Finance Minister K N Balagopal Presents Kerala Budget in Assembly

THIRUVANANTHAPURAM: Kerala Finance Minister K N Balagopal presented the State Budget in the Assembly on Thursday, announcing major allocations for welfare pensions, women’s security, employment generation schemes, education, infrastructure development, the social sector, and the IT sector.

The government also declared free education up to the graduate level in the state, making degree education in Arts and Science colleges free for students. Currently, free education in the state is available only up to the plus-two level.

Welfare pensions hiked

While presenting the final budget of the second term of Pinarayi Vijayan's government ahead of crucial assembly elections, the finance minister announced an allocation of Rs 14,500 crore for welfare pensions. The welfare and social security pensions have been increased to Rs 2,000 per month.

Monthly wages of Anganwadi workers have gone up by Rs 1,000, Anganwadi helpers by Rs 500, ASHA workers by Rs 1,000, pre-primary teachers by Rs 1,000, and the journalist pension has been raised by Rs 1,500.

Pay revision, DA/DR dues

The finance minister announced the 12th Pay Revision Commission, with the report to be submitted within three months. In a major move, all pending DA and DR arrears for employees and pensioners will be fully paid — one DA installment with the February salary and the remaining DA/DR installments with the March salary.

Assured pension

On pension reforms, the assured pension scheme will replace the contributory pension scheme from April 1. The assured pension will be capped at 50 percent of basic pay, with dearness relief allowed under the scheme. Employees will also have the option to switch from NPS to the assured pension.

Elderly friendly budget

The budget focuses on caring for people of all ages, from children to the elderly. It includes free treatment for the first five days for anyone involved in road accidents, available at government hospitals and select private hospitals, with Rs 15 crore set aside for the scheme.

Employment Guarantee Scheme

Additionally, Rs 1000 crore has been allocated for the employment guarantee scheme. Despite concerns that changes by the Centre could impact the program, Kerala plans to run it smoothly and provide extra funds if needed.

Medical insurance scheme

A new medical insurance scheme will soon be introduced for retired government employees and those from cooperative institutions, offering coverage based on the Medisep model to public sector and cooperative sector staff.

Rs 15 cr accident cover for school students

The budget rolled out Rs 15 crore accident insurance cover for students from classes 1 to 12, along with free treatment benefits.

Nativity Cards

Addressing concerns among religious minorities over SIR, Balagopal announced that the state plans to issue nativity cards to ease fears, with new legislation to make it official.

Cautions against designs of communal forces

The minister announced that ₹10 crores have been allocated in the budget to promote communal harmony, noting that some forces are attempting to create divisions in society and urging everyone to protect communal unity.

There are highly venomous communal snakes lurking to undermine the unity of Kerala. They are actively using new strategies to divide, polarize, and subjugate the people. The latest approach promoted by so-called "election experts" is to stigmatize those who stand up for public unity against communalism. We reject these stigmatizations with contempt, and let me remind you—it’s not easy to play with fire.

Centre reducing Kerala's rightful share

The finance minister added that despite neglect and step-motherly treatment from the Central government, the state has made positive progress over the past four years. He accused the Centre of reducing Kerala’s rightful share to pressure it financially and called for a united stand against such anti-democratic actions.