow students.
"To prevent ragging in educational institutions in Kerala, the 'Sidharthan Student Distress App' will be introduced, and the 'Sidharthan Anti-Ragging and Student Welfare Act' will be enacted to prevent ragging and ensure student welfare," Chief Minister V D Satheesan said in his Budget speech in the Assembly.
Sidharthan, a first year student of the College of Veterinary and Animal Sciences at Pookkode in Wayanad was found hanging in his college hostel's bathroom on February 18, 2024.
His death had sparked widespread outrage and a major political storm in the state as the student's family alleged that CPI(M) activists were involved in ragging him.
Following the political uproar, the then LDF government handed over the probe to the CBI as demanded by the student's family.
The Congress-led UDF had accused the Left government in Kerala and the police of trying to save those responsible for the death of the student by delaying the transfer of the case to the CBI.
Similar allegations were made by the BJP and Sidharthan's family as well.
Thiruvananthapuram | Chief Minister V D Satheesan on Friday allocated Rs 192.20 crore for measures to mitigate human-wildlife conflict, one of the most pressing issues facing Kerala's hilly regions, in his maiden budget presented in the Assembly.
The revised Kerala Budget 2026-27 earmarked a total of Rs 243.43 crore for forest and wildlife protection activities.
Presenting the budget, Satheesan said farmers and residents living in forest fringe areas continue to face serious threats from wild animal attacks.
"Farmers and other residents in the hilly regions of the state are under constant threat from wild animal attacks. A scientific census of tigers and leopards in Kerala will be conducted and legally permissible measures will be taken for their relocation. The possibilities offered by modern technology will be utilised to mitigate human-wildlife conflict. An amount of Rs 192.20 crore is allocated for this purpose," he said.
The chief minister also announced that additional Rapid Response Teams (RRTs) would be deployed in areas severely affected by wildlife threats.
Human-wildlife conflict has emerged as a major concern in Kerala, with six persons losing their lives in wild animal attacks in different parts of the state this month alone.
The budget also set aside Rs 22.02 crore for environmental conservation activities.
Satheesan said the government would implement a "Zero Tolerance" policy to prevent air, water, land and light pollution.
"Kerala will be made a completely carbon-neutral state by 2050. Agricultural practices that increase soil carbon and carbon sequestration will be promoted, and a state-level mechanism will be established to enable farmers to claim carbon credits and secure direct financial benefits," he said.
Thiruvananthapuram | The current UDF government's maiden budget on Friday accorded priority to women's safety and anti-narcotics initiatives, announcing a series of measures for the Police and Excise departments, including enhanced surveillance, anti-drug operations and women-centric safety programmes.
Presenting the revised Kerala Budget 2026-27, Chief Minister V D Satheesan said strict action would be taken against crimes targeting women and children.
As part of the measures, more women will be appointed as Station House Officers in police stations across the state.
"Measures will be taken to appoint more women as Station House Officers in police stations. Strong and stringent legal action will be initiated against officials who suppress cases involving crimes against women and children, as well as against individuals who abuse women through social media platforms. Safe travel for women will be ensured, and night-time police patrolling in major towns will be intensified," he said.
A special scheme titled 'Makalkkoppam' will also be implemented to prevent crimes against women.
The budget also earmarked funds to strengthen the state's fight against narcotics, a key promise made by the UDF during the Assembly elections.
An allocation of Rs 10 crore was made for Operation Toofan, the Kerala Police initiative aimed at curbing drug trafficking and abuse.
Describing the project, Satheesan said it was a state government initiative aimed at eradicating drug mafias by implementing a special task action protocol to reduce drug availability and strengthen preventive systems in schools and colleges.
The chief minister said the Kerala Police would further intensify anti-drug operations through the Anti-Narcotic Task Force (ANTF), District Anti-Narcotic Special Action Force (DANSAF) and Special Operations Group (SOG).
Drug-free campus initiatives, dark-web monitoring, financial investigations linked to narcotics trafficking and awareness programmes will be implemented in collaboration with educational institutions, local self-government bodies and Parent-Teacher Associations (PTAs), he said.
