Kerala Budget 2026: FM Balagopal hails 'New Kerala', stresses unity as State's greatest asset

Thiruvananthapuram (Kerala) [India], January 29 : Presenting the Kerala Budget 2026 in the State Assembly, Finance Minister KN Balagopal said on Thursday the State has witnessed transformative progress over the last decade, creating a "new normal" across sectors.
He emphasised that the progress achieved across all spheres of people's lives over the last 10 years is remarkable and cannot be compared with what Kerala was like.
"Today's Kerala is not the Kerala of ten years ago. In every sector, Kerala has created a new normal. The progress achieved in all spheres of people's lives is remarkable, so much so that even the old normal cannot be compared with it. During this session of the Assembly, we wish to discuss the changes that have taken place in every development sector. With facts, figures, and examples, we are prepared to present the proud achievements Kerala has attained. We are ready to patiently listen to what the opposition has to say. If such a discussion takes place in the Assembly, it will be a good model of democracy," he said.
Emphasising social unity as Kerala's most valuable asset, Balagopal warned against divisive forces while expressing confidence in the state's financial resilience.
Balagopal said that maintaining peace, tranquillity, religious harmony, and unity is the strongest guarantee of future growth and prosperity.
"There are more messages of happiness to be shared in the new budget speech. However, before moving on to that, there is a danger that concerns the people of Kerala and one that needs to be approached with caution, which I wish to speak about. No matter how many budgets are presented or how many crores are spent, there is an asset that Kerala has which cannot be obtained through any of that. That great asset is the unity of the people of Kerala. The ability to maintain peace, tranquillity, religious harmony, and unity is the biggest guarantee of our future growth and prosperity. There is no need to think of any better factor than this to attract foreign tourists, entrepreneurs, and capital to our state. But venomous communal serpents are lying in wait to destroy this collective unity of Kerala. The new strategy being taught by election experts is to brand those who build a people's unity as a shield against communalism. We dismiss such branding with contempt," he said.
The Kerala Finance Minister also accused the Centre of "choking" the state government by denying funds.
"By cutting the previously fixed borrowing limit and denying legitimate arrears, the central government is attempting to choke the state government. All this is temporary. It should be seen only as a stealth attack during the election period," KN Balagopal said.
Calling it his sixth budget, Balagopal said the government has largely fulfilled its electoral promises and continues to pursue carefully planned programmes aimed at inclusive growth and long-term prosperity.
"I am presenting the budget with great happiness and pride. This is the sixth budget that I am presenting. Each budget I have presented on behalf of the state government has been an announcement of carefully planned programmes aimed at fulfilling the promises made to the people during the election period. We have presented before the people the progress achieved in implementing the commitments made in the election manifesto. The progress reports presented during the tenure of the previous government have been widely discussed. With the satisfaction that the promises made have been almost fully implemented, today's budget is being presented," he said.
Highlighting reforms in the Budget, FM Balagopal stated that Rs 3,820 crore has been allocated for the women's security welfare pension.
"Rs 400 crore is allocated for the Chief Minister's 'Connect to Work' scholarship scheme and Rs 14,500 crore is allocated for disbursing welfare pensions for the year 2026-27," he said.
According to the Budget, a pay hike will be implemented as follows: Rs 1,000 for Anganwadi workers, Rs 500 for Anganwadi helpers, Rs 1,000 for pre-primary teachers, and a Rs 1,000 increase in the monthly honorarium of ASHA workers.
Further, a Rs 25 increase in daily wages for school mid-day meal workers and a Rs 1,000 increase in monthly wages for literacy promoters have been included in the Budget.