Kerala Budget 2026-27: Pay hike for ASHA, Anganwadi workers; ₹100 cr for TVM-Kasaragod high-speed rail
KERALA Finance Minister KN Balagopal presented the state’s 2026-27 budget in the Legislative Assembly on Thursday, unveiling a welfare-heavy roadmap ahead of the upcoming assembly elections.
Terming the state’s progress a “new normal,” Balagopal earmarked Rs 14,500 crore for social security pensions while slamming the Central government for “strangling” the state’s finances through tax revenue cuts.
During his speech, Balagopal was vocal about the “severe neglect” by the Centre, stating that despite a reduction in tax revenues, Kerala has continued to develop.
“Today’s Kerala is not the Kerala of 10 years ago,” he noted, emphasizing that the state has witnessed transformative progress across all sectors.
Welfare Boost for Frontline Workers
In a significant move for grassroots workers, the sixth budget of the second Pinarayi Vijayan-led government announced a monthly honorarium hike of Rs 1,000 for ASHA and Anganwadi workers. Anganwadi helpers will see an increase of Rs 500.
The education sector also received a boost with a Rs 1,000 monthly hike for pre-primary teachers and literacy mission motivators. Additionally, the daily wages of school cooking staff have been raised by Rs 25.
Infrastructure & Women’s Safety
A major highlight is the shift in the state’s rail strategy. The government has allocated Rs 100 crore for the preliminary work of the Regional Rapid Transit System (RRTS). This 583-km high-speed corridor, modelled after the Delhi-Meerut system, is set to replace the stalled SilverLine project and will be implemented in four phases.
Budget may double down against external threats
For women’s safety, the Chief Minister’s Stree Suraksha Scheme received an allocation of Rs 3,700 crore, alongside a broader Rs 3,820 crore set aside for women’s welfare pensions.
Key Takeaways from Kerala Budget 2026-27
Category Allocation / Announcement
Social Security Pensions: ₹14,500 Crore
Stree Suraksha Scheme: ₹3,700 Crore
Health Sector: ₹2,500 Crore
ASHA & Anganwadi Workers: ₹1,000 monthly hike
RRTS (Thiruvananthapuram-Kasaragod): ₹100 Crore for initial works
Education: Free degree education for Arts & Science students
Rural Employment: Budget increased by ₹1,000 Crore
Environment: ₹250 Crore for Forest and Wildlife protection
Balagopal on Kerala Budget
The Kerala FM stated that the government is working to enhance living conditions and development outcomes across Kerala.
“We are trying our best to improve the living conditions and development of the state of Kerala. We did that in every budget,” as quoted by ANI. He also claimed that over the last decade of LDF rule, there has been broad-based improvement, saying growth has touched “common people, old people, students, workers and the downtrodden.”
It has also impacted modern technology as well as infrastructure development.
Here are the key highlights from the budget:
Honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers has been hiked by ₹1,000 per month, and that of Anganwadi helpers by ₹500.
The pay of pre-primary teachers and literacy mission motivators has been increased by ₹1,000 per month.
Daily wages of school cooking staff have been raised by ₹25 per day
The health sector gets a total allocation of ₹2,500 crore.
₹80 crore for eggs and milk for Anganwadi children.
₹3,700 crore for the Chief Minister's Stree Suraksha Scheme.
Life and health insurance schemes for all categories of people, including school children.
Allocation for the rural employment scheme increased by ₹1,000 crore.
The LDF government's annual expenditure stands at ₹1.69 lakh crore.
Balagopal introduces the Elderly Budget, focusing on the welfare scheme for senior citizens. ₹30 crore allocated to provide subsidies for groups setting up retirement homes for the elderly
₹20 crore set aside to set up a V.S. Centre in Thiruvananthapuram.
Rare earth corridor connecting Chavara in Kollam and Kochi to be set up.
₹100 crore earmarked for starting the preliminary works of the Rapid Rail Transport System
'Work near home' will be expanded to 200 centres next year, for which ₹150 crore has been earmarked.
₹20 crore allocated for setting up skill centres at the panchayat level for women.
₹20 crore allocation for setting up gig hubs for gig workers to unwind during their hectic working hours.
₹40,000 scrappage bonus for auto drivers to convert the fossil fuel-powered autorickshaws to electric.
The Advocate welfare pension scheme will be increased to ₹20 lakh from the current ₹10 lakh in phases.
Free education scheme to be introduced in arts and science colleges.
₹153 crore announced for coastal development projects in Kerala.
₹100 crore allocated for various projects to reduce human-wildlife conflict.
₹30 crore for Sabarimala master plan development works.
Allocation of ₹1238 crore for the Kerala State Electricity Board.
Allocation for the MSME sector has been increased to Rs 310 crore.
Allocation of ₹63 crore for the three IT parks in the state — Thiruvananthapuram Technopark, Kochi Infopark and the drone research park at Kottarakara in Kollam.
₹10 crore for exploring the possibility of the Kattapana-Theni tunnel road.