The budget allocated Rs 23.31 crore for the Excise Department.
Satheesan said anti-drug campaigns would be organised under the Vimukthi Mission to create awareness among students, youth and the general public about the harmful effects of substance abuse and alcoholism.
A dedicated Chemical Examination Laboratory will be established and infrastructure facilities will be provided to the State Narcotic Control Bureau under the Excise Department.
The government also announced the installation of AI-enabled CCTV cameras and X-ray and Gamma-ray scanners at all check posts to prevent drug trafficking.
Drug detection kits capable of identifying all types of narcotic substances, including new-generation synthetic drugs, will be made available in all Excise offices.
The budget further proposed strengthening prison infrastructure and rehabilitation programmes under the Prison Modernisation and Prisoners' Welfare schemes.
To address overcrowding in jails, prison construction and expansion projects at Mannarkkad, Taliparamba, Pathanamthitta and other locations will be taken up on a priority basis.
The government also announced that priority would be given to the modernisation and strengthening of emergency response systems, including establishing fire and rescue stations in various Assembly constituencies, operationalising new stations in Wayanad district and deploying emergency rescue teams along National Highway 66.
Thiruvananthapuram | The revised Kerala Budget 2026-27 presented in the Assembly on Friday noted that youth in the state were migrating in search of education and employment, leading to a decline in the southern state's demographic dividend and announced steps to revitalise the education sector and create more jobs for the younger generation.
In his Budget speech, Chief Minister V D Satheesan said that the youth population, which constitutes the state's demographic dividend, was steadily declining as a proportion of the total population.
"Simultaneously, our youth are migrating to foreign countries in search of employment. Instead of letting our youth migrate out of sheer necessity, we must provide them with quality education and employment opportunities here, integrating them as active partners in the state's development to bolster our economy," he said.
One step in that direction will be the establishment of the 'Global Job Watch Tower' -- a state-level future skills and employment intelligence mission -- which will equip the youth for the rapidly evolving global economy, he said.
It will also closely align the state's education and skill-development ecosystems with future employment landscapes, he added.
Satheesan, who also holds the Finance portfolio, further said that the mission will track emerging employment trends globally and domestically, identify requisite future skills, provide strategic guidelines for curriculum overhauls, and strengthen industry-academia partnerships.
He said that it will place a special emphasis on Artificial Intelligence (AI), digital technologies, advanced manufacturing, healthcare, the green economy, logistics, tourism, and international labour markets and allocated Rs two crore for the preliminary phase of the project.
In order to transform Kerala into a premier destination for higher education and reverse the ongoing trend of students migrating outside the state for high quality learning, the 'Kerala Knowledge Valley' will be established, he said.
The CM said that under the initiative, the state will be transformed into a world-class higher education hub, which will bring together the most contemporary academic programmes, state-of-the-art research parks, and dynamic centers of excellence under one umbrella.
"Guided by a specialised legislative framework, this educational metropolis will be designed to attract leading universities -- dominating both global and national rankings -- as well as world-renowned legacy universities," he said.
He said that the Kerala Knowledge Valley will create a vibrant and self-sustaining ecosystem where students can access worldclass opportunities in the state itself, elevating it into the "intellectual capital of Asia".
"To facilitate this, timely amendments to the Private University Bill will be implemented on a war footing. An amount of Rs 100 crore is allocated for this project," the CM said.
In addition to these, the Budget also announced a Wayanad Tribal University and Indigenous Knowledge Zone aimed at promoting educational advancement, research, innovation, and socio-economic transformation and allocated Rs 50 crore for it.
A Culinary Institute will also be set up in the state, for which Rs two crore has been allocated, to introduce Kerala's unique culinary art and taste to the world, Satheesan said.
The institute will also provide training and education in culinary arts, bakery, hotel management, food production, and food safety, he said.
Besides these, a 'Future Readiness Think Tank' will be constituted to anticipate and utilise the opportunities offered by advanced technologies including AI, Quantum Computing and Biotechnology and the 'Semester in Kerala' programme, which provides opportunities for foreign students to study in the state, will be revived to strengthen academic tourism, he said.
