Kerala Budget 2026: ₹1,000 hike for anganwadi, ASHA workers, ₹14,500 cr outlay for welfare pension
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Thiruvananthapuram: The Pinarayi Vijayan-led LDF government’s final Budget presented by Kerala Finance Minister KN Balagopal placed a strong emphasis on welfare, with key announcements including a ₹1,000 hike in the monthly wages of anganwadi workers and ASHA workers, a ₹500 increase for anganwadi helpers, and an allocation of ₹14,500 crore for social security pensions.
Welfare spending dominated the Budget proposals, with a significant boost to pensions and social security schemes. Apart from the enhanced allocation for social security pensions, the government earmarked ₹3,820 crore for the Chief Minister’s Sthree Suraksha Scheme, reinforcing its focus on women-centric welfare initiatives. The daily wage of cooking staff in government schools has also been increased by ₹25.
In a first-of-its-kind move, the Budget introduced a separate elderly budget, making Kerala the first state in the country to present a dedicated budget focusing exclusively on senior citizens.
The government also announced enhanced financial support for local self-governments. Central purpose funds allotted to local body institutions have been raised to ₹3,236.76 crore, while maintenance funds have been increased to ₹4,315.69 crore for the 2026–27 fiscal. A special development fund will be created for district panchayats, the honorarium of elected representatives in local bodies will be increased, and a welfare fund will be launched for former local body representatives.
Expanding the social security net further, the government decided to extend pension benefits to nuns and other women residing in faith homes such as convents and monasteries. It also announced that loans of survivors of the Wayanad landslides would be settled, providing relief to families affected by the disaster.