Kerala Budget 2026: ₹1,182 crore allocated for roads, bridges and highway development

The Kerala Budget 2026 has allocated ₹1,182.43 crore for the Public Works department, of which ₹1,091.15 crore is earmarked for roads and bridges, and ₹91.28 crore for national highways.

In his Budget speech on Thursday, Finance Minister K.N. Balagopal stated that 898 km of State highways have been upgraded to four lanes and 3,193 km to two lanes. Besides, 52 km of district roads have been developed into four lanes and 10,953 km into two lanes.

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The government also proposes to conduct a feasibility study for a tunnel road from Kattappana to Theni to ease transportation along the hill highway, for which ₹10 crore has been allocated. The proposed tunnel road is expected to reduce the distance by at least 20 km.

An allocation of ₹300.50 crore has been set aside for designing and overlaying roads as part of upgrading main district roads (MDR) to higher standards. Under the second phase of the Kerala State Transport Project (KSTP), ₹100 crore has been allocated for the development of several roads.

An amount of ₹165 crore has been allocated for construction and maintenance of roads using NABARD funds, while ₹62 crore has been earmarked under the Central Road Fund for the modernisation of State highways as per the Central Road Fund Act, 2000. To complete ongoing bridge construction works using NABARD loans and to undertake new projects, ₹95 crore has been set apart. A further ₹87 crore has been allocated for designing and overlaying works on State highways.

An allocation of ₹58.80 crore has been made for annuity payments for road construction in other cities, in line with the PPP model project (annuity model) under the Capital City Road Development Project. The allocation for railway overbridges and underpasses to ensure rail safety has been increased from ₹16 crore to ₹25 crore. Additionally, ₹5 crore has been earmarked for the construction of an underpass at the Dharmadom railway station in Kannur district. Restoration and reconstruction of ageing bridges will be undertaken with a budget of ₹46.46 crore.

For the completion of ongoing works on State highways, including protective measures and installation of traffic safety boards, ₹41 crore has been allocated. Bridges connecting tribal ‘Unnathis’ will be reconstructed and restored at a cost of ₹25 crore. The allocation for road safety has been enhanced from ₹15 crore to ₹23.37 crore to reduce accidents.

Pilgrim roads

Furthermore, ₹15 crore has been allocated for developing pilgrim roads in Pathanamthitta and Kottayam districts, and ₹21.50 crore has been earmarked for upgrading the Kerala Highway Research Institute (KHRI) into a Centre of Excellence.