Kerala’s expectations from the Union Budget 2026-27 include a ‘Special Fiscal Correction Package’ to make up for “a severe resource gap of over ₹21,000 crore arising from the current year’s borrowing constraints,” the establishment of a defence research and development corridor linking Vizhinjam, Chavara and Kochi, and a ₹1000-crore Central assistance for developing a dedicated strategic rare earth corridor project to tap the State’s coastal mineral sand reserves.
The State’s wish-list, presented by State Finance Minister K.N. Balagopal at a pre-Budget meet convened by Union Finance Minister Nirmala Sitharaman in New Delhi on Saturday, also includes a roll-back of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme and restoration of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) framework.
Kerala’s long-standing demands for an All India Institute of Medical Sciences (AIIMS), the Sabari Rail project linking Angamaly and Erumely figure in the latest wish-list, alongside demands for “State-specific rescue packages” for traditional small-scale industries and a ₹1,000-crore allocation for mitigating human-wildlife conflict.
Mr. Balagopal said these proposals “are framed not as state-specific concessions but as contributions to national progress, with Kerala offering itself as a demonstrative site for scalable models.”
