New Delhi: Presenting the Kerala Budget 2026 in the State Assembly on Thursday, Finance Minister K N Balagopal announced free education up to the graduate level, becoming the first state in the country to take such a step. As per the Kerala Budget 2026, undergraduate degree programmes in arts and science colleges will now be free for students studying in government and government-aided institutions. Until now, the free education policy in the state was only up to Class 12.

According to the Budget announcement, the new reform will apply to undergraduate programmes in Arts and Science colleges under the government and aided sectors. In addition to free degree education, school students across Kerala will now be covered under an accident and life insurance scheme.

State to establish ‘global school’

The Budget also addressed the rise in the number of students leaving Kerala or moving abroad for higher education and skill training. As per government estimatation this results in an annual financial outflow of nearly Rs 8,000 crore. To counter this, the state has proposed to establish a ‘Global School’ in Kerala which will focus on modern technologies, vocational education, techno-economics and future-oriented skills. An initial allocation of Rs 10 crore has been made as the State’s contribution to begin the project.

Boost for higher education, hostels and research

Several measures were announced to strengthen higher education infrastructure and research. The government proposed closer cooperation between universities, research institutions and local self-government bodies with Rs 10 crore per year allocated to each District Planning Committee to improve technical support for development projects. To address accommodation issues, a public hostel scheme for students of government colleges will be launched which will start in Ernakulam, Thrissur and Kozhikode. Rs 10 crore has been set aside for preliminary work.

Student support schemes have also received a boost with full-time PhD scholars without other fellowships receiving Rs 15,000 per month, and Rs 38.76 crore has been allocated for scholarships and fellowships. The budget earmarked Rs 851.46 crore for higher education reforms, Rs 259.09 crore for university activities and Rs 295 crore for technical education.