Kerala Budget 2026: UDF Unveils 5-Year ‘New Era Keralam’ Roadmap, Focuses On Jobs, Health And Infra

Published 19 June 2026 · india

Kerala Budget 2026: UDF Unveils 5-Year ‘New Era Keralam’ Roadmap, Focuses On Jobs, Health And Infra Published By Last Updated: June 19, 2026, 12:09 IST

Kerala Budget 2026: UDF Unveils 5-Year ‘New Era Keralam’ Roadmap, Focuses On Jobs, Health And Infra Published By Last Updated: June 19, 2026, 12:09 IST Kerala CM V.D. Satheesan presents UDFs first 2026-27 Budget, outlining a five-year New Era Kerala roadmap focused on health, education, jobs, senior welfare and infrastructure Kerala Chief Minister V. D. Satheesan presenting the revised Budget of the UDF government in the State Assembly in Thiruvananthapuram on Friday (June 19, 2026) Kerala Chief Minister VD Satheesan on Friday presented the first Budget of the UDF government for the financial year 2026-27, outlining a five-year roadmap to build a “New Era Keralam" through reforms in health and education, employment generation, social welfare and infrastructure development. Presenting the budget, Satheesan said it would serve as the roadmap for welfare schemes to be implemented in the state over the next five years. He said the UDF government came to power with a clear public mandate and that the budget reflects its vision of addressing challenges through reforms, technology and investments in social and physical infrastructure. The Chief Minister said the government aims to improve the health and education sectors by making maximum use of modern technology, creating more employment opportunities, ensuring the welfare of senior citizens and accelerating modern infrastructure development. He noted that despite Keralam’s achievements in social development, key sectors have been facing challenges. Public health, education and social sectors that have earned global recognition are under pressure, while social development indicators have remained stagnant for years. Youth unemployment, he said, continues to be a major concern. Highlighting measures already implemented despite financial constraints, Satheesan said the government had fulfilled key promises under the six Indira Guarantees, including free travel for women in KSRTC buses and the creation of a separate department for senior citizens.

Honorariums for ASHA workers, anganwadi workers, helpers and teachers have also been increased. He added that stronger investments in health and education would help position Keralam as a preferred destination. The Chief Minister also pointed to significant demographic changes in the state, including a declining share of young people and increasing migration abroad for employment. He stressed the need for a comprehensive study of these changes and said quality education and job opportunities must be created to make youth active partners in Keralam’s development. Emphasising the need to adapt to evolving social and economic realities, Satheesan said the government would focus on improving facilities for senior citizens while promoting a “silver economy" by utilising their capabilities. He added that Keralam’s financial constraints and structural challenges cannot be addressed through conventional methods alone and that the government is committed to attracting large-scale investments through innovative approaches, generating resources for the exchequer and ensuring equitable wealth distribution. As part of measures announced in the Budget, the government proposed a taxation framework for low-alcohol beverages. Low-alcohol beverages containing 0.5 per cent to 10 per cent alcohol by volume will attract a sales tax of 120 per cent, while beverages containing more than 10 per cent and up to 20 per cent alcohol by volume will be subject to a sales tax of 175 per cent. The move follows amendments made under the Abkari Policy 2022-23, which allowed the sale of low-alcohol beverages in the state. Under the amended Foreign Liquor Rules, alcoholic drinks containing between 0.5 per cent and 20 per cent alcohol by volume, excluding beer and wine, were classified as “Low Alcoholic Beverages". The government said the revised tax structure is aimed at providing clarity in taxation under the Kerala General Sales Tax Act.