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Kerala Raises Medical Care and Public Health Allocation to 2,500.31 Crores

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Published on Jan 29, 2026, 03:06 PM | 3 min read

Thiruvananthapuram: Kerala’s healthcare system, acclaimed globally for its excellence, continues to set new benchmarks in the 2026-27 state budget, presented by Finance Minister K N Balagopal in the Kerala Legislative Assembly. The state, which has moved from focusing solely on human health to a broader Planetary Health approach, has prioritised reducing medical expenses and strengthening traditional medicine systems like Ayurveda and Homeopathy alongside modern medicine.

The total allocation for the medical care and public health sector has been raised to 2,500.31 crores, an increase of 350.12 crores (16.28%) over the previous year.


Significant initiatives include the establishment of dialysis units in all taluk- level hospitals lacking such facilities, making Kerala the first state in India to ensure dialysis access up to the taluk level, with 14.20 crores earmarked for the project.


Cancer care receives a major boost, with 203 crores allocated for diagnosis and treatment. This includes 50 crores for Malabar Cancer Centre, 30 crores for Cochin Cancer Centre, 90 crores for RCC, 30 crores for medical college-based cancer treatment, and 3 crores for district/taluk hospitals. Additional allocations over last year include 15 crores each for MCC and RCC, 12 crores for CCRC, and 10 crores for medical colleges.


Pain and palliative care will receive 6.50 crores, supplementing funding from local self- governments, AYUSH departments, and the National Health Mission.


The Karunya Arogya Suraksha Padhathi (KASP) scheme, which provides free healthcare to 42.09 lakh poor families, including differently abled and transgender persons regardless of income, has been allocated 900 crores, up 200 crores from last year. Other key initiatives include:

  • 12 crores for a surgical robot at Thiruvananthapuram Medical College

  • 27.60 crores for the Kerala Digital Health Mission

  • 70.92 crores to sustain the second phase of the Aardram Mission via Family Health Centres and Janakeeya Health Centres

  • 22 crores for hospital waste management in medical colleges

  • 7 crores for Cath Lab and ICU expansion under DHS

  • 13 crores for healthcare development in tribal, coastal, and isolated areas

  • 259.93 crores for medical colleges under DME, including 57.09 crores for new colleges in Idukki, Konni, Wayanad, and Kasaragod

AYUSH research and development will be strengthened with 2.50 crores earmarked for the International Research Institute of Ayurveda, alongside 1.5 crores for the new Government Ayurveda College at Udumbanchola, Idukki.

Other allocations include 5 crores for Pain-Palliative-Elderly-Health Care Centres, 12 crores for communicable disease containment, 13 crores for non-communicable disease prevention, 9 crores for women and children hospitals, 38 crores for the ‘Kanivu’ scheme under the Kerala Emergency Medical Services Project, 6 crores for public health laboratories, and 3 crores for menopause clinics in district hospitals.


The National Health Mission will receive 465.20 crores as Kerala’s 40% state share, and 25 crores have been earmarked for PM-ABHIM activities. The Mritasanjeevani deceased donor multi-organ transplantation scheme will receive 2.50 crores.



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