The second Pinarayi Vijayan government presented its final budget, charting an ambitious development roadmap while carefully balancing welfare commitments. Presented by Finance Minister K N Balagopal, the sixth budget of the government is also the fourth-longest budget in Kerala’s history.
Reiterating that Kerala is facing severe financial constraints due to the Centre’s policies, the budget nevertheless offered major relief to government employees. It announced salary revision, confirmed that the assured pension scheme will be implemented at the start of the next financial year, and assured that pending DA arrears will be fully cleared by March.
Infrastructure took centre stage, with ₹1,000 crore earmarked for the Vizhinjam Port project and ₹5,917 crore for MC Road development. Signalling a leap towards faster mobility, the budget allocated ₹100 crore for initial works of the Regional Rapid Transit System (RRTS), which aims to provide high-speed connectivity from Thiruvananthapuram to Kasaragod. Modeled on the Delhi–Meerut RRTS, the project will be implemented in four phases, with the first phase covering Thiruvananthapuram to Thrissur.
Another headline-making announcement was a proposed tunnel road between Kattappana and Theni, aimed at easing travel challenges in the high ranges. The budget set aside ₹10 crore for a feasibility study for the project.
Education and social welfare also featured prominently. The government announced free degree education for students in arts and science colleges, accident insurance for school students from Class 1 to Plus Two, and a ₹1,000 increase in monthly income for ASHA and Anganwadi workers. However, expectations of a welfare pension hike were not met, though the budget allocated a substantial ₹14,500 crore for pension disbursement.
The Finance Minister opened the budget by stating that Kerala has achieved notable progress despite economic pressures, adding that improvements in the state’s financial health offer reassurance. A proposal to increase the honorarium of elected representatives in local self-government bodies was another key announcement.
Other major budget highlights include:
- ₹1,498 crore for the LIFE housing scheme
- ₹10 crore for the MN Lakham Veedu housing project
- ₹30 crore for cancer treatment through medical colleges
- Permanent theatres to honour Thoppil Bhasi, P J Antony, and K T Muhammed
- ₹1,500 increase in journalists’ pension
- ₹1,128 crore for general education
- ₹15 crore for pilgrimage road development in Pathanamthitta and Kottayam
- Monthly pension for cancer, leprosy, TB, and AIDS patients doubled from ₹1,000 to ₹2,000
- Free treatment for the first five days for road accident victims
- ₹413 crore for the tourism sector
- ₹79.03 crore for Phase II of the Kochi Metro
- ₹30 crore each for the Sabarimala Master Plan and Clean Pamba project
- A new medical insurance scheme for retired government employees, on the lines of Medisep
- Launch of Medisep 2.0 from February 1
- The first batch of houses for Wayanad disaster survivors to be handed over in the first week of next month
