Kerala Gets Healthcare Boost: Allocates INR 2,076 Cr for Healthcare, Insurance & Preventive Care
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The budget also outlines plans to develop the mega INR 100 crore Health and Life Science City project.
The government of Kerala has announced a healthcare allocation of INR 2,76 Crore in its Budget 2026, outlining a series of initiatives to improve healthcare access, strengthen insurance coverage, and enhance medical infrastructure.
Presenting the revised Budget 2026-27 in the state assembly, Chief Minister V D Satheesan emphasised investments in public healthcare, super-speciality services, and measures intended to reduce out-of-pocket healthcare expenditure for citizens.
Among the key announcements, the government has proposed to operationalise the second Medical College in Thiruvananthapuram, while a new medical college will be established at Haripad.
Reportedly, a fund of INR 100 crore has been sanctioned to overhaul infrastructure, hire staff, and bring in modern equipment at the Kasaragod, Idukki, Wayanad, and Manjeri Medical Colleges.
In addition, the state government has earmarked INR 20 crore to deploy mobile testing lab facilities aimed at improving diagnostic access and laboratory facilities in rural areas.
In the first phase, 10 laboratories will be established at INR 2 crore each.
The budget also outlines plans to develop the mega INR 100 crore, Health and Life Science City project, envisioned as an integrated healthcare ecosystem bringing together multi-speciality hospitals, medical colleges, research laboratories, diagnostic centres, rehabilitation facilities, and training institutions.
The project aims to support healthcare delivery, medical education, research activities, and medical tourism while creating employment opportunities in the sector.
In addition, the CM also unveiled the Oommen Chandy Health Insurance Scheme, a universal health insurance programme intended to provide free medical coverage of up to INR 25 lakh per family across the state.
To initiate the programme, the government has allocated INR 10 crore towards preliminary implementation expenses. The scheme is expected to improve access to healthcare services while reducing the financial burden of medical treatment on households.
Further, the budget also introduced the ‘Golden Hour Project’, intended to strengthen emergency and trauma care services through improved coordination among healthcare institutions and the adoption of digital systems to facilitate timely patient care.
Furthermore, the CM also announced the ‘Reach Kerala’ Tourism initiative, designed to integrate health, AYUSH, and tourism to provide world-class healthcare packages, positioning Kerala as a premier global hub for medical wellness and healing.
The Budget further proposed a comprehensive restructuring of the Medisep health insurance scheme for government employees.
According to Satheesan, the existing programme will undergo a major overhaul to improve its effectiveness and address concerns raised by beneficiaries.
Detailed guidelines for the revamped scheme are expected to be announced later.
Stay tuned for more such updates on Digital Health News
