Committed to creating ‘New Age Kerala’: CM Satheesan unveils roadmap in his maiden budget

Thiruvananthapuram: Kerala Chief Minister V.D. Satheesan presented his maiden state Budget on Friday, marking a significant milestone in his over two-and-a-half-decade-long legislative career.

Satheesan, who became a minister for the first time after assuming the Chief Minister’s office, also took charge of the Finance portfolio and presented the revised Budget for 2026-27 in the Assembly.

With this, Satheesan has joined the rare list of Chief Ministers who have presented a Budget while holding office.

Before him, only R. Sankar and Oommen Chandy had presented Budgets as Chief Ministers in Kerala.

Beginning his speech by quoting figures from the White Paper on Kerala’s financial position, Satheesan said the government, which came to power with a clear mandate, was committed to creating a ‘New Age Kerala’.

The Budget, he said, was based on the theme of ‘Good Governance and Compassion’, with equal emphasis on infrastructure development and welfare measures.

The Chief Minister warned that Kerala was facing severe financial challenges.

Kerala’s own revenue was lower compared to other states, while the government also had the responsibility of finding resources for KIIFB projects.

He said KIIFB had created financial imbalance and announced the formation of an expert committee to examine its functioning.

The government would face a major liability ahead, including the impact of the upcoming salary revision, he said.

Satheesan pointed out that the Centre’s share had been wrongly estimated in the previous Budget and the state would face a shortfall of Rs 20,500 crore.

The annual plan outlay, fixed at Rs 35,000 crore, would see a proportionate reduction, he added.

Despite the financial constraints, the government would continue welfare initiatives, Satheesan said.

He highlighted the implementation of free travel for women in KSRTC buses and the increase in honorarium for ASHA workers.

The government also indicated that its manifesto promise of increasing welfare pension from Rs 2,000 to Rs 3,000 would be implemented in phases.

Giving a major push to investments, the Budget announced assistance to set up 10,000 MSMEs, with an allocation of Rs 100 crore.

An ‘Invest Kerala Cell’ would be established to remove hurdles faced by investors, including delays related to land acquisition and approvals.

A Global Convention Centre would be set up near the Cochin International Airport.

An amount of Rs 200 crore was allocated for airport development, with a plan to integrate the growth of the state’s four airports.

The Budget also unveiled ‘Mission Samudra’, an ambitious project aimed at strengthening Kerala’s maritime economy by integrating the coastline, ports and waterways.

An allocation of Rs 400 crore has been made for the project, which seeks to connect road, sea and inland waterway networks.

Satheesan said the government aimed to transform Kerala into a ‘Port City’ and establish a shipbuilding centre at Vizhinjam.

The development of Kollam, Beypore and Azhikkal ports and the formulation of a Kerala Maritime Policy were also announced.

Rs 50 crore has been earmarked for a Maritime Museum.

The Budget also focused on retaining young talent within the state by creating opportunities for employment and skill utilisation.

He also announced a comprehensive health scheme named after Oommen Chandy where all families will be covered under a Rs 25 lakh health cover.

An international football stadium has also been announced. A Kerala School of Architecture and Planning and Design has also been unveiled.

The Kerala diaspora, which has been the spine of the state economy and from now on a mere remittance economy would not suffice, he said.

“Now we are seeking their support to turn our state into an investment economy,” he added.

Satheesan’s first Budget, presented at a time of fiscal stress, attempts to balance welfare commitments with investment-led growth and a new economic roadmap for Kerala.

–IANS