Kerala Budget 2025-26: Finance minister KN Balagopal presents 5th budget of 2nd Pinarayi Vijayan govt amid financial crunch

Kerala Budget Live Updates: Rs 12 crore for anti-drug campaign, excise dept gets Rs 9.27 crore

Kerala finance minister KN Balagopal has allocated Rs 12 crore for Vimukthi, the state excise department’s campaign against drug and alcohol addiction. The initiative gains importance amid the rising concerns over substance abuse in the state.

Additionally, Rs 9.27 crore has been earmarked for the construction of excise department offices and procurement of essential materials. The Vimukthi mission focuses on raising awareness, particularly among the youth, to achieve an intoxicant-free Kerala.

Kerala Budget Live Updates: Higher taxes on old vehicles, land, and EVs; relief for public transport

The Kerala budget introduces key tax revisions impacting vehicle owners and landholders, aligning with government policies to promote sustainability and increase revenue.

• Road tax on stage carriage vehicles and buses will be reduced, providing relief to public transport operators.
• Tax on electric cars has been increased, likely to offset subsidies and encourage sustainable revenue generation.
• Private vehicles older than 15 years will be subject to higher taxes, in line with the Government of India’s policy to phase out older vehicles. This measure is expected to generate an additional ₹55 crore in revenue.
• Land value across the state has been revised, leading to an increase in basic land tax by 50% to boost state earnings.

Kerala Budget Live Updates: Rs 20 crore allocated for seaplane project to boost tourism

The Kerala government has allocated Rs 20 crore for the Seaplane project, signaling its commitment to advancing a key tourism initiative. The project had previously faced strong opposition from environmental groups and political parties, especially after a trial service between Kochi and Munnar.

Despite past hurdles, tourism experts believe this funding could revive the project, enhancing Kerala’s tourism sector and attracting high-value travelers to the state.

Kerala Budget Live Updates: Key investments in public welfare, transport, and digital growth

Kerala finance minister KN Balagopal announced significant budget allocations aimed at strengthening public infrastructure, social security, education, and technological advancements.

• ₹107 crore allocated for purchasing BS6 buses for public transport.
• ₹5 crore for GCDA, including funding for She Hostel.
• ₹30 crore earmarked for Sreenarayana Open University.
• ₹150.81 crore allocated for various activities under NORKA Roots.
• ₹402 crore set aside for the noon meals program in schools.
• ₹100 crore for power generation projects across the state.
• ₹15 crore to expand WiFi hotspots in Kerala.
• ₹8.96 crore allocated for the Champions Boat League.
• ₹30 crore for the Vidya Vahini Project, improving digital education.
• ₹21 crore allocated for setting up stroke units in all district hospitals.
• ₹15 crore for the National Nutrition Mission.
• ₹210 crore allocated for infrastructure projects under Nava Kerala Sadass.
• ₹100 crore for the Aswasakiranam social security scheme, doubling last year’s allocation, although only 20% of last year’s funds were spent.
• ₹5 crore for CDS financial aid.
• ₹500 crore allocated for implementing Nava Kerala projects.
• ₹5 crore for Vigilance and Anti-Corruption Bureau (VACB) modernization.
• ₹104 crore earmarked for revamping the Home Department.
• ₹20 crore for jail modernization projects across Kerala.
• ₹23.9 crore for GST department development projects.
• ₹18 crore allocated for enhancing judicial infrastructure.
• Kerala Financial Corporation (KFC) capital share increased from ₹300 crore to ₹600 crore, with plans to raise it to ₹800 crore.
• ₹2 crore allocated for installing napkin vending machines in schools.
• ₹1,000 crore earmarked for the Rebuild Kerala initiative.
• ₹56.56 crore set aside for implementing the food safety project.
• ₹15 crore allocated for renovating Supplyco outlets.

Kerala Budget Live Updates: Rs 50 crore allocation for health tourism hub development

Kerala finance minister KN Balagopal announced plans to position Kerala as a leading health tourism destination. A Rs 50 crore allocation has been made for campaigns to promote Kerala’s health tourism globally.

Balagopal emphasized Kerala’s ideal environment and advanced healthcare infrastructure as key factors in transforming the state into a top health tourism hub. The funds will be used to spread awareness about Kerala’s health sector excellence and enhance the facilities within this sector.

