The state government is expected to incur an additional financial burden of about ₹10,000 crore due to the welfare measures announced on Wednesday ahead of the 2025 local body elections and the 2026 assembly polls.
Chief Minister Pinarayi Vijayan’s announcement on Wednesday included an increase in Social Security Board/Social Fund pensions to ₹2,000 per month and a new monthly ‘Three Suraksha’ pension of ₹1,000.
Finance Minister KN Balagopal, speaking to reporters here after a cabinet meeting where the decisions were finalised, pegged the total expenditure at “not less than ₹10,000 crore”, adding that the Left Democratic Front government was quite confident that the cost could be met despite the squeeze caused by the hostile central fiscal policy.
The decision alone to increase the welfare and welfare fund pensions by ₹400 crore, from ₹1,600 per month to ₹2,000, would require Kerala to pay an additional ₹3,000 crore annually. At present, the state spends nearly ₹ 10,000 crore annually on these pensions.
The LDF manifesto for the 2021 assembly elections announced that social security pensions would be increased to ₹2,500 per month per beneficiary. She also promised a pension plan for households, but did not specify the amount. On Wednesday, the Chief Minister announced a monthly pension of ₹1,000 for women who hold Antyodaya Anna Yojana or Priority Households cards and are not eligible for any other pension. For this scheme, the additional burden on the government is ₹3,800 crore.
Mr. Balagopal reiterated that payments of ₹10,000 crore were pending from the Center to various sectors in the state under various components.
Among other announcements, the government would incur an additional burden of ₹5.5 million per annum in connection with the increase of ₹1,000 in the monthly honorarium of Literacy Preraks and ₹5.72 million to increase the monthly salaries of pre-primary teachers and ayahs by ₹1,000. The hike in the daily wages of midday meal cooks will require the government to disburse an additional ₹16 crore.
The pending third and fourth installments of the 11th Civil Servants Review Commission payments will be merged with the Provident Fund after April 1, 2026. Those who do not have PF will be issued the amount in cash after that date.
Published – 29 Oct 2025 20:32 IST
