Thiruvananthapuram, June 19: Kerala’s Chief Minister V.D. Satheesan unveiled his first budget on Friday, marking a significant milestone in his over 25-year legislative career.
Handling the finance portfolio, Satheesan presented the revised budget for 2026-27 in the assembly. With this, he joins a select group of chief ministers who have presented a budget during their tenure, a list that previously included R. Shankar and Oommen Chandy.
Starting his speech with data from a ‘White Paper’ on Kerala’s financial situation, Satheesan emphasized the government’s commitment to creating a ‘New Era of Kerala’ with a clear mandate. He stated that this budget is based on the themes of ‘good governance and empathy,’ equally focusing on infrastructure development and welfare measures.
Satheesan warned that Kerala faces serious economic challenges. The state’s revenue is lower compared to other states, and the government is also responsible for raising funds for the KIIDF projects. He noted that KIIDF has created financial imbalances and announced the formation of an expert committee to investigate its operations.
He indicated that the government will face significant financial liabilities in the future, including the impact of salary revisions.
Satheesan pointed out that the previous budget had inaccurately estimated the central government‘s share, leading to a shortfall of ₹20,500 crores for the state. He mentioned that the annual plan allocation of ₹35,000 crores will also see proportional cuts.
Despite the economic strain, the government will continue its welfare programs. He highlighted free travel for women on KSRTC buses and an increase in honorarium for ASHA workers.
The government also indicated that it will fulfill its electoral promise to raise welfare pensions from ₹2,000 to ₹3,000 in phases.
To boost investment, the budget announced ₹100 crores in assistance for establishing 10,000 MSMEs. An ‘Invest Kerala Cell’ will be created to address upcoming challenges like land acquisition and delays in approvals. A global convention center will be built near Cochin International Airport.
₹200 crores have been allocated for airport development, which plans to integrate the development of four state airports.
The budget also introduced ‘Mission Samudra,’ an ambitious project aimed at strengthening Kerala’s maritime economy by connecting beaches, ports, and waterways. ₹400 crores have been allocated for this project, which aims to link road, sea, and inland waterway networks.
Satheesan stated that the government’s goal is to transform Kerala into a ‘Port City’ and establish a shipbuilding center in Vizhinjam. Announcements were also made for the development of Kollam, Beypore, and Azheekal ports, along with the formulation of a Kerala maritime policy. ₹50 crores have been earmarked for a maritime museum.
The budget emphasizes creating job opportunities and utilizing skills to retain young talent within the state.
He also announced a comprehensive health scheme named after Oommen Chandy, which will provide ₹25 lakhs health coverage for all families.
Additionally, an international football stadium was announced, along with the initiation of the ‘Kerala School of Architecture and Planning and Design.’ He noted that Kerala’s expatriates have been the backbone of the state’s economy, but the economy can no longer rely solely on remittances.
He added, “Now we seek their support to transform our state into an investment-based economy.”
This budget, presented by CM Satheesan amid financial pressures, attempts to balance welfare promises with investment-based development, crafting a new economic roadmap for Kerala.
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