He also announced an allocation of Rs 232.11 crore for Technical Education.
The Budget also outlined steps to prevent ragging, campus violence and political interference in higher educational institutions.
"An Academic Council will be constituted to prevent excessive political interference in academic matters," it said.
Thiruvananthapuram | The revised Kerala Budget for 2026-27 presented in the Assembly by Chief Minister V D Satheesan on Friday contained only one literary and historical reference, a quote from former Prime Minister Jawaharlal Nehru's iconic "Tryst with Destiny" address.
Expectations were high that Satheesan, known for his interest in books and literature, in his maiden budget speech would feature multiple literary quotations and cultural references, similar to those often included by Union Finance Minister Nirmala Sitharaman and former Kerala Finance Minister T M Thomas Isaac.
However, the chief minister, who has often described himself as a Nehruvian Left politician, chose to include only a reference to Nehru's famous speech delivered on the eve of India's Independence.
"Sir, in the world-famous speech, 'Tryst with Destiny', Pandit Jawaharlal Nehru dreamed of a modern, equitable and prosperous country. Let us keep these words in our hearts," Satheesan said while concluding his budget speech.
He then read out a portion of the address.
"The future beckons us. Whither do we go and what shall be our endeavour? To bring freedom and opportunity to the common man, to the peasants and workers of India; to fight and end poverty and ignorance and disease; to build up a prosperous, democratic and progressive nation, and to create social, political and economic institutions which will ensure justice and fullness of life to every man and woman," he quoted.
Thiruvananthapuram | Chief Minister V D Satheesan on Friday announced a Rs 50 crore initiative for Generation-Z, describing the digitally native generation as a key driver of Kerala's future economy and innovation ecosystem.
Presenting his maiden budget in the Assembly, Satheesan said Generation-Z was among the forces rapidly transforming the world.
According to him, those born and raised in the digital age have technology as an integral part of their lives and are quick to adopt emerging technologies.
"Gen Z is the fastest demographic to adopt and utilise breakthroughs in fields such as Artificial Intelligence, Robotics, Data Science, Internet of Things (IoT), and Virtual Reality (VR). The creative abilities and technological excellence of the younger generation can be brought together to develop Kerala's startups, innovation hubs, research centres and smart industries, while emphasising digital ethics, privacy protection, cyber security and core human values," he said in the revised state Budget in the Assembly.
"By striving to develop technological solutions to complex problems and create systemic changes, this generation will become an important driving force of the future economy and industries. An amount of Rs 50 crore is allocated for this purpose," he added.
The budget also announced a Malayalam AI Initiative with an allocation of Rs 10 crore.
"Kerala will launch a Malayalam AI Initiative -- funding an open Malayalam dataset, free for all, and supporting the development of Malayalam AI models that innovators can take to market. An amount of Rs 10 crore is allocated for this," Satheesan said.
The budget further proposed facilities for screening short films and documentaries by Gen-Z creators and for presenting contemporary dance and music performances at the proposed M T Vasudevan Nair Cultural Park in Kozhikode.
Thiruvananthapuram | Kerala Chief Minister V D Satheesan on Friday announced a series of tax relief measures, amnesty schemes and revisions to vehicle taxes while presenting the revised state Budget in the Assembly, saying the steps are aimed at easing the burden on taxpayers, supporting businesses and improving revenue mobilisation.
The revised Budget estimates for 2026-27 project revenue receipts of Rs 1,69,646.37 crore against revenue expenditure of Rs 2,05,001.67 crore, resulting in a revenue deficit of Rs 35,355.30 crore.
The Budget estimates capital expenditure (Net) at Rs 19,651.41 crore, public debt (Net) at Rs 52,364.13 crore, and an overall deficit of Rs 41.23 crore. The government has also announced additional expenditure of Rs 1,080.95 crore, taking the cumulative deficit at the end of the year to Rs 1,504.63 crore.
