Kerala's Finance Minister, KN Balagopal, has announced free education up to the graduate level in science and arts, a strategic move ahead of the crucial assembly elections three months away.
The declaration was made during the presentation of the state's annual budget for the forthcoming fiscal year, marking a substantial expansion of Kerala's education policy.
The students will now receive tuition-free education, an improvement from the previous policy that offered free education only up to Class 12.
The minister said the initiative aims to reduce financial burdens on families and increase access to higher education.
The budget includes a Rs 1,000 monthly salary increase for pre-primary teachers and literacy mission motivators, acknowledging their essential role in early education. Additionally, daily wages for school cooking staff will rise by Rs 25 to improve their livelihoods.
The budget allocates Rs 37 billion for the chief minister's women safety scheme, enhancing safety measures and support services for women.
Additionally, the rural employment scheme sees an increase of Rs 10 billion.
Life and health insurance schemes will be introduced for all demographics, particularly benefiting schoolchildren.
Additionally, Rs 1 billion has been allocated for the initial phases of the Regional Rapid Transit System (RRTS), aimed at connecting the state capital to Kasaragod and enhancing transportation infrastructure.
Approximately Rs 1.5 billion will be allocated for coastal development, and over Rs 25 billion for forest and wildlife conservation, highlighting the state's commitment to environmental sustainability.
However, the ruling Left Democratic Front (LDF) faces strong criticism from opposition parties in Kerala, who have labelled the budget as a "political document” rather than a credible financial plan.
They accuse the government of "false promises" and of failing to fulfil commitments over the past decade.
Opposition Leader VD Satheesan raised concerns about repeated unfulfilled reform promises and emphasised that mixing politics with fiscal planning undermines budget integrity and erodes public trust through pre-election announcements.
Further criticisms from the opposition include insufficient state-market interventions, overly optimistic revenue projections, and rising state debt levels.
They have called for a performance audit and a white paper on Kerala's financial health, citing broken promises and a decline in economic credibility.
In defence of the budget, Chief Minister Pinarayi Vijayan termed it "popular,” emphasising its commitment to comprehensive development and citizen welfare.
He outlined the LDF government's vision of transforming Kerala into a modern, developed middle-income society through effective budget implementation.
During his budget speech, Balagopal did not shy from criticising the central federal government, claiming it is "strangling" Kerala by reducing the state's tax revenues.
He stated, "Despite severe neglect, Kerala has progressed," highlighting the state's resilient economy.
At a post-budget press conference, Balagopal stated that the proposed educational reforms will affect both government and government-aided colleges, although the financial implications for state revenue remain to be determined.
The budget addresses the issue of students seeking higher education and skill training outside the state or abroad, with an estimated annual outflow of Rs 80 billion.
The budget proposes establishing a ‘Global School’ in Kerala, focusing on modern technologies and skill development, and allocating Rs 100 million for initial activities.
It aims to strengthen partnerships between higher education institutions and local self-governments, with Rs 100 million allocated to each district planning committee to enhance technical expertise.
To address accommodation issues, a public hostel scheme for government college students will begin in Ernakulam, Thrissur, and Kozhikode, with an initial allocation of Rs 100 million.
The budget also enhances support for full-time PhD scholars at universities, providing monthly stipends of Rs 15,000 and setting aside Rs 387.6 million for scholarships, including the Chief Minister’s Student Excellence Award and the Kerala Research Fellowship.
Overall, Rs 8.515 billion has been earmarked for higher education enhancements, representing an 8.67% increase from the previous year.
The higher education department receives Rs 2.59 billion, while the technical education department receives Rs 2.95 billion, along with additional funds for initiatives and infrastructure in government colleges.
Chief Minister Vijayan addressed criticisms of unfulfilled promises, emphasising that the new budget would focus on development and welfare.
It includes salary increases for ASHA and Anganwadi workers, full payment of DA and DR for government employees, and the replacement of the Contributory Pension Scheme with the Assured Pension Scheme, effective April 1. A special statement in July 2024 will ensure full payment of welfare pension arrears.
Overall, the budget benefits various sectors, including workers, farmers, and the business community, and asserts Kerala's political stance against central government challenges to federalism and constitutional rights. It addresses distress from unjust borrowing restrictions and financial constraints imposed by the central government.