Thiruvananthapuram: The Kerala government is set to present its Budget for the 2026–27 financial year on Thursday, January 29, with Finance Minister K N Balagopal placing before the Assembly what will be the final Budget of the second Pinarayi Vijayan government. Coming months ahead of the Assembly elections, the Budget is expected to include announcements aimed at generating public approval. An economic review outlining the State’s financial position will be tabled in the House prior to the Budget presentation.

Hopes of pension hike and DA revision

The Finance Minister has hinted at measures that could benefit government employees, pensioners and the broader social security sector. While stressing that any decisions would be guided by the State’s available resources, Balagopal indicated that welfare pensions could be increased to ₹2,500 and that a revision of the dearness allowance for government employees is under consideration. He described the forthcoming Budget as one grounded in realism and practical assessment.

Senior citizens and the ‘Silver Economy’ push

Beyond pension hikes, the government is also expected to unveil special initiatives for senior citizens. Among these is the proposed ‘silver economy’ framework, aimed at strengthening elderly care and positioning Kerala at a globally competitive level in this sector. The concept had earlier found mention in the Governor’s policy address, along with references to developing Kerala as a global destination linked to the silver economy.

Infrastructure, disaster management and welfare measures

A range of other proposals is also being anticipated. These include catastrophe bonds to strengthen disaster management, a defence research and development corridor, geo-tubes for coastal protection, funding support for AIIMS, and steps to accelerate the long-pending Sabarimala railway project. Assistance for agricultural crops, relief measures for returnees from the Gulf, housing initiatives, promotion of eco-friendly tourism, youth entrepreneurship programmes, and policies to attract investors are also expected to find prominence.

Government cites welfare gains despite fiscal stress

Despite financial pressures over the past five years, which the government attributes to the Union government’s policies, the State maintains that it has made notable progress in the social welfare sphere. Key achievements cited include raising social security pensions to ₹2,000, the introduction of a women’s security pension, and employment-linked initiatives such as the Connect to Work scheme.

Focus on long-term returns from investments

According to the Finance Minister, investments made in social welfare, traditional industries and major infrastructure projects — including the Vizhinjam port — stand out as major gains of the current administration. The government has also underlined the scale of investments channelled through mechanisms such as KIIFB over the past five years, expressing confidence that Kerala will increasingly reap the benefits of these initiatives in the years ahead.