KOCHI: Chief minister and finance minister VD Satheesan began presenting the Kerala Budget in the assembly on Friday, outlining the UDF government’s economic priorities amid mounting fiscal challenges and expectations of welfare-focused announcements.The budget is being closely watched as it is the first full financial statement of the new UDF government and is expected to reveal how it plans to balance its ambitious welfare agenda with the state’s strained finances.Among the key announcements expected are measures related to the UDF’s flagship Indira Guarantees, the future course of the Kerala Infrastructure Investment Fund Board (KIIFB), and a promised “surprise” for government employees.Ahead of the budget, former finance minister K N Balagopal raised concerns over the Centre’s decision not to provide a Revenue Deficit Grant (RDG) to Kerala following the recommendations of the 16th Finance Commission.Balagopal said Kerala had expected a substantial RDG allocation and had factored it into its financial planning. According to him, the state had estimated receiving Rs 14,138 crore as the first instalment during the current financial year.Health tourism, maritime development and equitable growth among key focus areas of Kerala government’s visionKerala Budget 2026-27 Highlights: Health tourism, maritime development and equitable growth among key focus areas
- The government plans to develop Kerala into a major health destination.
- A study will be conducted to understand Kerala’s demographic changes, particularly in light of the increasing migration of young people from the state.
- The state will focus on the equitable distribution of wealth.
- Seventeen ports across the state will be integrated under Mission Samudra.
- Job reservations will be provided for people residing near the ports that are to be developed.
- Kerala will formulate a maritime policy and work towards developing itself into a leading port-based economy and maritime hub.
Kerala Budget 2026-27 Highlights: Mission Samudra gets Rs 400 crore boost
- Green bunkering service to ensure low-carbon fuel supply for the maritime industry will be introduced in Vizhinjam, announces Chief
Minister VD Satheesan . - Rs 400 crore has been allocated to Mission Samudra.
- An International Maritime Museum will be set up.
- Kerala’s maritime history, heritage and traditional shipbuilding capabilities will be promoted.
Kerala Budget 2026-27 Highlights: Maritime policy, coastal rail network and aviation hub among Kerala’s major infrastructure initiatives
- A new maritime policy will be introduced to strengthen the blue economy, with Kollam, Alappuzha and Thiruvananthapuram being developed as an economic corridor.
- A coastal railway network will be introduced.
- Rs 100 crore has been earmarked for a Rare Earth and Critical Minerals Corridor.
- Kerala plans to develop itself into a major aviation hub in Asia.
- A Global Capability Centre (GCC) ecosystem and an Aerocity will be established.
Kerala Budget 2026-27 Highlights: Global convention centre, airport expansion and AI-led growth feature in Kerala’s development roadmap
- A Global Convention Centre will be set up at CIAL.
- Rs 200 crore has been allocated for the development of airports in Kerala.
- An Investment Advisory Council will be set up to attract more investments to the state.
- The Investment Advisory Council, headed by the CM, will focus on boosting investments in Kerala.
- E-commerce, artificial intelligence (AI), automation and other emerging technologies will be key focus areas.
Kerala Budget 2026-27 Highlights: Economic corridor, MSME incentives and investment reforms on Kerala agenda.
- An economic corridor connecting Thiruvananthapuram, Kollam and Alappuzha will be launched.
- Kerala’s MSMEs will receive tax incentives.
- The Kerala MSME Growth Scheme will support 10,000 MSMEs.
- An Invest Kerala Cell will be set up.
- Techno-mentors and management mentors will be brought in to support enterprises.
- Under the One Kerala Safety Mission, special focus will be placed on education. Rs 1 crore has been allocated for the initiative, with efforts also being made to mobilise CSR funds.
- A single-window facility for land acquisition will be introduced to facilitate project implementation.
Kerala Budget 2026-27 Highlights: Kerala eyes jobs boost through start-ups, MSMEs
- A Global Job Watch Tower will be established to monitor local and global employment trends.
- Start-ups will create job opportunities for youth, with a focus on sectors ranging from space technology to data-driven industries.
- 10,000 MSME units will be set up across the state.
- Start-ups will be encouraged to generate employment opportunities in emerging sectors, including space technology and data services.
Kerala Budget 2026-27 Highlights: Vizhinjam to be Kerala’s face, says CM VD Satheesan
- Vizhinjam will be developed as the face of Kerala, says chief minister VD Satheesan.
- Research institutions focused on satellite technology will be established.
- Kerala Knowledge Valley will be established by integrating various educational institutions and setting up Centres of Excellence; Rs 100 crore has been allocated for the initiative.
- An Invest Kerala Cell will be constituted to promote investments in the state.
- A Tribal University will be established in Wayanad, with Rs 50 crore earmarked for the project.
Kerala Budget 2026-27 Highlights: Healthcare, research and elderly care initiatives get push in Kerala
- A Kerala Health and Lifestyle City will be established.
