Kerala Chief Minister V.D. Satheesan, who also holds the Finance portfolio, has 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, mobilizing financial resources for the public exchequer, and ensuring the equitable distribution of wealth, the CM said.
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Mr. Satheesan 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. He 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. - PTI
In a move likely to enthuse football fans, especially in north Kerala, Mr. 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. - PTI
Kerala's Budget aims to transform the state into a leading Port City, enhancing maritime and logistics capabilities along its extensive coastline.
The revised Budget for 2026-27 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”. - PTI
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Thomas Isaac questions Kerala's strategy to address a ₹20,000 crore shortfall ahead of the UDF government's revised Budget presentation.
Kerala slashes tax on All India Permit vehicles by 50%, boosting local transport and tourism while increasing state revenue.
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Chief Minister V.D. Satheesan concludes his Budget speech
Sabarimala, Guruvayur, Kottiyam, Tiruvallam temples will be developed on the Tirupathi temple model as part of promoting pilgrimage tourism in Kerala
New tax slab for low-alcohol beverages introduced. Road tax of electric vehicles to be reduced
A Sree Narayana Guru statue and cultural centre would be established in New Delhi. Rs 1 crore has been earmarked to construct a memorial for late actor Salimkumar in Ernakulam. Rs 100 crore has been set aside for Outer Ring Road project in Thiruvananthapuram. Data-driven decision support system to be implemented, and ₹30 crore has been allocated for this
Supplyco will be made self-sufficient by procuring essential commodities through supply-chain management model. Efforts will be made to obtain the dues expected from the Centre.
Fair value of land in Kerala will be reviewed in view of complaints of discrepancies in the present fair value fixed in various regions. Rs 5,952 crore has been earmarked for the Public Works Department (PWD). Rs 1 crore has been set aside for holding a feasibility study on constructing an elevated corridor to Calicut airport
Makalkoppam project to be launched to focus on preventing crimes against women. More women police officers would be appointed as station house officer in police stations across Kerala. Meanwhile, Rs 10 crore has been earmarked for ‘Operation Toofan’ to bring down narcotic crimes in Kerala
Academic Council will formed to prevent excessive political influence on academic issues. An ombudsman mechanism will be introduced in colleges for student grievance redressal. Bridge programmes will be introduced for the benefit of job-seeking graduates.
The government will pursue strong steps to prevent ragging in campuses. A Sidharthan Student Distress App will be developed and a Sidharthan Anti-Ragging and Student Welfare Act will be introduced. The initiatives are in memory of J.S. Sidharthan, 20-year-old student who allegedly committed suicide at the Kerala Veterinary and Animal Sciences University in Wayanad following brutal and prolonged ragging.
A new housing scheme for the SC/ST community will be implemented. Barrier-free tourism will be promoted to help people with disabilities, says CM
A future readiness think tank will be established. Academic tourism will be bolstered by attracting foreign students through a ‘Semester in Kerala’ scheme. Credit transfer will be facilitated among Kerala’s universities to enable student mobility. Steps will be adopted to enhance student diversity in Kerala’s universities
Vision 2036 to be implemented to nurture sports talents for Olympics
Rs. 1477.57 crore allocation for the general education sector. Campuses will be made girls-friendly by ensuring clean toilets, and access to sanitary napkin for all girl students. Jawaharlal Nehru Centre for Scientific Temper to be established to boost scientific temper and turn Kerala into a global knowledge hub. An allocation of Rs. 25 crore has been made
An incubation centre for start-ups and aspiring entrepreneurs to be set up. ₹10 crore allocated for this. Women tourism entrepreneurs will be promoted, says CM in his Budget speech
Rs 1,578 crore has been earmarked for the transport sector, and Rs 325 crore for the tourism sector. Steps would be taken to provide industry status to Tourism sector, says Mr. Satheesan
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A special package will be implemented to uplift the districts of Wayanad, Kasaragod and Idukki, particularly in the areas of education, health and livelihood means. Online grama sabha facility will be introduced to ensure participation of all stakeholders. Title deeds will be provided to all coastal residents. Kerosine subsidy for fishermen increased to Rs 75
Rs. 243.80 crore allocation for forest and wildlife conservation. Leopard and tiger census will be undertaken. Rs. 192.20 crore allocated to mitigate human-wildlife conflicts in Kerala by utilising technological advancements. Rapid response teams (RRTs) will be deployed at conflict hotpots
Budget announces wage hikes for school cooks and pre-primary teachers and ayaahs
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An amount of ₹1534.98 crore has been allocated for the Agriculture sector. Minimum support price (MSP) of rubber to be increased to Rs 250
Rs 600 crore earmarked to compensate the loss suffered by KSRTC for implementing the Priyadarshini free bus travel scheme for women and transgenders. Rs. 50-crore allocation to boost startups, innovation hub, smart industries and encourage technological entrepreunership among the GenZ
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Thiruvananthapuram and Kozhikode light metro projects to be implemented. An amount of Rs 20 core has been earmarked for the preliminary works. The Kochi-Perumbavoor-Aluva corridor will be developed as a Global Furniture Hub. An allocation of Rs. 10 crore has been made. Kochi-Thrissur belt will be developed as a gold manufacturing corridor. The government proposes a Global Gold Hub. Rs. 10 crore has been earmarked.
