The Kerala Budget 2026–27 presented by Finance Minister KN Balagopal has allotted ₹1,871.53 crore for the transport sector. Spanning roads, bridges, railways, ports and inland waterways, the announcements focus on easing congestion, improving safety and enabling high-speed north–south connectivity. Flagship initiatives include the proposed Regional Rapid Transit System, large-scale upgrades to the MC Road, continued financial backing for KSRTC and investments aligned with the Vizhinjam port-led growth corridor.

Major infrastructure projects

• Regional Rapid Transit System (RRTS): A high-speed Regional Rapid Transit System connecting Thiruvananthapuram to Kasaragod will be implemented in four phases, modelled on the Delhi–Meerut RRTS. The first phase will link Thiruvananthapuram and Thrissur, followed by extensions to Kozhikode, Kannur and Kasaragod.
• NH66 expansion: Construction of National Highway 66 is progressing at pace. Kerala has become the first state in India to bear 25 percent of land acquisition costs, amounting to ₹5,580 crore.
• Vizhinjam Port Phase II: Following the anchoring of 611 container vessels, the second phase of the Vizhinjam International Seaport was inaugurated on January 24, 2026. The government aims to complete the project 17 years ahead of its original 2045 schedule.
• Kattappana–Theni tunnel road: A feasibility study has been sanctioned for a tunnel road project aimed at easing transport bottlenecks along hill highways and reducing travel distance by nearly 20 km. An allocation of ₹10 crore has been made for the study.
• Roads and bridges (Public Works Department): The Public Works Department has been allotted ₹1,182.43 crore for roads and bridges.
• Road upgrades: ₹300.50 crore is earmarked for the design and overlay of Main District Roads, while ₹87 crore is allocated for State Highways.
• Bridge reconstruction: ₹46.46 crore has been set aside for rebuilding ageing bridges. An additional ₹25 crore is earmarked specifically for bridges connecting tribal ‘Unnathi’ habitations.
• NABARD-funded works: ₹165 crore is allocated for road construction and maintenance, and ₹95 crore for bridge construction, using NABARD assistance.
• MC Road development
  • The budget places strong emphasis on upgrading the Main Central Road to ease congestion and improve north–south mobility.
  • Four-lane expansion: MC Road will be reconstructed as a four-lane corridor, 24 metres wide, from Thiruvananthapuram to Angamaly.
  • KIIFB funding: The first phase of the project is being implemented through the Kerala Infrastructure Investment Fund Board, with an allocation of ₹5,217 crore.
  • Bypasses and junction improvements: The initial phase includes bypasses at Kilimanoor, Nilamel, Chadayamangalam, Ayoor, Pandalam and Chengannur, along with multiple junction upgrades.
  • Kottarakkara bypass: Financial sanction of ₹110.36 crore has been accorded for the Kottarakkara bypass, with land acquisition progressing rapidly.

Road transport and safety

• Road safety: Allocation for road safety measures has been increased from ₹15 crore to ₹23.37 crore to curb accidents.
• Railway safety: Funding for railway overbridges and underpasses has been raised to ₹25 crore.
• KSRTC operational support: The government provides around ₹125 crore every month to KSRTC towards salaries and pensions. Total support during the tenure of the current government has reached ₹8,525.43 crore.
• Health insurance for drivers: A new, affordable health insurance scheme will be introduced for auto-rickshaw and taxi workers.

Ports and water transport

• Inland water transport: ₹138.14 crore has been earmarked for improving inland water transport infrastructure.
• Non-major ports: ₹65 crore is allocated for the development of non-major ports to tap opportunities arising from the Vizhinjam International Port.
• Greenfield port development: ₹6.96 crore is set aside for development activities at the Malabar International Port outer harbour at Azhikkal.

KSRTC

• Total financial assistance during the second Pinarayi Vijayan government stands at ₹8,525.43 crore, compared to ₹1,466.79 crore during the previous UDF tenure.
• Monthly financial assistance: Approximately ₹125 crore is provided every month to ensure timely payment of salaries and pensions.
• Salary disbursal: KSRTC employees now receive salaries on the first day of every month under the current administration.