Kerala Budget 2026: Vijayan Govt Focuses on Welfare, Upholds State Autonomy Ahead of Assembly Polls
Full Budget Highlights Welfare Pensions, Infrastructure, and Resistance to Centre’s Fiscal Controls
Kerala, Jan 29 : Finance Minister K.N. Balagopal on Thursday presented the sixth consecutive Budget of the LDF government in the Assembly, emphasizing welfare spending, infrastructure development, and the state’s resistance to what he described as persistent fiscal neglect by the Centre.
Breaking from convention, the Vijayan government presented a full budget despite the Assembly elections later this year, instead of the customary vote on account.
Balagopal opened the session by asserting that the government had fulfilled all promises and expressed confidence in placing every development and welfare initiative under public scrutiny. He described Kerala as having established a “new normal,” forecasting transformative changes over the next decade.
A central focus of the Budget was welfare pensions, with Rs 14,500 crore earmarked for the next financial year, including Rs 3,820 crore for women’s security pensions. According to the Finance Minister, nearly 30% of Kerala’s population now receives some form of government assistance, reaching close to one crore people. Over the course of the LDF’s second term, welfare pension disbursements are projected to total Rs 54,000 crore.
Balagopal also highlighted Kerala’s fiscal resilience, noting that while public debt rose from 12.60% in 2023-24 to 15.68% in 2024-25, the debt-to-GDP ratio increased only marginally from 23.60% to 24.83%, reflecting relative stability. He accused the Centre of reducing Kerala’s tax share, curbing borrowing limits, and imposing stricter financial controls, which he said threatened the federal spirit of India.
On infrastructure, Balagopal credited Chief Minister Pinarayi Vijayan’s political will for accelerating long-pending National Highway projects, which he said had finally materialized under the current government.
The Budget combines a strong welfare agenda with a political message, positioning the LDF government as a protector of social security and a defender of Kerala’s fiscal rights within India’s federal structure.
