Revised Budget Highlights
2026-27 (Revised)

Highlights Financial Proposals 

  • Mission Samudra: ₹400 crore allocated to transform Kerala into a global maritime hub, integrating ports, logistics, and coastal communities with reserved employment.
  • Maritime Museum: ₹50 crore for an International Maritime Museum showcasing Kerala’s maritime legacy and shipbuilding traditions.
  • Southern Kerala Economic Corridor: ₹50 crore for an integrated economic zone across Thiruvananthapuram, Kollam, and Alappuzha; ₹100 crore for Rare Earth & Critical Minerals Corridor.
  • Aviation Hub: ₹200 crore to develop Kerala as South India’s aviation-logistics hub, including Aeropark, Aerocity, MRO, pilot training, and cargo facilities.
  • Invest Keralam: Creation of a single-window investment cell to streamline land acquisition, clearances, and investor support, chaired by the Chief Minister.
  • Kerala MSME Growth Scheme: ₹100 crore to establish 10,000 new MSMEs with tax incentives, revolving funds, and mentorship support.
  • One Kerala Karuthal Mission: ₹1 crore for a transparent, tech-driven welfare platform delivering direct aid for healthcare and education to the poorest.
  • Global Job Watch Tower: ₹2 crore for a Future Skills and Employment Intelligence Mission tracking global job trends and aligning education with industry needs.
  • Space Economy: ₹5 crore to support private satellite manufacturing, launch enterprises, and strengthen Kerala’s Space Park.
  • Kerala Knowledge Valley: ₹100 crore to establish a world-class higher education hub attracting global universities and fostering industry-academia collaboration.
  • Wayanad Tribal University: ₹50 crore for a Tribal University and Indigenous Knowledge Zone promoting tribal entrepreneurship, biodiversity, and cultural preservation.
  • Kerala Health & Life Sciences City: ₹100 crore to build Asia’s largest integrated healthcare ecosystem combining hospitals, research, and medical tourism.
  • Research Park: ₹60 crore to expand innovation ecosystems modeled on IIT Madras Research Park, linking colleges and industry for job creation.
  • Kerala Silver Economy: Policy framework to harness senior citizens’ expertise, promote geriatric healthcare, elder entrepreneurship, and retirement infrastructure.

Indira Guarantee & Welfare

  • ₹600 crore allocated for free KSRTC travel for women and transgender persons.
  • Anganwadi workers/helpers honorarium increased by ₹1,000; allocation ₹66.20 crore.
  • ASHA workers' honorarium increased from ₹9,000 to ₹12,000; allocation ₹78.40 crore.
  • Noon meal cooks' wages increased by ₹1,000; allocation ₹13.30 crore.
  • Pre-primary teachers and ayahs receive ₹1,000 honorarium increase; allocation ₹4.72 crore.

Governance Reform

  • State Planning Board to be reconstituted as a Government Think Tank to monitor priority projects and connect civil society with government.

Agriculture & Allied Sectors

  • Rubber support price increased from ₹200 to ₹250 per kg.
  • Incentives for export-quality fruits and flowers.
  • New procurement centres for coconuts, procurement price hiked
  • Krishi Sakhi programme for women farmers.
  • Adoption of AI, drones and IoT in agriculture.
  • Farm tourism and youth-oriented agriculture schemes.
  • Kerala Carbon Farming and Soil Credit Framework introduced.

Animal Husbandry & Dairy

  • Modern poultry processing plant and pet food factory at Kottukkal, Kollam.
  • New livestock, poultry and women empowerment schemes.
  • Dairy Development allocation: ₹102.88 crore.
  • Target to increase milk production from 70 lakh litres/day to 1 crore litres/day in three years.
  • Ksheera Santhwanam welfare scheme for dairy farmers.

Fisheries

  • Kerosene subsidy increased to ₹75.
  • Special housing scheme for fishermen.
  • Pattayam for all eligible coastal residents.
  • Wage compensation during government-imposed fishing restrictions.
  • Coastal protection works and Muthalapozhi Harbour corrections.
  • Fishing harbour at Poonthura

Forest, Environment & Hill Farmers

  • ₹192.20 crore for human-wildlife conflict mitigation.
  • Zero-tolerance policy against pollution.
  • Kerala to become carbon neutral by 2050.
  • Faster pattayam distribution in hill areas and regularisation of existing constructions on patta land.
  • Government to take up responsibility for care of endosulfan victims

Rural Development

  • ₹1,422.60 crore State contribution to employment guarantee scheme.
  • Online Grama Sabha participation facility.
  • ₹5 crore Vilangad rehabilitation package.
  • Faster implementation of Wayanad, Kasaragod and Idukki special packages.

Co-operation

  • Deposit Guarantee Scheme reforms.
  • "100% Energy Self-Sufficient Co-operative Societies" initiative.
  • Promotion of Public Co-operative Partnership (PCP) projects.

Irrigation & Energy

  • Neyyar Irrigation Project modernization.
  • Energy sector allocation: ₹1,284.75 crore.

