Kerala Chief Minister VD Satheesan
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Keralam Chief Minister VD Satheesan who also holds Finance portfolio, on Friday presented a revised Budget for 2026-27, projecting a cumulative deficit of ₹1,504 crore after accommodating additional expenditure of ₹1,080.95 crore, while avoiding major new resource mobilisation measures.The revised estimates mark an improvement over the interim Budget presented in January by predecessor KN Balagopal, which had projected a cumulative deficit of ₹1,773.46 crore amid mounting commitments on welfare pensions and salary revisions.Compounding challengesPresenting the maiden Budget of the new government, Satheesan said escalating geopolitical tensions in West Asia, the risk of lower NRI remittances and inflationary pressures from volatile crude oil prices had compounded the state’s financial challenges.Despite the difficult backdrop, the Budget lays out a vision for a “New Age Keralam,” combining economic growth with social justice and environmentally sustainable infrastructure development. The government plans to leverage technology to strengthen healthcare and education, generate employment, enhance elderly welfare and improve opportunities for marginalised communities.Mission SamudraA key feature of the Budget is ‘Mission Samudra’, an ambitious initiative aimed at transforming Keralam into a port-led economy and a global maritime hub. The project seeks to integrate the state’s 600-km coastline, two international seaports, a container transshipment terminal, 17 non-major ports and inland waterways into a unified development strategy.The budget envisions Keralam evolving into a single “Port City,” linking road, rail, sea and inland waterway networks with manufacturing clusters and greenfield urban centres. An allocation of ₹400 crore has been earmarked for projects under the initiative.EVs turn cheaperIt also proposes a Rare Earth and Critical Minerals Corridor and a Southern Keralam Economic Corridor covering Thiruvananthapuram, Kollam and Alappuzha districts. A sum of ₹150 crore has been allocated for the projects.In a push for green mobility, road tax on electric vehicles priced up to ₹10 lakh has been reduced from 5 per cent to 3 per cent, while EVs priced between ₹15 lakh and ₹20 lakh will attract 5 per cent tax instead of 8 per cent. However, the tax on EVs costing more than ₹40 lakh has been raised from 10 per cent to 15 per cent.Transport sectorTo promote sustainable construction, the existing concessional stamp duty of 4 per cent for eligible apartments will be extended to K-RERA-registered villas meeting prescribed environmental standards.The budget also offers relief to the transport sector. Stage carriage buses will receive a 50 per cent concession on quarterly tax, while taxes on all-India tourist permit buses have been reduced to encourage registrations in Keralam and improve inter-state connectivity. Published on June 19, 2026
