Kerala Budget: Big push for higher education, healthcare reforms, MSME expansion and infrastructure projects

Speech concludes

DA/DR for government employees to be paid without delay; MEDISEP scheme to be revised

Sabarimala, Guruvayoor, Kotiyoor, and Thiruvallam temples to be developed as national pilgrimage centres on the Tirupati model

Mission 2036 launched to train athletes capable of competing in the 2036 Olympics

‘Siddharthan Anti-Ragging Student Welfare Act’ to be implemented to prevent ragging and ensure student welfare

Financial assistance to be provided for annual health check-ups for people above 40 years of age; ‘Reach Kerala’ project to position Kerala as a global health tourism destination

Steps to expand Kasaragod, Wayanad, Manjeri and Idukki medical colleges; second medical college in Thiruvananthapuram; New medical college to be established in Haripad

• Anti-ragging measures to be strengthened in campuses.
• ‘Semester in Kerala’ programme to be strengthened to attract foreign students to study in Kerala.
• Campuses to be made girls-friendly; sanitary napkins to be ensured for all girl students.

KSRTC Priyadarshini Free Travel Scheme announced with ₹600 crore allocation

₹985.77 crore allocated for road and bridge development, ₹114.44 crore for the cooperative sector, ₹325.36 crore for tourism, ₹1,578.83 crore for the transport sector, and ₹1,422.60 crore for the implementation of the employment guarantee scheme. Rs 1284.75 crore for the energy sector, Rs 1477.57 crore for the general education sector.

Kerala to become a fully carbon-neutral state by 2050

Endosulfan victims to be taken under government care; all eligible benefits to be provided

The Planning Board will be reorganised as a think tank: VD Satheesan

Special housing scheme announced for fishermen; Rs 133.43 crore for Fisheries Department

Rs 102.88 crore for dairy development sector

10 crore rupees for AI ventures in Malayalam

Government allocates Rs 50 crore for various projects targeting Gen Zs

Kerala Knowledge Valley Project announced with ₹100 crore allocation to create opportunities for students within the State

Allocates Rs 15 crore for Kerala Disaster Resilience Center to combat and study natural disasters

₹25 lakh insurance coverage for all families under the Oommen Chandy Insurance Scheme, with an allocation of ₹10 crore

A plan has been announced to develop the Kochi–Aluva–Perumbavoor belt into a global furniture hub, with an allocation of ₹10 croreA plan has been announced to develop the Kochi–Aluva–Perumbavoor belt into a global furniture hub, with an allocation of ₹10 crore

Kerala School of Planning, Architectural and Design will be established under the PPP model, with an allocation of ₹2 crore

₹20 crore has been allocated for the Light Metro projects in Thiruvananthapuram and Kozhikode.

₹20 crore has been allocated for the Light Metro projects in Thiruvananthapuram and Kozhikode.

NRI Investment Trust Fund to be formed

Kerala Health and Life Science City will be set up to ensure a world-class healthcare system, with an allocation of ₹100 crore

10,000 MSME projects to be launched

• An Invest Kerala Cell will be formed.
• ₹50 crore has been allocated for the Wayanad Tribal University.
• ₹60 crore has been allocated for a research park on the lines of IIT models.
• ₹5 crore has been set aside for the space economy sector.
• ₹100 crore has been allocated for the Kerala Knowledge Valley.

A comprehensive land management policy will be formulated and a land bank will be established.

Rs 100 crore for development of renewable energy sources

Global Job Watch Tower; Rs 2 crore for state-level Future Skills and Employment Intelligence Mission

The Kerala government has announced plans to formulate a new land policy under the banner of 'Land Reforms 2.0', aimed at modernising land management, improving land utilisation and addressing emerging development and investment needs.

The Kerala government has announced plans to establish an international football stadium in the Malabar region, aiming to strengthen sports infrastructure and promote football development in one of the state's strongest footballing hubs.

A comprehensive Kerala Maritime Policy will be drafted to guide the development of ports, shipping, logistics and the wider maritime economy.

The government has proposed measures to further develop inland water transport as part of efforts to improve sustainable and cost-effective connectivity across the state.

A Global Convention Centre will be constructed near Kochi International Airport to strengthen Kerala's position as a destination for business events, conferences and exhibitions.

The government has announced plans to develop a Southern Kerala Economic Corridor aimed at boosting investment, connectivity and economic growth across the region.

The Budget allocates Rs 200 crore to transform Kerala into an aviation logistics hub, with a focus on improving cargo handling, connectivity and logistics infrastructure to boost trade and investment.

Chief Minister V D Satheesan announced that the government will formulate a comprehensive Kerala Maritime Policy to support port-led development, maritime trade and logistics.

The Kerala government has earmarked Rs 100 crore for the development of a Rare Earth and Critical Minerals Corridor aimed at strengthening the state's role in strategic mineral processing and industrial growth.

