Kerala budget proposes review of land fair value, e-Stamping facility for pvt insurance firms & NBFCs

Kerala Chief Minister V D Satheesan has said that the land fair value in the state will be reviewed. Technical and market value data assessment will be carried out to address disparities in fair value across the state, Satheesan said in his budget speech on Friday.

All the pending appeals under the Kerala Stamp Act will be settled before October 2026. The e-Stamping facility will be extended to private insurance companies and Non-Banking Financial Institutions. All the dues for under-valuation in property transactions will be recorded as 'charge on property'. This will spread awareness among prospective buyers on the liabilities related to the land.

Satheesan has announced a scheme to provide financial assistance to those aged above 40 for yearly medical check-ups in the revised budget for 2026-27. He also declared that a new Medical College will be established in Haripad.

Announcing steps to declare Kerala a carbon-neutral state by 2050, he said soil carbon sequestration steps will be incorporated in agricultural practices. A budgetary allocation of ₹192 crore was made for use of scientific steps to mitigate human-animal conflict in Kerala.

In a bid to promote investments in Kerala, Chief Minister V D Satheesan has announced formation of a data-based 'Invest Kerala cell' in the revised budget for 2026-27. This will ensure projects in the pipeline and ready for implementation. The cell will also expedite steps for land acquisition, said Satheesan.

He also declared 'Kerala MSME growth scheme' as part of which 10,000 enterprises will get various aids like tax incentives, revolving fund, challenge fund etc.

He also revised the plan allocation from ₹35750cr to ₹30370cr, owing to the shortfall of ₹20,500cr in the revenue deficit grant. Satheesan said the government will make up for this shortfall with additional allocations for the SC/ST communities and fisherfolk.

Satheesan also announced 'Mission Samudra', a comprehensive project to tap Kerala's maritime potential in the revised budget for 2026-27.

He began the presentation of his government's maiden budget for 2026-27, underlining the deep fiscal crisis the state faces. He flagged the expected shortfall of ₹20,500 crore resulting from the previous government's miscalculation of the revenue deficit grant.

In his introductory speech, Satheesan was critical of the way in which the LDF government tried to inflate the plan expenditure by not including actual plan estimates in the budgetary allocation.

All these, along with a dip in remittance and looming inflation, have landed the state in a financial muddle. Satheesan, however, said the government has already started fulfilling its promises in spite of the hurdles by implementing promises under the Indira Guarantee scheme.

The Assembly will take up a general discussion on the revised Budget from June 22 to 24, followed by discussions and voting on Demands for Grants on June 29 and 30. The Appropriation Bill is scheduled for consideration on July 1.

Ahead of the Budget presentation, the government had tabled a white paper on the state’s finances, with the Chief Minister describing it as a status report on Kerala’s fiscal health. Titled “Kerala’s Fiscal Health: A Status Report”, the document recommends disinvestment, privatisation, or closure of public sector undertakings in non-strategic sectors.

However, it does not clearly outline a roadmap for restructuring PSUs with social and welfare obligations, such as KSRTC, KSEB, and the Kerala Water Authority, into commercially viable entities.

Despite the Budget having a plan size of ₹35,000 crore, the chief minister said that upon assuming office and examining the figures, the government had found that ₹20,000 crore of the total ₹35,000 crore was missing. All eyes are now on the Budget to see whether the UDF government’s pre-election promises translate into allocations for welfare schemes, as well as initiatives, and key policy commitments.