Kerala Finance Minister K. N. Balagopal at his residence before leaving for the Budget presentation in Thiruvananthapuram on Thursday (January 29, 2026)
| Photo Credit: Nirmal Harindran
Kerala Finance Minister K.N. Balagopal will present the 2026-27 State Budget today (Thursday, January 29, 2026) in the Legislative Assembly.
The Budget, the final one of the current CPI(M)-led Left Democratic Front (LDF) government, is being keenly watched for surprise announcements with Kerala expecting Assembly polls in a few months’ time.
In a surprising move, the Pinarayi Vijayan government had made two big-ticket announcements on the eve of the Budget. The State Cabinet, which met on Wednesday, had given in-principle approval for a 583-km Regional Rapid Transit System (RRTS) project from Thiruvananthapuram to Kasaragod, and for taking over the loan liabilities of the families hit by the July 30, 2024, landslides in Wayanad district. The announcement regarding the RRTS has come just days after former Konkan Railway chairman E. Sreedharan sparked a heated debate by declaring that a high-speed rail line that would serve as an alternative to the Kerala government’s SilverLine (K-Rail) project was under the active consideration of the Union government.
It is to be seen how the Budget will address some major pending issues including the LDF manifesto promise of hiking the social security pensions ₹2,500, an assured pension scheme for government employees, and the pay revision demand by government employees. While welfare and development measures are expected, no major tax proposals are likely to be included.
Ahead of his sixth Budget presentation, Mr. Balagopal had stated that Kerala can expect a “realistic and practical” Budget which would reflect the LDF’s conviction that it would continue in power in the State.
In October 2025, Mr. Vijayan had made a slew of announcements which included hiking the social security and welfare fund board pensions from ₹1600 to ₹2000 and unveiling the ‘Connect to Work Scholarship’ and the Sthree Suraksha Pension.
The Economic Review 2025 tabled in the State Legislative Assembly on Wednesday had noted that Kerala had posted strong growth in 2024-25 with the Gross State Domestic Product (GSDP) clocking 6.19% growth in real terms. At the same time, it had also underlined the need for “resilient, innovative and forward-looking financial strategies” to tackle prevailing fiscal challenges.
The Kerala Budget is also being tabled ahead of the Union Budget and the announcements regarding the recommendations of the 16th Finance Commission.
Published – January 29, 2026 08:14 am IST
