THIRUVANANTHAPURAM: Chief Minister and Finance Minister V.D. Satheesan presented the revised state budget for the fiscal year 2026-27 during the first session of the 16th Kerala Legislative Assembly. Marking the maiden budget of the newly formed UDF government, this revised fiscal plan introduces sweeping changes to the initial budget presented earlier in January.

Themed around ‘Puthuyugam Kerala’ (New Era Kerala), the budget strikes a fine balance between major infrastructure upgrades and immediate social welfare relief. Addressing the assembly, the Chief Minister highlighted that despite the state’s towering debt burden of ₹5.07 lakh crore, the government aims to generate revenue through disciplined fiscal management without imposing any excessive tax burdens on the common public.

Here is a comprehensive, sector-wise breakdown of all the major announcements made in the 2026 Kerala Budget:

1. Agriculture & Allied Sectors: Major Relief for Rubber Farmers

Fulfilling a major election promise, the government has announced a massive hike in the minimum support price (MSP) for rubber, providing a significant financial shield to the state’s struggling high-range agrarian community.

• Rubber Support Price: The minimum support price for rubber has been officially increased from ₹200 per kg to ₹250 per kg.
• Total Agriculture Outlay: A total of ₹1,535 crore has been earmarked for the agricultural sector.
• Procurement Efficiency: Paddy procurement systems will be completely streamlined to ensure immediate direct-benefit transfers into farmers’ accounts. Specialized local procurement hubs will also be set up for coconut farmers.
• Dairy Development: Allocated ₹102 crore with a clear roadmap to escalate daily milk production to 1 crore liters within the next 3 years, aiming for absolute self-sufficiency.
• Fisheries & Coastal Shield: The kerosene subsidy for traditional fishermen has been enhanced to ₹75 per liter. Additionally, a fast-track land-title (pattayam) and housing scheme has been introduced for homeless fishermen families.

2. Transport & Automobiles: Big Tax Incentives for EVs and Fleet Operators

To aggressively drive the adoption of clean energy and support a heavily distressed private public-transport sector, the budget introduced extensive tax revisions:

• Electric Cars Get Cheaper: The road tax slabs for newly registered electric cars have been scaled down considerably to make green mobility highly affordable.
• 50% Relief for Private & Tourist Buses: Addressing long-standing demands, the quarterly tax for private stage carriages (private buses) and tourist buses has been slashed by 50 percent. Vehicles operating under the All India Tourist Permit (AITP) will also benefit from this, which the government expects will curb out-of-state vehicle registrations.

Revised EV & Commercial Vehicle Tax Structure

3. Mega Infrastructure & Economic Hubs: ‘Mission Samudra’

• Mission Samudra: Launched with an initial allocation of ₹400 crore, this flagship maritime policy aims to put Kerala’s 600-km coastline and 13 minor ports on the global maritime map. Development at the Vizhinjam and Beypore ports will be expedited, alongside a newly planned mega shipbuilding facility that will guarantee job reservations for local coastal youth.
• International Maritime Museum: An allocation of ₹50 crore has been set aside for a state-of-the-art museum celebrating Kerala’s ocean heritage.
• PWD & Road Networks: The Public Works Department receives an expansive allocation of ₹5,952 crore, which includes ₹100 crore exclusively for the Balaramapuram-Navaikulam Ring Road project.
• KIIFB Structural Reforms: Citing that off-budget liabilities created fiscal instability in the past, the Chief Minister announced that an expert committee will restructure the Kerala Infrastructure Investment Fund Board (KIIFB) to responsibly execute pending projects worth ₹35,000 crore.

4. Social Welfare & Women’s Safety

• Indira Guarantee (Free Bus Travel): Dedicated ₹600 crore to launch the first phase of free ordinary KSRTC bus travel for women and transgender individuals.
• Welfare Pensions: Set aside ₹14,500 crore to ensure regular, uninterrupted monthly distribution of social security and welfare board pensions.
• Government Employees: Transitioning to a new Assured Pension Scheme to replace the current national pension framework. Furthermore, the first installment of pending Dearness Allowance (DA) arrears will be disbursed next month, with a new pay revision commission coming into effect shortly.
• ‘Avalkoppam’ Scheme: A specialized women-safety initiative named ‘Avalkoppam’ (With Her) has been rolled out, ensuring the deployment of more women Station House Officers (SHOs) across state police stations.