Kerala Budget Live Updates: Key allocations for infrastructure, agriculture, and public welfare

In the Kerala Budget for 2025-26, Finance Minister K.N. Balagopal announced several key allocations to boost infrastructure, agriculture, and public welfare projects across the state:

• ₹20 crore allocated for the Banasura Sagar project in Wayanad.
• ₹100 crore earmarked to enhance power generation.
• ₹100 crore for the Kochi-Palakkad GIFT corridor.
• ₹30 crore for the Petrochemical Park in Kochi.
• ₹1160 crore allocated for the Life Mission project.
• ₹10 crore for the Startup Mission.
• ₹25.81 crore set aside for Kerala Digital University operations.
• ₹2065 crore for the transport sector.
• ₹100 crore for Kerala Fibre Optic Network (K-FON).
• ₹2134 crore for the Wayanad tunnel road project.
• ₹107 crore for purchasing BS6 buses for KSRTC.
• ₹21 crore allocated for Thiruvananthapuram Technopark, ₹21.6 crore for Kochi Infopark, and ₹11.5 crore for the Kozhikode IT Park.
• ₹25.22 crore for purchasing new energy-efficient boats.
• ₹107.6 crore for the coir sector.
• ₹200 crore for the Kochi-Bangalore corridor development.
• ₹77.9 crore for soil conservation efforts.
• ₹9 crore for the State Horticulture Mission.
• ₹47 crore for Kerala Agricultural University.
• ₹120 crore for dairy development and ₹78.4 crore for vegetable cultivation.
• ₹150 crore for paddy cultivation.
• ₹10 crore for barrier-free schools.
• ₹2 crore allocated for ABC projects in response to the rising incidents of dog bites.
• ₹10 crore earmarked for addressing waterlogging issues in Ernakulam.
• ₹176 crore allocated for KSRTC.

Kerala Budget Live Updates: Focus on metro projects, infrastructure, and port development

In the Kerala Budget for 2025-26, Finance Minister K.N. Balagopal highlighted a special emphasis on expanding metro projects in Kochi, Kozhikode, and Thiruvananthapuram. The Kochi Metro Phase II Pink Line project is already underway and requires additional funding this year.

While the projects in Kozhikode and Thiruvananthapuram are still in early stages, the state remains committed to their development. Balagopal also reaffirmed the government’s commitment to the high-speed rail project, though the SilverLine semi-high-speed rail project faces delays due to required modifications by the Centre.

The budget also includes plans for significant infrastructure development, with a focus on completing 150 bridges across the state. However, there was no major announcement regarding new fund allocations for infrastructure projects. Last year’s budget allocated Rs 39.20 crore for port development in Azhikkal, Beypore, Kollam, Alappuzha, and Ponnani, aimed at boosting cargo, passenger transportation, and tourism, though these port projects are still in the planning phase.

Kerala Budget Live Updates: Rs 750 crore allocated for rehabilitation of 2024 Wayanad landslide victims

Finance minister KN Balagopal announced a ₹750 crore allocation for the rehabilitation of victims of the 2024 Wayanad landslides, which caused 254 deaths, 44 missing, and the destruction of 2007 homes. The total loss was ₹1202 crore, with a rehabilitation need of ₹2201 crore. Balagopal criticized the central government for not providing assistance in its 2025-2026 budget, urging the centre to treat Kerala with the same fairness as other states. He reassured that the Left government will carry out the rehabilitation on a time-bound basis and affirmed that the allocated ₹750 crore is a primary step in the recovery efforts.

Kerala Budget Live Updates: Strategic budget allocations for rural development, agriculture, and infrastructure

The FM announced significant budget allocations aimed at supporting agriculture, tourism, infrastructure, and rural development in Kerala.

• ₹5 crore for the MT Memorial at Thunchan Parambu, Malappuram.
• ₹73 crore allocated for coconut development.
• ₹5 crore for the Vaikom Smaraka Kendram.
• ₹20 crore for the seaplane project.
• ₹77 crore set aside for the Soil Conservation Department.
• ₹5 crore allocated for an IT park near Thunchan Parambu.
• ₹100 crore for the KERA project.
• ₹150 crore for paddy development.
• ₹120 crore earmarked for dairy development.
• ₹10 crore allocated for the Operation Breakthrough project to prevent waterlogging in Kochi.
• ₹60 crore earmarked as part of the project to alleviate extreme poverty in the state.
• ₹150 crore allocated for paddy development projects.