One of the key tax relief announcements was the Flood Cess Arrears Settlement Scheme, 2026.
The chief minister, who holds finance portfolio, noted that although the one per cent Flood Cess levied on GST for Business-to-Customer (B2C) supplies between August 1, 2019 and July 31, 2021 had ended, substantial arrears remained unpaid.
To help businesses clear these dues, the government announced that taxpayers who pay the entire outstanding principal amount of Flood Cess will receive a complete waiver of interest and penalty.
The last date to settle arrears under the scheme is March 31, 2027.
The government also unveiled a Small Arrear Waiver Scheme, 2026 for pending dues under pre-GST tax laws.
Under the proposal, arrears involving tax amounts of more than Rs 50,000 but not exceeding Rs 2 lakh relating to assessment orders up to the 2017-18 financial year will be fully waived along with the related interest and penalty.
However, the concession will not apply to arrears linked to the sale of liquor under the Kerala General Sales Tax Act, 1963.
In the liquor sector, the Budget proposed fresh sales tax rates for low-strength alcoholic beverages under the Kerala General Sales Tax Act.
Products with 0.5 per cent to 10 per cent alcohol by volume (v/v) will attract 120 per cent sales tax, while those with more than 10 per cent and up to 20 per cent alcohol by volume will be taxed at 175 per cent.
The Budget also announced changes in motor vehicle taxation to support public transport and promote electric mobility.
Quarterly tax on All India Tourist Permit (AITP) buses has been sharply reduced, with the rate per seat cut from Rs 2,000 to Rs 900 and the rate per sleeper reduced from Rs 3,000 to Rs 1,500.
The government said the move is intended to encourage more AITP buses to register in Kerala and improve inter-state travel.
For trailer vehicles, the additional tax slab applicable to vehicles weighing above 20,000 kg has been removed, bringing them under the same tax structure as trailers above 15,000 kg.
Road tax on electric vehicles has also been revised. Vehicles priced up to Rs 10 lakh will now attract 3 per cent tax instead of 5 per cent, while those costing between Rs 15 lakh and Rs 20 lakh will see the rate reduced from 8 per cent to 5 per cent.
Tax on electric vehicles priced above Rs 40 lakh has been increased from 10 per cent to 15 per cent, while other slabs remain unchanged.
The government further enhanced the motor vehicle tax concession for differently-abled persons by increasing the eligible vehicle value limit from Rs 7 lakh to Rs 15 lakh.
An e-challan Amnesty Scheme was also announced, allowing citizens to settle pending traffic challans by paying 50 per cent of the challan amount.
In the Registration Department, the government proposed a One-Time Settlement Scheme to dispose of 1,46,355 undervaluation cases involving around Rs 703 crore in deficit stamp duty dues accumulated between 1986 and 2023.
As a one-time measure, additional stamp duty will be waived in cases relating to the period up to March 31, 2010, where the amount determined in the final order is below Rs 10,000.
The Budget also extended the existing 4 per cent concessional stamp duty available for eligible flats and apartments to Kerala Real Estate Regulatory Authority (K-RERA)-registered villas that comply with prescribed standards.
Additionally, if deficit stamp duty determined in an undervaluation case remains unpaid even after all appellate remedies are exhausted, and payment is not made within 60 days of the final order, interest at 1 per cent per month (12 per cent per annum) will be charged until payment.
Thiruvananthapuram | The revised Kerala Budget for 2026-27 presented in the Assembly by Chief Minister V D Satheesan on Friday gave a major push to the sports and cultural sectors, announcing projects, including an international-standard football stadium in Malabar, a film city in Kochi and a cultural park in Kozhikode.
In a move likely to enthuse football fans, especially in north Kerala, Satheesan announced the construction of a world-class football stadium in the Malabar region and allocated Rs 50 crore for the project.
Referring to the state's passion for football, he said a world-class stadium was essential to systematically identify and train football talent and host prestigious international matches.
"Recognising the immense passion and profound love for the game among football fans in Kerala, an international standard football stadium equipped with ultra-modern facilities will be constructed in the Malabar region. An amount of Rs 50 crore is allocated for this project," he said.
