Kerala Finance Minister K.N. Balagopal presented the Kerala Budget for the financial year 2025-26 in the State Assembly on Friday, February 7, 2025. The budget included announcements to address the state's immediate needs and long-term development goals. Metro rail projects in Kochi, Kozhikode and Thiruvananthapuram; high-speed rail corridors; new 'K-Homes' project to convert vacant sites into tourism facilities; and steps for the revival of Wayanad will be given special focus.

Rs 750 crore has been allocated for the rehabilitation of Wayanad flood victims. By allocating the allocated amount for the first phase of rehabilitation works, the government aims to complete the project in a time-bound manner.

Kerala has achieved financial stability with a 70% increase in tax collection in the last four years.

K-Homes project: The K-Homes project aims to use the vacant houses in the state for tourism. The project aims to provide affordable housing. The project will be implemented in a pilot phase within a 10-km radius of major tourist destinations such as Fort Kochi, Kumarakom, Kovalam and Munnar.

Metro projects: The Budget calls for special focus on metro rail projects in Kochi, Kozhikode and Thiruvananthapuram. The existing Kochi metro line will be extended to more areas, while the proposed metro projects in Kozhikode and Thiruvananthapuram will be realised soon. Thiruvananthapuram: The work on Thiruvananthapuram Metro Rail Project is progressing at a brisk pace.

Social welfare: The government has spent Rs 3,820 crore on scholarships for students belonging to minority communities and SC / STs. As the Centre has withdrawn scholarships for minority students of classes 1 to 8, the Kerala government has sanctioned Rs 200 crore for providing scholarships to them under the 'Marg Deepam' scheme. In addition, welfare pensions will reach Rs 50,000 crore.

Infrastructure development: It was announced in the budget that the construction of 150 bridges across the state will be completed soon.

Pending Payments: The last instalment of Rs.600 crore towards reform arrears of service pensions will be released this month. The salary revision will be released in two instalments within this financial year and will be merged in the Provident Fund (PF). Steps will be taken to disburse two installments of Dearness Allowance (DA) dues. The arrears of pension will be paid in two installments. The lock-in period for DA arrears has also been removed.

KIIFB: The Kerala Infrastructure Investment Fund Board (KIIFB) will allocate Rs 500 crore for large projects. Steps will be taken to incorporate a revenue-generating mechanism in KIIFB, which is under a huge debt burden by taking loans for various development projects of more than Rs 87,000 crore.

Kerala Budget: Other major announcements

• An IT Park will be set up in Kannur.
• An amount of Rs.700 crore has been allocated for Karunya Health Scheme in 2025-26.
• Under the LIFE scheme, at least one lakh houses will be completed by 2025-26. Rs 1,160 crore has been allocated for the LIFE project.
• Rs 200 crore has been allocated for the scheme.
• A new shipbuilding yard has been planned for southern Kerala.
• The Global Kerala Centre will be set up with a project of Rs 5 crore.
• high-speed rail. The announcement was made in connection with the Silver Line project, a semi-high speed rail corridor from Thiruvananthapuram to Kasaragod. The objective of this project is to reduce the travel time to less than four hours through the North-South Corridor of Kerala, which connects major cities.
• The state police and the public relations department will launch a joint project to tackle cyberbullying and fake news.
• 10 crore for research on cost-effective methods to manufacture bio-ethanol in the State.
• 100 crore to replace old and obsolete government vehicles.
• An additional Rs 50 crore has been allocated for a special package to tackle wild animal attacks in the state.