For the welfare of the government, state Finance Minister K N Balagopal on Thursday unveiled a people-focused budget for 2026-27 and announced the 12th Pay Revision Commission, continuing the long-standing policy of reviewing government employees' salaries every five years.
12th Pay Revision Commission to submit report within 3 months
The 12th Pay Revision Commission is expected to submit its report within three months for timely action. The budget also confirmed that all pending Dearness Allowance (DA) and Dearness Relief (DR) arrears for employees and pensioners will be cleared.
One installment will be paid with the February salary, and the remaining dues with March pay. The House Building Advance for employees will be reinstated, providing support for staff housing needs.
On pensions, the finance minister formally announced the Assured Pension Scheme, replacing the contributory National Pension System (NPS) for eligible employees. Under the scheme, retirees will receive up to 50 per cent of their last drawn salary, with DR included.
Employees can choose to switch to assured pension plan
Employees currently under NPS can choose to switch to the assured pension plan. A system will be set up to manage government contributions, and detailed guidelines will be issued by April 1. "The budget aims to ensure fair pay and financial security for government employees while continuing Kerala's growth trajectory," Balagopal said.
Presenting the second Pinarayi Vijayan-led government's sixth budget in the Legislative Assembly, Balagopal announced that the honorarium of Accredited Social Health Activists (ASHA) and Anganwadi workers has been hiked by Rs 1,000 per month and that of Anganwadi helpers by Rs 500.
Pay of pre-primary teachers increased by Rs 1,000 per month
The pay of pre-primary teachers and literacy mission motivators has been increased by Rs 1,000 per month and the daily wages of school cooking staff have been raised by Rs 25 per day, he said. The budget also announced Rs 3,700 crore for the Chief Minister's Stree Suraksha Scheme.
Besides that, an increase in allocation for the rural employment scheme by Rs 1,000 crore as compared to previous years, life and health insurance schemes for all categories of people, including school children, and free degree education for students in arts and science colleges were also announced in the budget.
Rs 100 crore allocated for RRTS
The budget also announced an allocation of Rs 100 crore for the initial works in connection with the Regional Rapid Transit System (RRTS) from Thiruvananthapuram to Kasaragod that was given in-principle approval by the state cabinet on Wednesday. It also announced around Rs 150 crore for the development of the coastal region. The budget also announced over Rs 250 crore for forest and wildlife protection.
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Kerala Budget: State hikes pay of pre-primary teachers by Rs 1,000; honorariums of ASHAs hiked
