The revised Kerala Budget 2026-27 prioritises the healthcare sector by reducing out-of-pocket expenditure, improving medical infrastructure and positioning the state as a 'health tourism' destination, Chief Minister V D Satheesan said on Friday.
In his Budget speech in the state assembly, Satheesan said that the government intends to revitalise the health sector by "aggressively ramping up investments" in it, and one of the steps in that direction was the 'Reach Kerala' scheme to transform the state into a destination for health tourism.
"As part of this initiative, steps will be taken to coordinate the activities of the Health, AYUSH, Tourism and other related departments to provide high-quality healthcare services," he said.
He announced an allocation of Rs 2,076.02 crore for medical care and public health, and said the government will take steps to reduce people's out-of-pocket expenditure on healthcare.
One of the steps outlined in the Budget to reduce treatment costs was to provide financial assistance for annual health check-ups for individuals aged 40 years and above, to detect and prevent diseases at an early stage.
Another is the 'Indira Guarantee' promise of providing health insurance coverage of Rs 25 lakh to every family in the state—to be implemented as the Oommen Chandy Health Insurance Scheme—for which Rs 10 crore has been allocated in the Budget.
The CM said that the condition of medical colleges at Kasaragod, Idukki, Wayanad and Manjeri continues to be poor, and steps will be taken to improve infrastructure, staffing and equipment at these institutions.
"The second medical college in Thiruvananthapuram will be made operational, and a new medical college will be established at Haripad. An allocation of Rs 100 crore is made for these purposes," he said.
Besides that, selected medical colleges will be granted autonomous status, and the government will support them to attain AIIMS-level standards in services and academic excellence, he said.
At a time when the state is witnessing an increase in communicable diseases, the CM said mechanisms will be created to strengthen coordination between the health department and the medical education department for the effective prevention and management of such ailments.
The Budget announced other initiatives: constituting a school health brigade to train students and the younger generation in healthy and hygienic lifestyles, and ensuring the availability of emergency and trauma care within the shortest possible time by implementing the 'Golden Hour Project'.
It also proposed improving the efficiency of medicine procurement by the Kerala Medical Services Corporation Limited (KMSCL).
Besides that, arrears under the Karunya Arogya Suraksha Scheme will be cleared in a phased manner to ensure its effective functioning, the CM said.
Tribal health clusters will be set up to improve healthcare services in tribal areas, while special coastal care units will be established to ensure medical care for people living in coastal areas.
Availability of medicines for rare diseases, including Spinal Muscular Atrophy (SMA), will also be ensured, he said.
Satheesan said hospital management committees and hospital development societies will be reformed to improve their efficiency and ensure that funds collected are properly utilised for the benefit of patients.
Steps will be taken to prevent excessive political interference in the administration of government hospitals.
Special schemes will be formulated for cancer patients, whose numbers are on the rise in the state, he added.
Additionally, mobile testing laboratories will be set up in rural areas lacking diagnostic facilities. Ten such labs will be established initially at a cost of Rs 2 crore each, with Rs 20 crore allocated for the purpose in the Budget, he said.
The CM said children with Type 1 diabetes will receive quality insulin, while eligible patients will be provided insulin pumps and continuous glucose monitoring sensors.
