The 2026 State Budget, the last budget of the second Pinarayi Vijayan government, places strong emphasis on welfare, social security, infrastructure, and employment. The budget presentation lasted 2 hours and 53 minutes and began with criticism of the central government’s fiscal policies.
📊 Fiscal Overview
Expected revenue: ₹1.82 lakh crore
Total expenditure: ₹2.4 lakh crore
Revenue deficit: ₹34,587 crore (2.12% of GSDP)
Fiscal deficit: ₹55,420 crore (3.4% of GSDP)
Effective capital expenditure: ₹30,961.48 crore
Increase in revenue income: ₹45,889.49 crore
Increase in own tax revenue: ₹10,271.51 crore
Increase in non-tax revenue: ₹1,595.05 crore
👩🏫 Wages, Salaries & Government Employees
Anganwadi workers: ₹1,000 monthly hike
Anganwadi helpers: ₹500 monthly hike
ASHA workers: ₹1,000 monthly hike
Pre-primary teachers: ₹1,000 monthly hike
School kitchen staff: ₹25 daily wage hike
Literacy instructors: ₹1,000 monthly hike
Contract/daily wage employees: 5% wage increase
12th Pay Revision Commission announced
Pending DA and DR arrears to be fully cleared
House Building Advance scheme to be restored
Assured Pension Scheme to replace NPS from April 1
Minimum pension assured at 50% of last drawn basic pay
👵 Pensions & Social Welfare
Journalist pension increased by ₹1,500
Pension for cancer, AIDS, leprosy, TB patients increased by ₹1,000
Welfare pensions allocation: ₹14,500 crore
On-call volunteer service for senior citizens living alone
Subsidies for retirement homes
Advocate Welfare Fund increased to ₹20 lakh
🎓 Education & Students
Accident life insurance for students from Class 1 to 12
Special enrichment programme for tribal education: ₹60 crore
CDS to be developed as a national centre of excellence: ₹10 crore
Global skill development school: ₹10 crore
🏥 Health Sector
Free cashless treatment for first 5 days for road accident victims
Menopause clinics in district hospitals
₹30 crore for treatment of Spinal Muscular Atrophy under KARE
New health insurance scheme for families outside Karunya Arogya Suraksha
🚧 Infrastructure & Transport
MC Road (Thiruvananthapuram–Angamaly) development: ₹5,217 crore (KIIFB)
Thiruvananthapuram–Kasaragod RRTS initial works: ₹100 crore
Bypasses in major towns and junction improvements
Electric auto incentives:
₹40,000 scrappage bonus
2% interest subsidy on loans
Solar charging units at auto stands
🏭 Industry, Employment & Technology
Rare Earth Corridor (Vizhinjam–Chavara–Kochi):
₹42,000 crore investment, 50,000 jobs
Critical Mineral Mission: ₹100 crore
Defence corridor: ₹50 crore
Cyber Valley at Infopark Kochi: ₹30 crore
“Work Near Home” expansion: ₹150 crore
Gig Workers Hub: ₹20 crore
Global employment and skill training initiatives
🏛️ Local Self-Government & Culture
Local body funds:
General Purpose Fund: ₹3,237 crore
Maintenance Fund: ₹4,316 crore
Plan Fund: ₹10,189 crore
Increase in honorarium for panchayat members and councillors
Welfare fund for former local representatives
Funds for museums, cultural centres, and study centres
⭐ Special Announcements
Native Identity Card for all Kerala citizens
Awards for tax-paying citizens
V.S. Achuthanandan Memorial Centre: ₹20 crore
Marketing and distribution network for Kudumbashree products