5. Education, IT, and Entertainment

• Siddharthan Anti-Ragging Welfare Act: To permanently eliminate ragging and make higher education campuses safer and more female-friendly, a strict anti-ragging welfare legislation will be introduced in the assembly.
• Connect to Work IT Initiative: ₹400 crore has been allotted to the Chief Minister’s employment drive to upskill and connect youth with modern IT and technology jobs. Concurrently, the Kozhikode Cyberpark will be upgraded to match Infopark standards.
• J.C. Daniel International Film City: Allocated ₹100 crore to construct a world-class film city hub in Kochi, backed by a dedicated anti-piracy cell to legally protect cinema content creators.
• Haripad Medical College: The healthcare framework receives a major boost with a total allocation of ₹2,076 crore, featuring the revival and setting up of the Haripad Government Medical College.

Additional Fiscal Notes: To mobilize revenue smoothly, the state will see a minor price hike in Indian-Made Foreign Liquor (IMFL). A fresh tax slab has also been structured for low-alcohol beverages.

Live tracking of the Kerala State Budget 2026 presentation. Stay tuned for live commentary, analysis, welfare schemes, and breaking news

from the assembly

New State Fodder Farm to be Established at Nettukaltheri

Schools to Get ‘Poultry Clubs’; ₹102.88 Crore Allocated for Dairy Development

New Procurement Centers to be Established for Coconut Farmers

Support Price of Natural Rubber Increased to ₹250/kg

₹600 Crore Allocated for ‘Priyadarshini’ Free Travel Scheme for Women

Mega Push for Next-Gen Tech: ₹50 Cr for Generative AI, ₹10 Cr for Malayalam AI Initiative

Light Metro Projects to be Implemented in Thiruvananthapuram and Kozhikode

Global Furniture Hub: A specialized Global Furniture Hub will be developed connecting Kochi, Aluva, and Perumbavoor.

Gold & Jewellery Hub: To transform Kerala into a premier national and global hub for gold trading and craftsmanship, a dedicated Kochi-Thrissur Jewellery Corridor will be established with an initial allocation of ₹10 crore.

‘Kerala School of Planning, Architecture, and Design’ to be Set Up Under PPP Model

Mega Welfare Push: ₹25 Lakh ‘Oommen Chandy Insurance Scheme’ Unveiled; Culinary Institute to be Set Up

• Oommen Chandy Insurance Scheme: Named after the former Chief Minister, this landmark health insurance scheme will provide a cover of ₹25 lakh to every family in the state. An initial token allocation of ₹10 crore has been made for its preliminary phase.
• Kerala Culinary Institute: A dedicated, state-of-the-art Kerala Culinary Institute (കേരള പാചകകല ഇൻസ്റ്റിറ്റ്യൂട്ട്) will be established to promote and standardize traditional and global culinary arts.

C Daniel Film City to Come Up in Kochi; Memorial Parks for MT and Johnson Master Announced

Chief Minister VD Satheesan unveiled a massive infrastructure package for art and culture. Kochi will get the JC Daniel International Film City, which will double as the permanent venue for the state’s International Film Festival. Furthermore, the budget proposes a dedicated MT Vasudevan Nair Cultural Park in Kozhikode and a Johnson Master Music Academy in Thrissur to preserve and celebrate the state’s artistic legacy.

Fishermen Accident Insurance to be Revised; ₹100 Cr for Kerala Urban Growth Mission

₹50 Crore Allocated for Modern Football Stadium in Malabar to Nurture Talent

Chief Minister VD Satheesan announced a financial allocation of ₹50 crore to construct a state-of-the-art stadium in the Malabar region. Equipped with modern facilities, the stadium will serve as a primary hub to scout, train, and promote rising football talent across Kerala.

