Raising social security pensions “step by step” to a monthly ₹2,500 had been the Left Democratic Front’s (LDF) big promise in the run-up to the 2021 Assembly elections. Having won the elections convincingly, the LDF, which formed the government, raised the pensions from ₹1,600 to ₹2,000 eventually just as its five-year term was drawing to a close. The hike was part of a clutch of welfare measures that Chief Minister Pinarayi Vijayan announced in the State Assembly in October 2025 ahead of the crucial local body elections in December. Welfare sops were liberally sprinkled across the 2026-27 State Budget presented in January this year as well.
As Kerala heads towards the 2026 Assembly election, welfare measures — including social security pensions — are once again back in the spotlight. Rahul Gandhi, the Leader of Opposition in the Lok Sabha, has already promised Kerala five basic ‘welfare guarantees’ which include raising the welfare pensions to ₹3,000 if the United Democratic Front (UDF) came to power. Major fronts. including the National Democratic Alliance (NDA) are yet to formally publish their election manifestos, but it is a forgone conclusion that social welfare would feature prominently in them.
But to what extent would these contending promises influence voters in the present highly politically charged election scene remains the big question as poll day draws nearer. On the campaign trail across Kerala, LDF candidates have been highlighting the welfare measures implemented by Mr. Vijayan’s government. In addition to increasing the welfare pensions, the government had announced raises in the monthly wages of ASHA workers, pre-primary teachers, Anganwadi workers and helpers and Saksharatha Preraks and noon meal workers.
On the Congress’s part, Mr. Gandhi’s five assurances made on March 7 included a health insurance scheme as well as free travel for women on the buses operated by the Kerala State Road Transport Corporation.
Pensioners would naturally welcome even small increases in their monthly payments, but the crux of the issue lies in who makes the promises and who is more likely to keep them, says L.N. Selvaraj, a 68-year-old pensioner from Thiruvananthapuram district. “Nonetheless, there is no doubt that for elderly people these pensions are a boon, as they can meet expenses to a certain extent without having to depend on their children,” he says.
Raising doubts
At the other end of the spectrum, economists and political scientists tend to question the rationale of such poll promises, given the huge cost involved in implementing and sustaining them. Finance Minister K.N. Balagopal had pegged the total outgo on the welfare measures announced by Mr. Vijayan in October 2025 at “not less than ₹10,000 crore.” Increasing the social security pensions from ₹1,600 to ₹2,000 per beneficiary alone entailed an additional burden of ₹3,000 crore per annum.
The latest Fiscal Health Index, published by the NITI Aayog this month, lists Kerala among the States that face “face persistent fiscal stress due to rising debt, sustained deficits, and modest revenue growth.” In the national rankings, Kerala languishes towards the bottom of the list. Its fiscal position reflects the challenge of balancing strong social and developmental commitments with limited fiscal flexibility. While the State has consistently maintained focus on developmental and social spending, the scale of capital investment remains relatively modest when compared to other States. “The quantum of committed expenditure on salaries and wages, pension and interest payments constituted 55% to 68% of revenue expenditure during 2019-20 to 2023-24,” it said.
Change in perspective
Notwithstanding the promises made by political parties, there is now a big shift in the way voters view them in an age when poll battles are, more often than not, fought online, says former State Finance Commission chairman B.A. Prakash. “Of course, if one takes a look at elections in the recent past, one can see the increasing interest in ‘cash distribution schemes.’ At the same time, in earlier elections what political party workers and the party machineries said tended to have a bigger influence. Online platforms and the constant chatter have introduced an unexpected change in the perspective of voters, especially the younger generation,” he said.
Prof. Prakash also questions the rationale and sustainability of populist measures, observing that successive reports of the Comptroller and Auditor General (CAG) point to Kerala’s persisting fiscal stress.
Political scientist G. Gopakumar says that social security could have a strong influence on voters in a scenario where the poll outcome is mired in uncertainties as the three fronts vie for supremacy. That said, the focus of political parties in this regard appears to be more on ‘winnability’ rather than the cost factor involved in these promises and declarations, he said.
Whoever forms the new government in Kerala, meeting the expenses linked to poll promises is likely to involve a tight-rope fiscal exercise. The 16th Finance Commission had increased Kerala’s share of the divisible tax pool from 1.92% to 2.382%. However, the commission had also decided to do away with revenue deficit (RD) grants to States, which had come as a blow.
Published – March 30, 2026 12:01 am IST
