Kerala Budget 2026-27: Budget reaffirms LDF’s vision of inclusive growth: CM

Chief Minister Pinarayi Vijayan described the State Budget as a people-oriented Budget that balances comprehensive development with social welfare. He said the proposals reaffirm the Left Democratic Front (LDF) government’s long-term vision to transform the State into a modern, developed middle-income society.

In his statement, Mr. Vijayan also rejected criticism that the Budget only declared projects that could not be implemented in the last decade as “childish claims out of frustration”. He pointed out that many projects that were once thought impossible were successfully carried out during the LDF’s tenure, citing the national highway development and the second phase of Vizhinjam port as prominent examples.

The Prime Minister emphasized that welfare measures along with development initiatives have received equal priority over the last decade and this trend continues in the current Budget as well.

Among the major announcements, he highlighted that the pay for ASHA workers has been increased by ₹2,000 in total (₹1,000 was announced before the Budget and an additional ₹1,000 was announced in the Budget.) Monthly wages of Anganwadi workers, pre-school teachers and literacy instructors have also been increased by ₹1,000 each.

He also emphasized that all pending Dearness Allowance and Dearness Allowance installments for government employees and retirees will be released. In addition, as of April 1, the contributory pension plan will be replaced by the guaranteed pension plan. The government had also adhered to its policy of implementing salary revisions every five years.

Calling it a historic move, the Prime Minister said the Budget allocated ₹ 100 crore to alleviate human-wildlife conflict. An additional ₹1,000 crore has been allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme. Funds have also been allocated to modernize auto-rickshaw stalls and set up gig workers’ centers with modern facilities. Mr. Vijayan said such examples reflect the government’s concern for all sections of society.

According to him, the Budget provided relief to all sections of society, including workers, farmers, middle class, government employees, business community and industrial community. He added that the budget constitutes a strong political response to the Centre’s alleged attacks on federalism and constitutional values. He said that unfair borrowing limits, failure to collect the State’s rightful share of taxes, and delays in the payment of dues are strangling the United States financially.