Thiruvananthapuram: The first budget of the V D Satheesan govt laid bare the UDF’s development vision — one that seeks to harness the opportunities offered by a market-driven economy while pledging robust welfare support for women and vulnerable sections. Presenting the revised budget for 2026-27, chief minister and finance minister Satheesan said it would serve as a “definitive blueprint” for the development and welfare initiatives to be implemented across the state over the next five years.Opening his budget speech, Satheesan unveiled the govt’s vision of a new Kerala (Puthiya Keralam), where economic growth and social justice go hand in hand, backed by modern and environmentally sustainable infrastructure. He said the govt would pursue a progressive strategy centred on technology-driven reforms in healthcare and education, job creation, improved care for senior citizens, and the social and economic inclusion of marginalised and backward communities.Accusing the previous LDF govt of distorting budgetary figures, Satheesan said he had inherited a revenue shortfall of Rs 20,500 crore. He revised the plan outlay for 2026-27 to Rs 30,370 crore from the Rs 35,750 crore proposed in the budget presented by the LDF govt in Jan. He also reiterated the govt’s commitment to restructuring the Kerala Infrastructure Investment Fund Board (KIIFB) and announced the constitution of an expert committee to recommend comprehensive structural reforms and an overhaul of its operational framework.At the heart of the budget is a strategy to position the blue economy as Kerala’s principal growth engine. The govt announced Mission Samudra, an ambitious initiative to transform the state into a major global maritime hub within five years. Envisioning Kerala as an integrated “port city”, the mission proposes seamless connectivity between road, rail, sea and inland waterways, linked to manufacturing clusters and greenfield cities to drive a maritime-led economy.Satheesan said a comprehensive maritime policy for developing the state’s four key non-major ports –Vizhinjam-Kovalam, Kollam, Beypore and Azhikkal –would be unveiled soon.Another major announcement was the proposal to establish a Southern Kerala Economic Corridor and a Rare Earth and Critical Minerals Corridor spanning Thiruvananthapuram, Kollam and Alappuzha districts. Satheesan said the region’s deep-water port at Vizhinjam, coastal critical mineral deposits, rare earth reserves, space and technology institutions and blue economy potential made it ideally suited for integrated industrial clusters. The proposal also envisages greater private investment in the space sector. Opposition leader Pinarayi Vijayan has already alleged that the govt is attempting to open rare earth and critical mineral mining to the private sector.The budget also proposes sweeping reforms in land ownership, land-use regulations and conversion norms under a proposed Land Reforms 2.0 policy. The govt also plans to revise the fair value of land across the state.In the social sector, the budget proposes reviving several healthcare programmes introduced by previous UDF govts and creating a mechanism to channel financial contributions from individuals and organisations towards medical treatment and education for economically weaker sections.To improve youth employability, the govt announced measures to strengthen skilling and job readiness. It also reiterated its plan to attract foreign universities by establishing a Kerala Knowledge Valley, an education metropolis, and promised fast-track amendments to the Private Universities Bill to facilitate the project.Among the other proposals are a tribal university and an indigenous zone in Wayanad, aimed at integrating education with livelihoods, technology and social development while preserving tribal culture and traditional knowledge systems. The budget also proposes setting up a Kerala Health and Life Sciences City, envisioned as an integrated healthcare ecosystem that the govt hopes will emerge as Asia’s largest medical destination. An international film city in Kochi also figures among the marquee projects.The revised budget, covering the remaining nine months of the financial year, does not propose significant new revenue mobilisation measures, apart from lowering the tax on low-alcohol beverages compared with hard liquor. Asked about the absence of fresh revenue proposals, Satheesan said the development projects themselves would stimulate economic growth and generate additional revenue.Among the key welfare measures, the budget allocates Rs 600 crore for free travel for women and transgender persons on KSRTC buses, announces the Oommen Chandy Health Insurance Scheme, offering health coverage of up to Rs 25 lakh for every family, introduces the She Scooter scheme for women engaged in fish vending, increases the kerosene subsidy for fishers, revives housing projects for SC/ST communities and fishers, reduces taxes on electric vehicles and significantly cuts the tourist permit tax for luxury buses.