Kerala Budget Live Updates: Key allocations for technology, welfare, and infrastructure growth

The Finance Minister outlined several important budget allocations designed to drive growth in sectors such as technology, transportation, social welfare, and education.

• ₹100 crore allocated to replace old vehicles with new ones.
• ₹1 crore earmarked for AI startup ventures.
• ₹10 crore designated for the fintech sector.
• ₹1 crore allocated for the Kerala Startup Mission.
• ₹293.22 crore set aside for establishing an IT park in Kannur.
• ₹50 crore allocated to prevent man-animal conflict.
• An additional ₹50 crore for a special package to address the man-wildlife conflict.
• ₹500 crore allocated for inland navigation development.
• ₹5 crore allocated for the MT Study Centre.
• ₹5 crore for the Vaikom Satyagraha memorial.
• ₹20 crore announced for minority scholarships, following a 50% reduction in existing scholarships announced last year.
• ₹5 crore for New Innings, a project supporting elderly people to start businesses.
• ₹5 crore allocated for the establishment of toy manufacturing units as MSMEs, with the support of Kudumbashree.

Kerala Budget Live Updates: Vizhinjam port will serve as a key trading center, with Phases 2, 3, and 4 scheduled for completion by December 2028.

Kerala Budget Live Updates: Key allocations for infrastructure, health, and tourism projects

The FM outlined significant budget allocations across various sectors to strengthen infrastructure, health, tourism, and social welfare.

• ₹5 crore allotted for the K Homes project.
• ₹500 crore from KIFFB allocated for inland water transport projects.
• ₹10,431 crore earmarked for the health sector.
• ₹5 crore set aside for the "Expand Your Office" project to develop co-working spaces.
• ₹7 crore allocated for the Kochi Muziris Biennale.
• ₹2 crore for organizing the international GCC conclave, with ₹5 crore for GCC centres in the state.
• ₹5 crore allocated for multi-generation parks to provide open gymnasiums and fitness opportunities for all age groups.

Kerala Budget Live Updates: Key development plans unveiled for economic growth and infrastructure

The Finance Minister announced key initiatives to boost Kerala’s economy, infrastructure, and tourism, with major investments in industry, IT, transport, and research, including:

• An International GCC Conclave to be conducted this year.
• Vizhinjam to be developed as a major industrial corridor.
• A new IT Park to be set up within Kollam Corporation limits.
• Major convention centres and hotels to be established to boost tourism.
• Vacant houses to be integrated into the tourism sector, providing owners with income and improved security.
• Seven Centres of Excellence to be established, with ₹25 crore allocated for the initial phase.
• Development of the Kovalam-Bekal Inland Water Transport Corridor.
• Science parks in Kannur, Kochi, and Thiruvananthapuram already under development.

Kerala Budget Live Updates: The FM detailed budget allocations across various sectors, including Rs 3,061 crore for the development of roads and bridges and Rs 62 crore for establishing a Centre of Excellence at CUSAT.

Kerala Budget Live Updates: Rs 1,160 crore allocated for the LIFE Mission project to tackle the housing crisis in the state.

Kerala Budget Live Updates: Annual expenditure of the state went up by Rs 50,000 crore, FM said.

Kerala Budget Live Updates: The Finance minister announced plans to establish a new shipyard in southern Kerala.

Kerala Budget Live Updates: Campaigns will be launched in foreign countries to promote health tourism, with Rs 50 crore allocated for the initiative.

Kerala Budget Live Updates: Budget allocations for transport, health, and welfare projects

The Finance Minister announced budget allocations for various sectors.

- Rs 6,965 crore allocated to KSRTC.
- Rs 700 crore set aside for the Karunya project.
- Rs 16,431.73 crore earmarked for the health sector.
- Rs 1,160 crore allocated for the LIFE housing project.

Kerala Budget Live Updates: The Finance Minister announced relief measures for pensioners, stating that DA arrears will be disbursed in two installments. Additionally, Rs 600 crore has been allocated for service pensioners in February.

