.
Kerala finance minister K N Balagopal on Thursday presented a people-focused budget for 2026–27, announcing major allocations for social security, employee welfare and development projects, as the state heads towards the upcoming Assembly elections.Presenting the sixth budget of the second Pinarayi Vijayan-led government in the Legislative Assembly, Balagopal announced a Rs 14,500 crore boost aimed at supporting social security pensioners and funding new community programmes. “The budget aims to ensure fair pay and financial security for government employees while continuing Kerala’s growth trajectory,” he said.
Pay Revision Commission to be formed
A key announcement in the Kerala Budget 2026–27 was the formation of the 12th Pay Revision Commission, continuing the state’s long-standing policy of revising government employees’ salaries every five years. The commission is expected to submit its report within three months to facilitate timely implementation.
DA and DR arrears to be cleared
The budget confirmed that all pending Dearness Allowance (DA) and Dearness Relief (DR) arrears for government employees and pensioners will be cleared. One instalment will be paid along with the February salary, while the remaining dues will be disbursed with the March salary. The House Building Advance for employees will also be reinstated.
Assured Pension Scheme to Replace NPS
On pensions, Balagopal formally announced the Assured Pension Scheme, which will replace the National Pension System (NPS) for eligible employees. Under the scheme, retirees will receive up to 50 per cent of their last drawn salary, including Dearness Relief.Employees currently under the NPS will be given the option to switch to the Assured Pension Scheme, with detailed guidelines to be issued by April 1.
Honorarium and wage hikes for workers
The budget proposed increases in honorarium and wages for several categories of workers:
- ASHA and Anganwadi workers: Rs 1,000 monthly increase
- Anganwadi helpers: Rs 500 monthly increase
- Pre-primary teachers and literacy mission motivators: Rs 1,000 monthly hike
- School cooking staff: Daily wages increased by Rs 25
Welfare and social security allocations
A major welfare allocation of Rs 3,700 crore was announced for the Chief Minister’s Stree Suraksha Scheme. The budget also provided an additional Rs 1,000 crore for the rural employment scheme compared to previous years.Other key announcements include life and health insurance schemes for all categories of people, including school children, and free degree education in arts and science colleges.In terms of infrastructure and regional development, the budget earmarked Rs 100 crore for initial works related to the Regional Rapid Transit System (RRTS) from Thiruvananthapuram to Kasaragod, which received in-principle approval from the state cabinet on Wednesday. Around Rs 150 crore has been allocated for coastal development, while over Rs 250 crore has been set aside for forest and wildlife protection. Go to Source