- A Research Park will be set up on the lines of IIT Madras. Rs 60 crore has been earmarked for the project.
- Rs 200 crore has been allocated for the development of airports in the state.
- A Tribal University will be established in Wayanad.
- Rs 10 crore has been earmarked for elderly care. Caregiver certificate courses will be introduced to support elderly care services.
- Private nursing colleges and hospitals will be allowed to offer caregiver courses, with certificates issued by the state government.
Kerala Budget 2026-27 Highlights: Kerala plans Land Reforms 2.0, push for floating solar projects
- A land management framework will be introduced to utilise barren and unused land.
- Land rules will be amended as part of what the government describes as ‘Land Reforms 2.0’.
- The ‘One Kerala Karuthal Mission’ will be launched, with donations used exclusively for the mission.
- A Land Management Policy will be introduced to revise land-use regulations, taking into account Kerala’s shortage of land.
- A Land Bank will be created to bring unused land into productive use.
- Renewable energy will be a key focus area and will be actively promoted.
- Floating solar projects will be introduced in reservoirs.
Kerala Budget 2026-27 Highlights: Green energy, football and urban expansion in focus in Kerala
- Kerala will be developed as a Green Hydrogen hub, with greater emphasis on the use of renewable energy.
- Rs 100 crore has been allocated for the Kerala Health and Life Science City scheme.
- An international football stadium will be constructed in Malappuram, with Rs 50 crore earmarked for the project.
- The fisheries sector will be strengthened through targeted interventions.
- The Kerala Urban Growth Mission will be launched to address the rapid expansion of urban areas across the state.
- Rs 100 crore has been earmarked for the Kerala Urban Growth Mission.
Kerala Budget 2026-27 Highlights: Film city, anti-piracy cell and cultural projects announced
- An International Film City will be established, with Rs 100 crore allocated for the project.
- An Anti-Piracy Cell will be set up to combat content piracy.
- A music academy named after music director Johnson Master will be established in Thrissur.
- An MT Vasudevan Nair Cultural Park will be set up, with Rs 50 crore earmarked for the project.
- A JC Daniel Centre for the development of the film industry will be established in Kochi.
Kerala Budget 2026-27 Highlights: Kerala announces disaster resilience, health insurance initiatives
- A Kerala disaster resilience programme will be developed to enable scientific planning and strengthen preparedness against natural disasters.
- The Kerala School of Planning, Architecture and Design will be set up.
- The Oommen Chandy health insurance scheme will be launched, providing insurance coverage of up to Rs 25 lakh per family.
- A Pravasi investment fund trust will be established to promote investments from the Malayali diaspora.
Kerala Budget 2026-27 Highlights: Kerala plans global furniture, gold hubs
- A global furniture hub will be established across Kochi, Aluva and Perumbavoor.
- Rs 10 crore has been allocated for the Global Gold Hub initiative.
Kerala Budget 2026-27 Highlights: Thrissur–Kochi Gold Hub, Light Metro on Kerala agenda
- Light metro projects will be introduced in Thiruvananthapuram and Kozhikode.
- Genzee and emerging technologies will be a key focus area.
- A Malayalam AI Initiative will be launched, with Rs 10 crore allocated for the project.
- Rs 600 crore has been earmarked for the Indira Gandhi Scheme, which provides free travel for women on KSRTC buses.
Kerala Budget 2026-27 Highlights: Rubber MSP hike, carbon farming on Kerala agenda
- Fruit farming will be encouraged across the state.
- The minimum support price (MSP) of rubber will be increased to Rs 250.
- Farm tourism will be promoted to boost rural incomes.
- The Kerala State Planning Board will be elevated as the Kerala government’s Think tank.
- Carbon farming will be encouraged as part of the state’s sustainable agriculture initiatives.
Kerala Budget 2026-27 Highlights: Kerala targets 1 crore litres of milk production a day
- Kerala aims to increase milk production to 1 crore litres per day over the next three years.
- The state is targeting self-sufficiency in milk production. Current production stands at around 70 lakh litres per day against a daily demand of 86 lakh litres.
- Housing schemes will be introduced for fishermen.
- Financial assistance will be provided to fishermen during periods when they are unable to go fishing.
- Support will be extended to women for setting up Self-Help Groups (SHGs).
Kerala Budget 2026-27 Highlights: Kerala targets carbon neutrality by 2050
- Human-animal conflict will be a key focus area in the budget.
- Kerala aims to become a carbon-neutral state by 2050.
- The ‘Krishi Sakhi’ initiative will be launched to empower and support women in agriculture.
Kerala Budget 2026-27 Highlights: Tiger, Leopard census and jobs boost announced
- A census of Tiger and Leopard populations will be conducted.
- Rs 1,422 crore has been earmarked for the employment guarantee scheme.
- Kozhikode Cyber Park will be upgraded to the standards of Infopark and Technopark.