In the first budget of the UDF government after coming to power, Satheesan also announced 'Vision 2036', an initiative aimed at nurturing athletes for the 2036 Olympic Games.
Under the programme, children with exceptional sporting talent will be identified and provided intensive training to enable participation in national, international and Olympic competitions, he said.
The budget also proposed steps to construct an international stadium at Chelad near Kothamangalam in Ernakulam district.
The cultural sector received a significant boost with announcements, including the J C Daniel International Film City-Chitranagaram in Kochi, M T Vasudevan Nair Cultural Park in Kozhikode and a music academy in memory of renowned ghazal singer Umbayi.
The film city project, for which Rs 100 crore has been earmarked, is aimed at strengthening the Malayalam film industry.
"Granting formal industry status to cinema, creating a permanent venue for the international film festival, forming robust anti-piracy cells and cultivating an environment to attract premier national and international film productions are targeted through this project," Satheesan said.
The government also announced the establishment of a cultural park in Kozhikode in memory of noted litterateur M T Vasudevan Nair, allocating Rs 50 crore for the initiative.
The park will feature facilities for traditional art forms, including Kathakali, Koothu, Thullal, Theyyam, Oppana, Mappilappattu, Margamkali, Ayanippattu and various tribal art forms.
Satheesan said that the park will also have spaces for screening short films and documentaries by Gen-Z creators, contemporary dance and music performances, cinema theatres, a library, an art exhibition hall, an art gallery, a history museum, a literature-language museum, a voice museum archiving writers and other eminent personalities, dedicated zones for children and senior citizens, recreational spaces, food courts, bookshops, art material shops, tourist guest houses and dormitories.
"A dedicated Cultural-Tourism Trust will be formed for the professional management of this cultural park," the chief minister said.
Reacting to the announcement, Aswathy Nair, daughter of M T Vasudevan Nair, said she was happy that the Kerala government had decided to establish a cultural and literary park in honour of her father.
She said her father had never wanted a memorial and had often maintained that his books and films would keep his memory alive.
However, she recalled discussions with him about creating a unique centre for culture and literature featuring a large library, reading spaces, performance theatres, film theatres and bookshops.
"It was after a lot of thought that I had presented this idea to the government a few weeks ago and frankly, I am surprised and grateful that they approved the idea so quickly. Looking forward to seeing this materialise. And that too in Kozhikode, his favourite place. Thanks to Chief Minister V D Satheesan," she said in a Facebook post.
Among other allocations, Rs 10 crore was earmarked for renovation of the historic Thekkinkadu Maidan in Thrissur district.
An amount of Rs 1 crore was allocated for establishing the Aranmula Kannadi Exclusive Exhibition Centre and Training Centre.
To preserve the memory of Saint Chavara, Rs 1 crore was allocated for continuation of construction works relating to the 175-year-old room, monastery building and historical and cultural museum at the Koonammavu.
The annual grant provided to the 52 Palliyodams, the main organisers of the Aranmula Boat Race, was increased from Rs 10,000 to Rs 15,000.
The government also announced the organisation of the Malabar-Thindis Cultural Biennale centred at Ponnani.
An amount of Rs 1 crore was provided as grant to establish a cultural centre and museum in memory of artist Namboothiri with the assistance of the Namboothiri Trust.
Satheesan also announced that Rs 1 crore has been allocated for the construction of a memorial to the late actor Salim Kumar in Ernakulam district.
A sum of Rs 1 crore will be provided as initial expenses to establish a music academy in memory of renowned ghazal singer Umbayi.
The budget also earmarked Rs 1 crore for setting up a statue and cultural centre dedicated to Sree Narayana Guru in Delhi.
As part of the 150th birth anniversary celebrations of Mahakavi Ulloor S Parameswara Iyer, a special financial assistance of Rs 25 lakh was announced for the Ulloor Memorial Library and Research Institute, Satheesan said.
Further, Rs 1 crore was allocated to the R Shankar Foundation of Kerala for the construction of a memorial building for former chief minister R Sankar at Pattom, here.