Caregiver Certificate Courses to be Launched in Major Hospitals

Massive ‘Land Reforms 2.0’ Unveiled; Comprehensive Land Bank to be Formed

In a historic legislative push, Chief Minister VD Satheesan announced “Land Reforms 2.0,” an initiative aimed at bringing timely and modern amendments to existing land laws. The government will also formulate a Comprehensive Land Management Policy and establish a state Land Bank to optimize land utilization for industrial and public infrastructure.

₹10 Crore Allocated for Senior Citizens’ Welfare Department

New Research Park Announced to Link Top Industries and Research Institutes

Huge Outlays for Education and Infrastructure: ₹50 Cr for Wayanad Tribal Varsity, ₹200 Cr for Aviation Hub

₹100 Crore Earmarked for ‘Kerala Knowledge Valley’; Foreign Universities to be Invited

In a major policy shift, Chief Minister VD Satheesan announced the ‘Kerala Knowledge Valley’ project with an initial allocation of ₹100 crore. Aimed at transforming the state into a higher education hub, the government will introduce special legislation and amend the Private University Bill to attract top-ranking foreign universities, ensuring world-class education and opportunities for local students.

₹5 Crore Allocated to Promote Private Space Tech Startups

10,000 New MSMEs Targeted; ‘Global Job Watch Tower’ to be Set Up

‘One Kerala Karuthal Mission’ Launched to Support Eligible Patients

Government to Form Investment Advisory Council

Global Convention Centre at Kochi Airport; New ‘Invest Kerala’ Cell Announced

Southern Kerala Economic Corridor Announced for Thiruvananthapuram, Kollam, and Alappuzha

International Maritime Museum to be Established

₹400 Crore Allocated for ‘Mission Samudra’ Project

Kerala Maritime Policy to be Formulated

Shipbuilding Hub: A state-of-the-art shipbuilding centre will be established with a focus on manufacturing massive “motherships.”

Job Reservation: The government will implement employment reservations for coastal community residents at these maritime job hubs.

Maritime Hub: Kerala’s 600-km coastline and water bodies will be integrated to transform the state into a global maritime power.

Underground Rail Corridor: The Balaramapuram – Vizhinjam underground railway line will be fast-tracked for rapid implementation.

CM VD Satheesan announces a special expert committee to assess and review the current structure of KIIFB.

Financial Crunch: State confronting a massive financial challenge.

Central Allocation: Decline in central government funding share.

KIIFB Overhaul: The existing structure of KIIFB will be thoroughly reformed.

On Elderly Care: “The elderly will be protected,” promises CM VD Satheesan.

On State Progress: The CM points out that Kerala’s social development indicators have hit a standstill.

Jun 19, 2026 09:05 AM IST : VD Satheesan states that the UDF government’s budget will be a roadmap for the development projects to be implemented in the state over the next five years.

Jun 19, 2026 09:03 AM IST : Kerala Budget Presentation Starts

Kochi: In a major development in the controversial CMRL-Exalogic financial transaction case, T. Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan, appeared before the Enforcement Directorate (ED) today.

Veena arrived at the ED’s Kochi office exactly at 11:00 AM, adhering to the summons issued to her. Observers noted that she was given no special VIP treatment. Security personnel denied entry to her vehicle inside the office compound, forcing her to alight at the main gate and walk into the office like any other individual under investigation.

Focus of the ED Investigation

The case revolves around allegations that Cochin Minerals and Rutile Id (CMRL) paid a whopping ₹2.78 crore to T. Veena and her IT firm, Exalogic Solutions, for services that were reportedly never rendered. Various central investigation agencies had previously flagged these financial dealings.

The ED is currently probing whether these transactions involve money laundering under the Prevention of Money Laundering Act (PMLA). This is the first time T. Veena is appearing before the central agency for interrogation in connection with this case.

According to sources within the agency, an immediate arrest is highly unlikely at this stage. The primary objective of this initial round of questioning is to clarify the discrepancies in the available financial documents and statements.