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Presenting the revised Budget for 2026–27 in the Assembly, Kerala Chief Minister VD Satheesan, who holds the Finance portfolio, outlined the government's vision of building a "New Kerala" through inclusive economic growth and sustainable infrastructure expansion. Highlighting challenges such as mounting fiscal pressure, off-budget liabilities, declining remittances and inflation, he announced the launch of Mission Samudra, aimed at transforming Kerala into a major maritime and economic gateway.
The government has set aside Rs 400 crore for the initiative and plans to introduce a dedicated maritime policy focusing on the development of 13 non-major ports.The budget has also proposed an international maritime museum with an allocation of Rs 750 crore, JC Daniel International Film City in Kochi with an estimate of Rs 100 crore, and the creation of the MT Vasudevan Nair Cultural Park in Kozhikode with Rs 50 crore.
An expert committee will be established to improve the functioning of the Kerala Infrastructure Investment Fund Board (KIIFB). Satheesan said the government is burdened with the task of raising necessary funds to complete the projects valued at Rs 35,000 crore, being implemented by the KIIFB. According to Satheesan, the off-budget borrowing and debt of KIIFB are contributing to the economic instability of the state.
The Chief Minister said the government would pursue investment-led growth, mobilise additional resources and ensure that the benefits of development are shared across all sections of society.
The revised Budget places strong emphasis on agriculture, conservation and social welfare, with Rs 1,534.98 crore earmarked for the farm sector and the minimum support price of rubber raised to Rs 250 per kg. To strengthen environmental protection, Rs 243.80 crore has been allocated for forest and wildlife conservation.
Addressing the growing challenge of human-wildlife conflicts, the government has set aside Rs 192.20 crore to deploy advanced technologies and establish rapid response teams at identified hotspots. The budget also provides Rs 600 crore to offset losses incurred by KSRTC under the Priyadarshini free bus travel scheme for women and transgender persons. In a push to nurture a technology-driven economy, Rs 50 crore has been earmarked to support startups, innovation hubs, smart industries and entrepreneurship initiatives targeting the Gen Z workforce.
In addition, Rs 72 crore has been earmarked for a new culinary institute to train skilled chefs and strengthen the state's hospitality industry.
Special packages have been announced for backward districts of Idukki, Wayanad and Kasaragod focusing on health, education and livelihood.
An allocation of Rs 1,477.57 crore has been made for the general education sector. The Chief Minister also said school campuses will be made more friendly for girls by ensuring clean toilets and access to sanitary napkins.
The government has allocated Rs 25 crore to establish the Jawaharlal Nehru Centre for Scientific Temper, to promote scientific reasoning and transform Kerala into a global knowledge hub.
A key component of the UDF pre-election Indira Guarantees, the Oommen Chandy Health Insurance Scheme, which provides Rs 25 lakh in support to each family, was also announced. A preliminary allocation of Rs 10 crore has been made.