Kerala Budget Live Updates: The Finance minister alleged that the Centre has reduced Kerala’s share in the divisible tax pool, dropping from 3.88% during the 10th Finance Commission period to 1.92% in the 15th Finance Commission period.

Kerala Budget Live Updates: Tourism boost, measures to curb uncontrolled emigration

Tour packages and food courts showcasing Kerala’s renowned cuisine will be introduced to enhance the tourist experience.

The government will implement measures to regulate uncontrolled emigration, with a special focus on students.

Kerala Budget Live Updates: FM stated that the state will seek financial assistance from the Union government for establishing a shipyard in the southern districts of Kerala.

Kerala Budget Live Updates: The Finance minister unveiled a metropolitan development plan for Kochi, Kozhikode, and Thiruvananthapuram. The Kochi Metro upgrade will progress as planned, while work on the Thiruvananthapuram Metro Rail project is set to commence this year.

Kerala Budget Live Updates: Fifty research projects will be assigned to higher education institutions to enhance research and development efforts.

Kerala Budget Live Updates: FM confident in economic growth, cites fiscal discipline

Finance minister stated that Kerala’s economy is poised for significant growth, attributing it to the government's stringent fiscal consolidation measures. He also highlighted an increase in domestic production as a positive indicator of economic progress.

Kerala Budget Live Updates: The government has announced that pending service pension arrears for employees will be settled in February

Kerala Budget Live Updates: Rs 750 crore announced for Wayanad landslide rehabilitation, minister criticizes centre

Finance Minister has allocated Rs 750 crore for the rehabilitation of Wayanad landslide victims, while stating that the state requires Rs 2,221 crore for complete restoration. He also criticized the Centre for not extending adequate support to Wayanad’s recovery efforts.

Kerala Budget Live Updates: VD Satheesan, speaker criticize delay in economic review

As the budget session begins, Leader of Opposition VD Satheesan objected to the Economic Review not being presented a day before the budget, calling it inappropriate. Speaker also acknowledged the lapse, stating that it should have been submitted earlier and must not be repeated in the future.

Kerala Budget Live Updates: Balagopal assures welfare, development won’t be affected

Presenting the fifth budget of the second Pinarayi Vijayan government, Finance Minister KN Balagopal reassured that financial constraints would not impact welfare and development projects. In a Facebook post today, he emphasized the government’s commitment to sustaining key initiatives despite economic challenges.

Kerala Budget Live Updates: KN Balagopal to present final full budget

Finance Minister KN Balagopal will present his fifth and last full budget of the second Pinarayi Vijayan government on Friday. With the state’s fragile financial situation, he has limited scope to introduce widely popular measures. Instead, his focus will be on minimizing public dissatisfaction while addressing fiscal challenges.

Kerala Budget Live Updates: Limited fiscal options under GST regime

The GST framework restricts the state’s ability to generate additional revenue, leaving Balagopal with few choices. He may have to consider options that were previously opposed by his party. While expenditure rationalization is a pressing need, the government has shown little intent to pursue cost-cutting measures.

Kerala Budget Live Updates: Social security pension may see marginal hike

Ensuring timely payment of social security pensions remains a priority for the minister. Currently, around 62 lakh elderly individuals receive ?1,600 per month. Though a significant hike is unlikely, a small increase might be announced, given the upcoming local body and assembly elections.

Kerala Budget Live Updates: Road user fee under consideration

There is growing support from CPM leaders, including former Finance Minister TM Thomas Isaac, for introducing a user fee on KIIFB-funded roads. While Isaac had earlier assured KIIFB’s financial resilience, he has now admitted that additional revenue sources are needed. Balagopal has acknowledged the possibility of a road user fee, though a final decision is pending.

Kerala Budget Live Updates: Potential rollback of certain taxes and fees

Some of the tax and fee hikes introduced in the previous budget may be reversed due to a sharp decline in land transactions. However, the minister has indicated plans to revise several government service fees, which could impact multiple sectors.

Kerala Budget Live Updates: Key announcements expected for development projects

New projects are expected to focus on the Vizhinjam port’s expansion. Additionally, the budget is likely to include a roadmap for Wayanad rehabilitation. Political narratives will be strong this time, with the state government placing significant blame on the central government for its financial struggles.