Kerala Budget 2026-27: State Budget gives major boost to Malabar’s development

The State Budget presented by Finance Minister K.N. Balagopal on Thursday gave a major fillip to Malabar’s development.

Banking on a mix of infrastructure, tourism, connectivity and sports initiatives, it highlighted the under-construction Wayanad tunnel road (Anakkampoyil-Kalladi-Meppadi), Wayanad Development Package, Beypore Uru tourism project, proposed Regional Rapid Transit System (RRTS) phases connecting Thrissur-Kozhikode-Kannur-Kasaragod with Central support, establishment of a new Kerala Administrative Tribunal (KAT) bench at Thalassery, and an integrated international sports hub in Kannur.

Mr. Balagopal said the construction of the Wayanad tunnel road had commenced. “Transformative changes will be witnessed in Wayanad upon the completion of the 8.73-km-long Anakkampoyil-Kalladi-Meppadi tunnel road. The estimated cost of tunnel road is ₹2,134.50 crore,” he said. The Budget has earmarked an amount of ₹80 crore for the Wayanad Development Package.

The second phase of the RRTS would see it extended from Thrissur to Kozhikode, third phase from Kozhikode to Kannur, and fourth phase from Kannur to Kasaragod. The project, if materialised, would act as a catalyst for the region’s development. The Centre for Water Resources Development and Management (CWRDM), an important research and development institution in the water resource sector, has received an allocation of ₹13 crore for various activities in the State Budget. A sum of ₹12.10 crore has been earmarked for various activities of Cyberpark Kozhikode.

In the tourism sector, ₹5 crore has been set apart for the Beypore Uru project. As part of implementing a new scheme for developing tourism circuits, the Budget proposes to establish an integrated ‘blue green integrated tourism circuit’ at Dharmadom in Kannur. An amount of ₹2 crore has been allocated for preliminary activities.

The Budget allocated ₹28.01 lakh for setting up an additional bench of the KAT. The integrated international sports hub includes a FIFA- standard football stadium and an FIH standard hockey arena, among other facilities. An amount of ₹10 crore has been earmarked for preliminary activities of the project.

In a boost to cultural and heritage sectors, the Budget set aside ₹3 crore for establishing a historical research centre at Ponnani in the name of Islamic scholar and social reformer Sheikh Zainuddin Makhdoom II. A sum of ₹1.50 crore has been earmarked for implementing the first phase of M.T. Memorial Cultural Centre at Thunchan Parambu and ₹1 crore for South Zone Cultural Centre at Pinarayi. The Budget further proposes to establish a Kerala Kala Kendra in Kozhikode.

The allocation for the Kasaragod package has been increased by ₹5 crore, taking the total allocation to ₹80 crore. For continuing activities of the Cauvery River basin projects, the Budget sanctioned ₹28.75 crore, including an RIDF share of ₹27 crore. An amount of ₹21.75 crore has been earmarked for the Banasura Sagar project, including an RIDF share of ₹20 crore.