In an election‑year budget presented on 29 January 2026, Kerala’s Finance Minister K. N. Balagopal announced that undergraduate Arts and Science degrees in government and aided colleges will be completely free – a first in India – alongside expanded welfare measures and enhanced funding for education, healthcare and social security.

In a move that educationists and students are calling a watershed moment, the Kerala State Budget 2026‑27 has pushed the boundaries of public education policy by making undergraduate Arts and Science tuition completely free in all government and aided colleges across the state.

This initiative extends the state’s longstanding commitment to free education, previously limited to Class 12, thereby eliminating tuition fees for an estimated 3.5 lakh students pursuing degrees in Arts and Science disciplines.

Finance Minister K. N. Balagopal, presenting the budget in the Legislative Assembly, stressed that this policy aims to reduce financial barriers and broaden access to higher education, especially for marginalised communities and economically weaker families – a cornerstone of Kerala’s welfare‑driven governance approach.

Alongside free undergraduate tuition, the budget outlines significant allocations for universities and higher education infrastructure: ₹851.46 crore to implement recommendations of the Higher Education Council and new four‑year degree programmes, and ₹259.09 crore earmarked for the effective functioning of universities under the Higher Education Department.

Higher Education Minister Dr R. Bindu described the budget as “student‑centric”, highlighting additional measures such as increased research scholarships, the launch of common hostels in Ernakulam, Thrissur and Kozhikode to address accommodation challenges, and expanded stipends – including monthly assistance of ₹15,000 for full‑time PhD scholars without other fellowships.

Broader Welfare Push: Social Security and Infrastructure

The education measures are part of a larger welfare‑oriented budget – with a total of ₹14,500 crore allocated to social security pensions and related programmes – underscoring the state government’s commitment to strengthening social support as Kerala heads into Assembly elections later this year.

Among the budget’s notable social measures are pay increases for frontline workers: Accredited Social Health Activists (ASHA) and Anganwadi workers will receive an additional ₹1,000 per month; Anganwadi helpers an extra ₹500; pre‑primary teachers and literacy mission motivators also see a ₹1,000 monthly rise; and mid‑day meal cooking staff receive a ₹25 daily wage increase.

The budget introduces accident and health insurance schemes that cover school children from Classes 1 to 12 and extends upgraded coverage under “Medisep 2.0” for government employees, pensioners, cooperative employees and vulnerable families.₹15 crore has been allocated annually for the student insurance programme.

Beyond social security, Kerala is investing in infrastructure and employment schemes. Funding includes allocations for the Regional Rapid Transit System (RRTS), coastal and environmental conservation projects, and the expansion of the state’s “Work Near Home” project to 200 centres to promote youth employment, skill training and utilisation of unused institutional infrastructure.

A new “Global School” initiative – with ₹10 crore seed funding – aims to deliver modern technology, vocational and future‑ready education focusing on techno‑economics and next‑generation skills, partly to stem the long‑standing trend of students leaving the state (or country) for higher education and specialised training.

Political Context and Criticisms

The election‑year timing of the budget has sparked a politically charged response. Opposition parties and critics have labelled the document a “political” budget, suggesting its generous welfare measures, particularly the free undergraduate education announcement, are designed to sway voter sentiment rather than based on a robust fiscal strategy.

Some education sector analysts have welcomed the expanded funding but cautioned that free tuition alone is not enough. Questions have been raised regarding the demand for Arts and Science courses, given that some aided colleges have struggled with declining enrolment, and concerns about quality, relevance and future employment outcomes remain prevalent.

There are also calls for more strategic planning around improving teaching quality, addressing faculty shortages, and expanding opportunities in STEM and vocational subjects 0 elements that are critical to ensuring that expanded access translates into real advantages for graduates in the job market.

Historical and Policy Context

Kerala’s bold approach builds on a long history of public investment in education and social welfare. The state has consistently performed well in national education rankings and boasts high literacy rates, with its public education system often cited as a model for inclusion.

Nevertheless, the extension of free education to the undergraduate level marks a first of its kind in India and signals a significant shift in state‑level policy towards universal higher education access.

Previously, free education in Kerala was largely confined to primary, secondary and higher‑secondary schooling, with students facing tuition and other expenses at the college level. The new policy closes that gap and reinforces the state’s welfare ethos.

The Logical Indian’s Perspective

The Logical Indian recognises the intent behind Kerala’s bold expansion of free education as a profound step towards equity, social justice, and inclusive development.

Education is a powerful leveller, and removing financial barriers to undergraduate access can open doors to opportunity, dignity and societal participation for thousands of young people and families.

That said, access must be matched with quality. Free tuition should be complemented by well‑resourced institutions, capable teachers, relevant curricula and effective support structures that ensure all students, regardless of background, can thrive academically and professionally.

Moreover, expanding pathways in vocational, technical and emerging fields will be essential to meet evolving labour market needs.