CM Satheesan’s ‘New Age Kerala’ Budget, investment push amid financial storm (Ld)

Thiruvananthapuram, June 19 (IANS) After more than two-and-a-half decades as a legislator, Kerala Chief Minister V.D. Satheesan presented his maiden Budget on Friday.

With the presentation of the revised State Budget for 2026-27, CM Satheesan also entered the rare list of Kerala Chief Ministers who have presented a Budget while in office, a distinction earlier held only by R. Sankar and Oommen Chandy.

Beginning his speech with figures from the White Paper on Kerala’s financial position, CM Satheesan admitted that the State was passing through a severe financial crisis but declared that the government was committed to building a ‘New Age Kerala’.

The Budget, he said, was based on the principles of good governance and compassion, balancing welfare commitments with investment-led growth.

The revised Budget comes after the government found a shortfall of Rs 20,500 crore in expected revenue due to incorrect projections in the earlier Budget.

The total liabilities of the State, including Kerala Infrastructure Investment Fund Board (KIIFB) and the Social Security Company, stand at Rs 87,012 crore, the Chief Minister said.

CM Satheesan launched a sharp critique of KIIFB, stating that it had contributed to financial imbalance and announced that an expert committee would examine its functioning.

The government also cautioned that the upcoming salary and pension revision and restoration of leave surrender benefits would add to the financial burden.

Despite the fiscal challenges, the Budget promised a major welfare and development push.

The government highlighted the implementation of Indira Guarantee schemes, including free travel for women in KSRTC buses and increased wages for scheme workers, including ASHA workers.

A major focus of the Budget was attracting investments and creating jobs.

The government announced the Kerala MSME Growth Scheme to support the launch of 10,000 MSME units across the State with assistance, revolving funds and expert mentoring.

An Invest Kerala Cell will function as a single-window mechanism to remove hurdles related to land, approvals and investor support.

The Budget gave a major push to Kerala’s maritime economy through ‘Mission Samudra’, an ambitious project to transform Kerala into a maritime hub by integrating ports, roads, railways and inland waterways.

The government announced plans to develop Kerala as a port city, establish a shipbuilding centre at Vizhinjam and strengthen ports including Kollam, Beypore and Azhikkal.

The aviation sector also received attention with plans to develop Kerala into a South Indian aviation and logistics hub by integrating the State’s four international airports.

A key announcement aimed at the younger generation was a dedicated startup initiative for Gen-Z entrepreneurs with an initial allocation of Rs 50 crore.

The scheme will provide financial assistance, interest-free loans, subsidies and technological support to young innovators.

Healthcare emerged as another major pillar of the Budget.

The government announced the Oommen Chandy Health Insurance Scheme, promising free treatment coverage of up to Rs 25 lakh for every family, with Rs 10 crore allocated for initial implementation.

A Kerala Health and Life Science City will also be developed with an allocation of Rs 100 crore to position the State as a medical and research destination.

The Budget proposed a Kerala Knowledge Valley to attract global universities, expand research facilities and strengthen higher education.

Advanced technology sectors including Artificial Intelligence, quantum computing and biotechnology will receive focus through a Future Readiness Think Tank.

The government also announced a Silver Economy programme for senior citizens, caregiver certification courses, tribal health clusters, coastal care units and measures to support rare disease treatment.

Agriculture, fisheries and rural sectors received significant attention, including an increase in rubber support price from Rs 200 to Rs 250 per kg, enhanced fisheries support, and additional allocations for SC/ST welfare.

The Budget also carried a cultural and tourism push, including declaring tourism as an industry, establishing a film city in Kochi, cultural centres and memorials for noted personalities.

CM Satheesan’s first Budget, presented amid a financial squeeze, seeks to combine fiscal correction with a long-term road map positioning Kerala as an investment destination while retaining its welfare identity.

–IANS

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