The Kerala Budget presented by Finance Minister KN Balagopal outlines a wide-ranging policy roadmap that balances fiscal consolidation with strong social welfare and infrastructure spending. From announcing the 12th Pay Revision Commission and a shift to an assured pension scheme, to allocating ₹5,217 crore for MC Road development and ₹14,500 crore for welfare pensions, the budget places equal emphasis on employee benefits, transport infrastructure, care economy and job creation.

Salaries, wages & employee benefits

• Anganwadi workers’ monthly wages increased by ₹1,000
• Anganwadi helpers’ monthly wages increased by ₹500
• ASHA workers’ monthly wages increased by ₹1,000
• Pre-primary teachers’ monthly wages increased by ₹1,000
• School kitchen workers’ daily wages increased by ₹25
• Literacy motivators’ monthly wages increased by ₹1,000
• Contract and daily wage employees to get 5% hike in daily wages
• Journalists’ pension increased by ₹1,500 per month
• Librarians’ monthly allowance increased by ₹1,000

Pensions & social security

• Welfare and social security pensions enhanced to ₹2,000 per month
• ₹14,500 crore earmarked for welfare pensions
• Cancer, leprosy, AIDS and TB patients’ monthly pension increased by ₹1,000

Pay revision, DA/DR & service conditions

• Five-year wage revision principle reaffirmed
• 12th Pay Revision Commission announced; report within three months
• All pending DA and DR arrears for employees and pensioners to be fully paid
• One DA instalment with February salary
• Remaining DA/DR instalments with March salary
• DA/DR arrears to be cleared in phases; first instalment in the budget year
• Government employees’ House Building Advance scheme to be restored

Pension reforms

• Assured Pension Scheme to replace contributory pension scheme from April 1
• Assured pension capped at 50% of basic pay
• Dearness relief to be allowed under assured pension
• Option to switch from NPS to assured pension

Health & social welfare

• Life Saver Scheme for road accident victims: cashless treatment for first five days
• ₹30 crore for SMA drug provision under KARE rare disease scheme
• MENOPAUSE clinics in district hospitals: ₹3 crore
• New health insurance scheme for families outside Karunya scheme limits: ₹50 crore
• Accident life insurance scheme for students (Classes 1–12): ₹15 crore

Care economy & elderly welfare

• Government subsidy for setting up retirement homes: ₹30 crore
• On-call volunteer services for elderly living alone: ₹10 crore

Women, children & family welfare

• Chief Minister’s Women Safety Scheme: ₹3,720 crore
• Kudumbashree marketing and distribution network: ₹22.27 crore

Local self-government & decentralisation

• General-purpose fund for local bodies: ₹3,237 crore
• Maintenance fund: ₹4,316 crore
• Plan fund: ₹10,189 crore
• Honorarium hike for panchayat members and councillors
• Welfare fund for former local body representatives

Transport & infrastructure

• Thiruvananthapuram–Angamaly MC Road development via KIIFB: ₹5,217 crore
• Bypasses at Kilimanoor, Nilamel, Chadayamangalam, Ayoor, Pandalam and Chengannur
• Thiruvananthapuram–Kasaragod RRTS preliminary works: ₹100 crore
• Kattappana–Theni tunnel road feasibility study: ₹10 crore

Urban development & governance

• Finance Tower to be set up in Kochi
• Sales tax check posts to be upgraded with advanced GST surveillance systems

Agriculture & allied sectors:Allocation for agriculture and allied sectors: ₹2,071.95 crore

Education & skill development

• Special enrichment programme for quality education in tribal areas: ₹60 crore
• Global school for skill development and training: ₹10 crore

Employment & livelihoods

• Work Near Home programme expansion: ₹150 crore
• Chief Minister’s Connect to Work Scholarship Scheme: ₹400 crore
• Additional ₹1,000 crore for employment guarantee scheme
• Gig hub with modern facilities for gig workers: ₹20 crore

Industry, technology & startups

• Kochi Infopark Cyber Valley (AI and advanced tech) via PPP: ₹30 crore
• Critical Minerals Mission: ₹100 crore
• Defence corridor: ₹50 crore

Ports, minerals & investment corridors

• Rare earth corridor linking Vizhinjam port with Chavara and Kochi
• Expected investments: ₹42,000 crore
• Employment generation target: ₹50,000 crore

Energy, environment & transport transition

• ₹40,000 one-time scrappage bonus for replacing old petrol and diesel autorickshaws with electric autos
• 2% interest subsidy on loans for electric autorickshaws
• Solar-based charging units at auto stands: ₹20 crore

Tributes, culture & research

• VS Centre in Thiruvananthapuram: ₹20 crore
• Sheikh Zainudheen Makhdoom II Historical Research Centre, Ponnani: ₹3 crore
• Ayyankali Study Centre: ₹1.5 crore
• Kavarikulam Kandan Kumaran Study Centre: ₹1.5 crore
• Mar Ivanios Museum: ₹1.5 crore
• Kerala Kalamandalam permanent venues: ₹10 crore
• Centre for Development Studies upgrade: ₹10 crore
• Revenue administration & citizen services
• Taxpayer awards and recognition: ₹5 crore
• Nativity card scheme for all Kerala residents: ₹20 crore

Macro economy & fiscal position

• Expected revenue receipts: ₹1.82 lakh crore
• Total expenditure: ₹2.4 lakh crore
• Effective capital expenditure: ₹30,961.48 crore
• Revenue deficit: ₹34,587 crore (2.12% of GSDP)
• Fiscal deficit: ₹55,420 crore (3.4% of GSDP)
• Increase in revenue receipts expected: ₹45,889.49 crore
• Own tax revenue increase target: ₹10,271.51 crore
• Non-tax revenue increase target: ₹1,595.05 crore