THIRUVANANTHAPURAM: Finance Minister KN Balagopal is set to present the Kerala State Budget for the 2026-27 financial year on January 29. This marks the final full budget of the second Pinarayi Vijayan government, and all signs point toward a massive “election-special” presentation aimed at winning over the electorate.
With the state assembly elections looming, Chief Minister Pinarayi Vijayan has reportedly directed the Finance Department to shift away from the austerity and tax hikes that defined previous years. Instead, the focus is now on populist schemes and major fund allocations across all sectors.
From ‘Tax Hikes’ to ‘Public Outreach’
This will be Minister Balagopal’s sixth budget presentation. His previous five budgets (from the 2021-22 revised budget to 2025-26) were frequently criticized by the public and the opposition for heavy taxation and “anti-people” fiscal policies. However, with the government’s term nearing its end, the strategy is expected to change drastically.
Focus Areas: VIP Constituencies and Welfare
Political insiders suggest that the budget will feature:
- Mega Projects for Dharmadam: Significant announcements are expected for the Chief Minister’s home constituency.
- Kottarakkara Development: The Finance Minister is also likely to shower his own constituency with major projects.
- Welfare Spending: Increased allocations for social security pensions and rural development to mitigate anti-incumbency.
While the current government is making the promises, the fiscal responsibility of implementing these high-cost projects will fall on the administration that takes charge after the upcoming elections.