A Kerala School of Planning, Architecture and Design to be established under PPP mode. The proposed institute will offer UG and PG courses in architecture and design, and PG course in urban planning. Rs. 2 crore has been earmarked for the project.
The Chief Minister has announced the Oommen Chandy Health Insurance Scheme, a key component of the UDF pre-election Indira Guarantees. The scheme will offer support worth Rs. 25 lakh to each family. A preliminary allocation of Rs. 10 crore has been made
JC Daniel international film city to be set up in Kochi. MT Vasudevan Nair Cultural Park in memory of the legendary writer to come up in Kozhikode. Rs 50 crore has been set aside for this. A music academy to be set up in Thrissur in memory of the late music composer Johnson
Kerala urban growth mission to be implemented. Rs 100 crore earmarked for this. Meanwhile, a modern football stadium to be set up in the Malabar region
Community-based battery energy storage systems to be established in all panchayats, says Satheesan
A Kerala Knowledge Valley will be established to bring together high-ranking global and national institutions, and legacy universities. It will turn the State into a higher education destination and check the out-migration of students seeking quality education abroad. The Private Universities Bill will be amended for the purpose. A significant allocation of Rs. 100 crore has been made for the project. Meanwhile, Thrissur Government Medical College and College of Engineering, Thiruvananthapuram, will be upgraded to ‘Constituent College of the University’ status.
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Satheesan says the State government will set up a ‘Global Job Watch Tower’, a future skills and employment intelligence mission. This will monitor future job opportunities, emerging skills, recommend curricula revisions and ensure industry-academia linkage. Rs. 2 crore has been allocated for the initiative in its first phase
Budget earmarks Rs 5 crore to boost ‘space economy’. SpacePark project to be expanded. Steps will be taken to complete Rail connectivity to Vizhinjam port
‘One Kerala Karuthal Mission’ will be formed to support people facing extreme poverty and are unable to meet expenses for serious diseases and children’s education. The Mission will involve a technology-oriented platform and solicit CSR funds and contributions from various organisations and individuals
Data-based, single-window Invest Kerala cell to be formed to spur Kerala’s industrial development. Kerala MSME growth scheme announced. Government to provide aid for setting up 10,000 MSMEs. ₹100 crore allocated. Special Investment Zone to be set up to turn Kerala into an attractive investment destination, says CM
An expert committee will be formed to revamp the functioning of KIIFB. The government faces the burden of finding funds to complete Rs 35,000-crore worth projects implemented by KIIFB. Besides, KIIFB’s off-Budget borrowings and debt burden is leading Kerala through an economic instability,, says CM
CM announces Mission Samudra to place Kerala on the global maritime map within the next five years. ₹400 crore allocated for the project. A Maritime policy will be framed giving focus to 13 non-major ports. An international maritime museum will be established in Kerala
V.D. Satheesan says the Budget will form a roadmap for the State’s development trajectory for the next five years. Kerala’s social and development indicators have been witnessing a slump of late. Besides, youth employment remains a point of concern. The government is committed to improve health and education sectors, enhance job opportunities, ensure the well-being of senior citizens and uplift marginalised sections using emerging technologies. The budget will pave the way for a Puthuyuga Kerala (New-age Kerala), he said
Chief Minister tables the Revised Medium Term Fiscal Policy. Presentation of Revised Budget for 2026-27 fiscal begins in Assembly.
Chief Minister V.D. Satheesan arrives in the Kerala Assembly to present the Budget. UDF members greet the Chief Minister. The Budget presentation will begin at 9 a.m.
Chief Minister V.D. Satheesan will present the Revised Budget for the 2026-27 fiscal in the Kerala Legislative Assembly at 9 a.m. today (June 19).
The budget will also be the first of the Congress-led United Democratic Front (UDF) government which came to power in Kerala in May after a landslide victory in the April 9 Assembly polls.
Mr. Satheesan’s presentation will be keenly watched for what it has to say about course corrections in Kerala’s fiscal policy, additional revenue mobilisation, and, among other things, the Kerala Infrastructure Investment Fund Board (KIIFB) and pay revision.
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Kerala CM V.D. Satheesan to present the revised Budget today, focusing on fiscal policies and revenue mobilization amid challenges.
The Congress-led UDF government’s Revised Budget for 2026-27, to be presented by Chief Minister V.D. Satheesan on Friday (June 19, 2026) faces the challenge of finding the middle ground between re-aligning Kerala’s fiscal space for tackling the concerns raised in the White Paper on State finances and mobilising additional revenue for development and welfare, notably the Indira Guarantees and the ‘dream projects.’
Kerala's Congress-led UDF government presents a Revised Budget on June 19, focusing on fiscal health, welfare, and growth challenges.
Kerala CM V.D. Satheesan to present the 2026-27 Revised Budget on June 19, marking UDF government's first budget session.
Published - June 19, 2026 07:04 am IST
Live news / Kerala / United Democratic Front / government / budgets and budgeting / state budget and tax / state politics / politics
Source: The Hindu - India News
