Thu Jan 29 12:39:05 UTC 2026: # Kerala’s Election-Bound Budget: Populist Measures and Infrastructure Investments Dominate

The Story:
Kerala’s Finance Minister K.N. Balagopal presented the Left Democratic Front (LDF) government’s final budget on January 29, 2026, ahead of upcoming elections. The budget is marked by populist measures, including free undergraduate education, an Assured Pension Scheme for government employees, and increased wages for various scheme workers. It also emphasizes infrastructure development, particularly in rare earth and defence industries, while lacking proposals for additional resource mobilization.

Key Points:

  • Free undergraduate education in government and aided Arts and Science colleges.
  • Assured Pension Scheme guaranteeing 50% of last basic pay for government employees, with option to shift from NPS.
  • 12th Pay Revision Commission to submit its report in three months.
  • Increased wages for ASHA workers, pre-primary teachers, Anganwadi workers, Saksharatha Preraks and helpers, and noon-meal workers.
  • Insurance schemes for school students, autorickshaw and taxi workers, and a health insurance initiative for families outside the Karunya Arogya Suraksha Scheme.
  • A ₹1,000-crore allocation for the employment guarantee scheme, opposing the Centre’s decision to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme.
  • Establishment of a Rare Earth Corridor and a Defence Technology Innovation Hub.
  • ₹100 crore allocated for the Regional Rapid Transit System (RRTS).
  • Revenue receipts of ₹1,82,972.10 crore and revenue expenditure of ₹2,17,558.76 crore projected for 2026-27.

Key Takeaways:

  • The budget is heavily focused on populist measures likely intended to sway voters in the upcoming elections.
  • The LDF government is positioning itself as a champion of social welfare and employment guarantee programs, directly challenging central government policies.
  • Infrastructure development, particularly in the rare earth and defence sectors, represents a strategic effort to boost the state’s economy and attract investment.
  • The lack of new resource mobilization strategies raises questions about the long-term financial sustainability of these initiatives.
  • The emphasis on “continuity in rule” suggests the LDF is attempting to highlight its track record and argue for continued governance.

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