The government has announced plans to further develop the ports of Vizhinjam, Azhikkal and Beypore as part of its broader strategy to strengthen Kerala's maritime infrastructure and boost port-led economic growth.

Rs 50 crore to establish a maritime museum in the state

The Kerala government has announced plans to establish a shipbuilding hub with the goal of developing capabilities for mother ship construction. The project is expected to boost the state's maritime sector and create employment opportunities. Satheesan said that coastal communities will receive job reservations in such maritime and shipbuilding-related employment centres.

The government aims to transform Kerala into a major force on the global maritime map within the next five years. The vision includes developing a comprehensive maritime economy integrating road, sea, rail and inland water transport networks. To strengthen connectivity to the Vizhinjam Port and link it with key regions across the country, the government will expedite land acquisition for the Thiruvananthapuram Outer Ring Road project: VD Satheesan

The primary goal of Mission Samudra is to transform Kerala into a global maritime and logistics hub by capitalizing on its 600-km coastline and extensive network of 44 rivers. Chief Minister VD Satheesan announced the 'Mission Samudra' initiative to integrate Kerala's ports and strengthen the state's maritime economy. The Budget earmarks Rs 400 crore for the project, with a focus on boosting sea transportation, implementing a comprehensive maritime policy and safeguarding employment opportunities for coastal communities.

Chief Minister V D Satheesan said the government would undertake reforms to revamp the functioning of KIIFB, while noting that Kerala's total debt burden has risen to Rs 5.07 lakh crore.

Kerala is facing severe financial crisis: VD Satheesan

VD Satheesan begins budget presentation

VD Satheesan reaches state Assembly. 

The first budget of the V D Satheesan Government will begin at 9.00 am today. 

The new government is unlikely to impose additional tax burdens on the public in its first Budget. Previous increases in fuel cess and the fair value of land had triggered widespread criticism and public protests across the state. As a result, there is a broad expectation that the Budget will avoid introducing new taxes or cesses that directly impact ordinary citizens, especially amid concerns over inflation and the rising cost of living.

VD Satheesan Govt’s maiden budget today: Focus likely on port projects, high-speed rail

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Scientific coastal protection measures may be introduced for Thiruvananthapuram. Long-term coastal defence systems could replace temporary seawalls to tackle coastal erosion more effectively.

The government may announce plans for mega logistics parks and free trade zones to boost investment and trade. Warehouses, container freight stations and cold-storage hubs could be developed along the Thiruvananthapuram Outer Ring Road corridor.

Artificial Intelligence (AI) could be deployed to improve ease of doing business and streamline government services. The government is expected to accelerate the digitalisation of administrative processes. Measures may be announced to reduce delays in file processing and improve service delivery. Land records could be shifted to a blockchain-based system to enhance transparency and efficiency. An AI-powered public portal may be launched to help citizens track welfare applications, public grievances and government spending.

Kozhikode may be developed as a major healthcare hub. Incentives could be announced to attract pharmaceutical and IT companies to the region. The Budget may allocate land and funds for the proposed AIIMS project promised by the Centre.

The timely disbursal of pending welfare pension arrears remains a key demand of pensioners. A substantial amount is currently outstanding under this category. The Budget is expected to allocate funds to clear these arrears, either fully or in phases. There is also speculation that the government may announce a modest increase in welfare pension payments to provide relief amid rising living costs. Meanwhile, it is highly unlikely government will consider increasing the pension age. 

Rising prices remain one of the biggest challenges facing Kerala. The state is among those with the highest inflation rates in the country. The conflict in West Asia and the surge in crude oil prices have contributed to an increase in the cost of fuel and essential commodities. Controlling inflation is expected to be one of the government's key priorities in the Budget. To help curb the rising prices of everyday essentials, the government may announce additional subsidies and financial support for public distribution agencies such as Supplyco.

Satheesan said the UDF government faces the daunting task of finding an additional Rs 20,500 crore to implement projects worth around Rs 35,000 crore proposed in the previous Budget. Describing the challenge as "almost a miracle", he said the state is operating under severe financial constraints and will need to mobilise substantial resources to fund development projects while fulfilling its commitments.

Budget presentation follows the release of a White Paper that described Kerala's finances as being under severe stress

• Rs 1,000 monthly assistance for college-going girl students
• Oommen Chandy Health Insurance Scheme with coverage up to Rs 25 lakh per family
• Interest-free loans up to Rs 5 lakh for young entrepreneurs and small businesses
• Increase in social welfare pension to Rs 3,000 per month

All eyes on whether the government unveils any of its flagship 'Indira Guarantees' promised during the Assembly election campaign

Budget comes less than a month after the UDF assumed office on May 18

Kerala Finance Minister and Chief Minister VD Satheesan to present the first Budget of the new UDF government today