Union Budget 2026: Kerala Pins Hopes on Projects and Packages

New Delhi: Union Finance Minister Nirmala Sitharaman will present the third budget of the third Narendra Modi government in the Lok Sabha on Sunday at 11 am. This is the first time the budget is being presented on a public holiday, as until last year, it had been presented on a Saturday 18 times.

While the budget is unlikely to introduce major policy changes, there may be announcements aimed at states going to assembly elections. Kerala, Tamil Nadu, and West Bengal, opposition- ruled states, are approaching elections as the budget is presented. This is Nirmala Sitharaman’s ninth consecutive budget. Only Morarji Desai, who presented ten budgets, is ahead of her. P Chidambaram presented nine budgets, and Pranab Mukherjee eight.

“The 16th Finance Commission report has been submitted to the central government. When the report is presented in Parliament on February 1, it is expected that Kerala’s share will increase from the current level,” said Finance Minister K N Balagopal to the media after presenting the state budget, referring to the expectations from the Union budget to be presented by Finance Minister Nirmala Sitharaman on Sunday.

However, past experiences have often been disappointing. None of the packages submitted in the aftermath of the Mundakkai disaster were considered, and the very name of Kerala was not even mentioned in the budget. Support was expected for Wayanad and Vizhinjam. There are numerous other long-standing expectations, including the Silverline semi-high-speed rail project, the Nilambur–Nanjangud, Thalassery–Mysore, and Kanhangad–Kannipayyur railway lines, the long-pending AIIMS project, assistance for the rubber and traditional sectors, and increasing procurement prices for paddy.

These expectations remain high this time as well. Ahead of the budget, a memorandum outlining Kerala’s demands was submitted during a meeting with the Union Minister. Despite the central government having denied 5,649 crore rupees in the last quarter of the current financial year, causing considerable difficulty, the state is closely watching the budget.

Proposals put forward include a special financial package of 21,000 crore rupees, 1,000 crore rupees in assistance to reduce human–wildlife conflict and prevent crop loss, a protection package for traditional industries, wage increases for scheme workers, welfare pensions, the school mid-day meal programme, and an increase in the central share for housing schemes. Other expectations include elderly care schemes, increasing the central share for centrally sponsored schemes to 75 percent, 2,000 crore rupees for paddy procurement, a 1,000 crore rupee rubber price stabilisation fund, support for tea, coffee, and spice farmers, measures for value addition, branding initiatives, and practical implementation of organic farming methods.