Thiruvananthapuram | The revised Kerala Budget for 2026-27 presented in the Assembly on Friday said that reforms will be made in the land laws to give a boost to the industrial infrastructure aspirations of the state by harnessing its land resources.
Chief Minister V D Satheesan, in his Budget speech, said that acute scarcity of land, limitations in its mobilisation and a lack of legal clarity constitute the most formidable barriers to Kerala's industrial infrastructure aspirations.
He said that while investors were actively seeking land for projects capable of transforming the economy, vast tracts of land held by government departments and public sector undertakings were lying around "unutilised or entangled in red tape".
"To systematically address this structural challenge, the government will formulate a comprehensive land management policy," the CM, who also holds the Finance portfolio, said.
As part of the policy, a robust land management framework will be established, supported by necessary legislation, to create a land bank utilising surplus and unused land parcels belonging to various departments and public sector undertakings, he said.
Besides that, land laws that were relevant in the past will be rigorously reviewed, and outdated statutes will be amended under the Land Reforms 2.0, he added.
Additionally, the procedure for converting land for commercial enterprises will be expedited and a land pooling framework will be introduced for large-scale projects, the CM said.
He said that government agencies like Kerala Industrial Infrastructure Development Corporation (KINFRA) and Infrastructure Kerala Limited (INKEL) will be empowered to handle land acquisition processes and subsequent activities in a timely, transparent, and professional manner.
"This policy will be instrumental in harnessing our land resources for the prosperity of Kerala's economic future and its people," he said.
Revised Budget pledges 'New Kerala' with inclusive growth, sustainable development
Thiruvananthapuram | Kerala Chief Minister V D Satheesan, who also holds the Finance portfolio, on Friday presented the revised Budget for 2026 27 in the Assembly, pledging to build a "New Kerala" with inclusive growth and sustainable infrastructure development.
Citing severe fiscal stress, hidden liabilities, lower remittances and inflation as key challenges before the government, the CM unveiled Mission Samudra to build a port-led economy, elevate the state as a global maritime and economic hub.
The government is committed to stimulating the economy through broad-based development strategies, attracting large-scale investments across various sectors, mobilising financial resources for the public exchequer, and ensuring the equitable distribution of wealth, the CM said.
"To achieve these objectives, the government has outlined flagship initiatives," he said.
By integrating Kerala's 600-kilometre coastline, two international ports, one container transshipment terminal, 17 non-major ports, and numerous other water-based resources, the government aims to establish Kerala as a major presence on the global maritime map within the next five years.
The vision is to transform Kerala into a port-led economy by developing a maritime ecosystem that connects roads, seaports, railways, inland waterways, industrial zones, and greenfield cities, he said.
The CM said that Rs 400 crore will be allocated to the Mission Samudra project.
Satheesan said that the government was committed to stimulating the economy through broad-based development strategies and announced Rs 200 crore for turning the state into an aviation and logistic hub centered around its four airports.
Besides that, the government will also launch a Data-based Invest Kerala cell to attract investment by addressing key business bottlenecks, the CM said in his Budget speech.
Fulfilling one of its key Indira Guarantee promises, the government allocated Rs 10 crore in the Budget for the Oommen Chandy Health Insurance Scheme, which provides health insurance coverage of Rs 25 lakh to every family in the state.
The Budget also allocated Rs 600 crore for free travel for women and transgender persons on KSRTC buses under another Indira Guarantee initiative, the first phase of which was rolled out recently.
It also allocated Rs 10 crore as part of developing a silver economy for the welfare of the elderly population of the state, Rs 20 crore for the preliminary work to set up light metros in Thiruvananthapuram and Kozhikode, Rs 50 crore for setting up a football stadium of international standards in the Malabar region and increased the minimum support price for rubber from Rs 200 to Rs 250.
Satheesan also said that the project plan fund has been revised to Rs 30,300 crore from the earlier Rs 35,000 crore announced by the LDF administration and announced an increase in the financial packages for the SC/ST and backward classes.