Industry & IT

  • Cyberpark Kozhikode to be upgraded to Infopark/Technopark standards.
  • Cashew industry revival package.
  • Support for coir, handloom, handicrafts and pottery sectors.
  • ₹35 crore Price Stabilisation Fund for coir sector.
  • ₹10 crore for incubation centres and start-up support.
  • Investment Advisory Council to be formed with industrialists and experts
  • MSME Growth scheme to promote 10000 MSEs (Rs.. 100 crore)
  • Special Investment Zone and Land Pooling for industries
  • NRI Investment Trust

Transport

  • Introduction of Hydrofoil water transport.
  • Comprehensive traffic policy.
  • ICT modernization of Motor Vehicles Department.
  • Dedicated tax intelligence and investigation wing.

Tourism

  • Tourism to be declared an industry.
  • Pilgrimage Tourism Circuit in Alappuzha region.
  • Expansion of Muziris Heritage Tourism Project (₹19 crore).
  • Green Marshals programme.
  • Promotion of eco-tourism, rural tourism, Brand Wayanad and AI-enabled tourism platforms.

Education & Research

  • Menstrual Hygiene Initiative for girls.
  • Jawaharlal Nehru Centre for Scientific Temper (₹25 crore).
  • Higher education reforms focused on employability, AI, biotechnology and research.
  • Anti-ragging reforms including Sidharthan Student Distress App and legislation.
  • Technical Education allocation: ₹232.11 crore.
  • Jawaharlal Nehru Scientific City: ₹10 crore.
  • Culinary Institute to be set up

Art, Culture, Sports

  • ₹10 crore for Thekkinkadu Maidan renovation.
  • ₹5 crore support for Sivagiri Platinum Jubilee Convention Centre.
  • Sports & Youth Affairs allocation: ₹173.77 crore.
  • Vision 2036 programme to prepare Olympic athletes.

Health

  • Rs. 25 lakh insurance coverage for all families.
  • Strengthening medical colleges in Kasaragod, Idukki, Wayanad and Manjeri.
  • Second Medical College in Thiruvananthapuram to become operational.
  • New Medical College at Haripad.
  • ₹100 crore allocation for these initiatives.
  • Launch of Reach Kerala health tourism initiative.
  • Medicep scheme to be revised
  • Cancer Centre at Malappuram

Other proposals:

  • Maritime Policy to be drawn up.
  • Proposals for light metro in Trivandrum and Kozhikode to be revived.
  • Standards of all PWD roads to be improved.
  • Sky way at Chinnakkada in Kollam
  • Parks, day care and fitness cetres for the elderly.
  • Rs. 10 crore for Department of Elderly Welfare
  • Football stadium of International standards in Malabar
  • JC Daniel International Film City in Kochi (Rs. 100 cr)
  • Johnson Master Music Academi
  • Global gold hub
  • Rs. 10 cr for Malayalam AI development
  • Planning Board to be revamped.

 
  • Flood Cess Arrears Settlement Scheme (2026): Complete waiver of interest and penalty on arrears from the 1% Flood Cess (levied Aug 2019–July 2021), if taxpayers remit the full principal by 31 March 2027.
  • Small Arrear Waiver Scheme (2026): Full waiver of arrears between ₹50,000–₹2,00,000 (plus interest/penalty) under pre-GST laws, excluding liquor sales, for assessment orders up to FY 2017–18.
  • Low Strength Alcohol Tax (KGST Act, 1963):
    • 120% sales tax for beverages with alcohol strength 0.5%–10% v/v.
    • 175% sales tax for beverages with alcohol strength 10%–20% v/v.
  • Motor Vehicles Department – Bus Taxes:
    • Stage carriage buses: 50% concession on quarterly tax.
    • All India Tourist Permit (AITP) buses: tax reduced from ₹2,000 → ₹900 per seat, and ₹3,000 → ₹1,500 per sleeper.
  • Trailer Vehicle Taxes: Unified slab – ₹2,550 + ₹130 per 250 kg excess (removing higher slab for >20 tons).
  • Electric Vehicle Road Tax Revision:
    • Up to ₹10 lakh: reduced from 5% → 3%.
    • ₹15–20 lakh: reduced from 8% → 5%.
    • Above ₹40 lakh: increased from 10% → 15%.
    • Other slabs unchanged at 5% for vehicles costing between ₹10–15 lakh & 10% for ₹20-40 lakh bracket
  • Concession for Differently-Abled Persons: Vehicle value limit for tax concession raised from ₹7 lakh → ₹15 lakh.
  • E-Challan Amnesty Scheme: Citizens can settle pending challans by paying 50% of the amount.
  • Registration Department – Stamp Duty Reforms:
    • One-Time Settlement Scheme for 1,46,355 undervaluation cases (₹703 crore dues).
    • Waiver of additional stamp duty for cases before 31 March 2010 where liability < ₹10,000.
    • Extension of 4% concessional stamp duty to K-RERA registered eco-friendly villas.
    • Interest of 1% per month on unpaid deficit stamp duty after final order.
    • Increase in stamp paper vendor ceiling from ₹1 lakh → ₹3 lakh.
    • Expansion of e-stamping to private insurance companies and NBFCs.
  • Tax intelligence cell to check tax evasion
  • Plan Outlay revised downward from ₹35,750 crore to ₹30,370 crore due to revenue shortfall.
  • Cumulative deficit: Rs. 1,504.63 crore.


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