Kerala Chief Minister VD Satheeshan (file photo) | Photo Credit: SHIV KUMAR PUSHPAKAR

Kerala Chief Minister V D Satheesan, who also holds the Finance portfolio, on Friday presented the revised Budget for 2026 27 in the Assembly, pledging to build a "New Kerala" with inclusive growth and sustainable infrastructure development.

Citing severe fiscal stress, hidden liabilities, lower remittances and inflation as key challenges before the government, the CM unveiled Mission Samudra to build a port-led economy, elevate the state as a global maritime and economic hub.

The government is committed to stimulating the economy through broad-based development strategies, attracting large-scale investments across various sectors, mobilising financial resources for the public exchequer, and ensuring the equitable distribution of wealth, the CM said.

"To achieve these objectives, the government has outlined flagship initiatives," he said.

By integrating Kerala's 600-kilometre coastline, two international ports, one container transshipment terminal, 17 non-major ports, and numerous other water-based resources, the government aims to establish Kerala as a major presence on the global maritime map within the next five years.

The vision is to transform Kerala into a port-led economy by developing a maritime ecosystem that connects roads, seaports, railways, inland waterways, industrial zones, and greenfield cities, he said.

The CM said that ₹400 crore will be allocated to the Mission Samudra project.

Satheesan said that the government was committed to stimulating the economy through broad-based development strategies and announced ₹200 crore for turning the state into an aviation and logistic hub centered around its four airports.

Besides that, the government will also launch a Data-based Invest Kerala cell to attract investment by addressing key business bottlenecks, the CM said in his Budget speech.

Fulfilling one of its key Indira Guarantee promises, the government allocated ₹ 10 crore in the Budget for the Oommen Chandy Health Insurance Scheme, which provides health insurance coverage of ₹25 lakh to every family in the state.

The Budget also allocated ₹600 crore for free travel for women and transgender persons on KSRTC buses under another Indira Guarantee initiative, the first phase of which was rolled out recently.

It also allocated ₹10 crore as part of developing a silver economy for the welfare of the elderly population of the state, ₹20 crore for the preliminary work to set up light metros in Thiruvananthapuram and Kozhikode, ₹50 crore for setting up a football stadium of international standards in the Malabar region and increased the minimum support price for rubber from ₹200 to ₹250.

Satheesan also said that the project plan fund has been revised to ₹30,300 crore from the earlier ₹35,000 crore announced by the LDF administration and announced an increase in the financial packages for the SC/ST and backward classes.

Published on June 19, 2026