After over 25 years as a legislator, Kerala Chief Minister V.D. Satheesan unveiled his first Budget. This Budget for 2026-27 places him among the few Kerala CMs who have presented a Budget while in office. Satheesan emphasized the state’s financial crisis but pledged to shape a ‘New Age Kerala’.
The Budget focuses on good governance and compassion, aiming to balance welfare commitments with investment-led growth. Due to incorrect revenue projections, the government discovered a Rs 20,500 crore revenue shortfall. The State’s total liabilities, including KIIFB and the Social Security Company, amount to Rs 87,012 crore.
Satheesan criticized KIIFB for contributing to financial imbalance and announced an expert committee to review its operations. The government cautioned about the financial burden from upcoming salary and pension revisions. Despite fiscal challenges, the Budget promises a significant welfare and development boost.
The Budget highlights initiatives like the Indira Guarantee schemes, offering free travel for women in KSRTC buses and increased wages for scheme workers. It also introduces the Kerala MSME Growth Scheme to support 10,000 MSME units. An Invest Kerala Cell will streamline investment processes.
The ‘Mission Samudra’ project aims to enhance Kerala’s maritime economy by integrating ports and infrastructure. Plans include developing Kerala as a port city and establishing a shipbuilding center. The Budget also targets the aviation sector for growth, aiming to make Kerala a South Indian aviation hub.
A startup initiative for Gen-Z entrepreneurs with Rs 50 crore initial allocation was announced. The Oommen Chandy Health Insurance Scheme offers free treatment coverage up to Rs 25 lakh per family. The Budget allocates funds for a Kerala Health and Life Science City.
The proposal includes a Kerala Knowledge Valley, focusing on global universities and advanced technology sectors. The Budget also addresses agriculture, fisheries, rural sectors, and cultural and tourism development. Satheesan’s Budget aims to position Kerala as an investment destination while upholding its welfare identity.
