Kerala Budget 2026–27: Pay Hike for ASHA, Anganwadi Workers; ₹100 Crore for Statewide RRTS

Kerala Finance Minister KN Balagopal presented the state budget for 2026–27 in the Legislative Assembly on Thursday. The budget places a strong focus on welfare spending ahead of the upcoming assembly elections.

Calling Kerala’s growth a “new normal,” the minister highlighted continued development despite reduced tax revenues from the Centre.

Pay Hike for ASHA and Anganwadi Workers

One of the key announcements in the budget is a hike in monthly honorariums for frontline workers:

• ASHA workers: ₹1,000 monthly increase
• Anganwadi workers: ₹1,000 monthly increase
• Anganwadi helpers: ₹500 monthly increase

The move aims to support grassroots workers who play a vital role in healthcare and child welfare.

Boost for Education and School Staff

The education sector also received attention in the budget:

• Pre-primary teachers and literacy mission motivators will get a ₹1,000 monthly hike
• Daily wages of school cooking staff increased by ₹25
• Free degree education announced for Arts and Science students

Major Push for Infrastructure and Transport

The state government announced a shift in its rail transport strategy. A sum of ₹100 crore has been allocated for initial work on the Regional Rapid Transit System (RRTS).

The proposed 583-km Thiruvananthapuram–Kasargod high-speed corridor will be developed in 4 phases and is expected to replace the stalled SilverLine project.

Strong Focus on Women’s Safety and Welfare

Women’s safety remains a priority in the budget:

• ₹3,700 crore allocated for the Chief Minister’s Stree Suraksha Scheme
• ₹3,820 crore set aside for women’s welfare pensions

Other Key Budget Allocations

• Social security pensions: ₹14,500 crore
• Health sector: ₹2,500 crore
• Rural employment: Budget increased by ₹1,000 crore
• Forest and wildlife protection: ₹250 crore

Read More: Budget 2026: How Does India Digitally Lock the Union Budget Until 11 AM?!

FM’s Message on Development

Balagopal said the government is committed to improving living standards across Kerala. He added that development over the past decade has benefited common citizens, senior citizens, students, workers, and vulnerable sections of society.

Conclusion

The Kerala Budget 2026–27 places welfare at the centre, with higher pay for frontline workers, major spending on social security, and fresh investment in transport infrastructure. The budget signals the state government’s focus on inclusive growth and long-term development despite financial constraints.

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