Kerala has long been celebrated for its pioneering achievements in education, boasting one of India's highest literacy rates and a robust public schooling system. Building on its tradition of providing free education up to the higher secondary level (Class 12, or Plus Two), the state has now taken a groundbreaking step forward.
In the Kerala State Budget for 2026–27, presented on January 29, 2026, Finance Minister K.N. Balagopal announced that undergraduate education in Arts and Science courses will be made completely free in all government and government-aided colleges. This policy extends the existing free education framework—previously limited to Class 12—directly into higher education for the first time, positioning Kerala as the first state in India to offer tuition-free graduate-level studies in these disciplines.
The landmark decision aims to eliminate financial barriers that often prevent talented students from pursuing higher education, particularly from economically disadvantaged families. By waiving tuition fees for Bachelor of Arts (BA) and Bachelor of Science (BSc) programs, the government expects to benefit an estimated several lakh students enrolled in these streams. Finance Minister Balagopal clarified during a post-budget press conference that the measure applies specifically to government and aided institutions, where the majority of undergraduate enrollments occur. The exact revenue forgone due to this waiver is still being assessed, but officials have described it as a strategic investment in human capital and social equity.
Kerala's existing free education policy up to Class 12 has been a cornerstone of its social development model for decades, supported by strong public investment in schools, teacher training, and infrastructure. This has contributed to near-universal enrollment at the school level and consistently high performance in national education indicators. The new extension to undergraduate levels reinforces the state's commitment to inclusive education and aligns with broader goals of reducing student migration for affordable higher studies, curbing brain drain, and strengthening local talent pools.
The announcement forms part of a larger education-focused package in the budget. Complementary measures include:
- Introduction of accident insurance coverage for students from Classes 1 to 12, with an annual allocation of ₹15 crore to provide financial protection in case of mishaps.
- Enhanced scholarships, fellowships for PhD scholars, and increased funding for universities (total higher education allocation: ₹259.09 crore).
- Proposals for a new 'Global School' initiative emphasizing modern technologies, vocational training, skill development, and future-oriented fields like techno-economics, with ₹10 crore earmarked initially.
- Launch of a public hostel scheme for government college students in the first phase across Ernakulam, Thrissur, and Kozhikode districts (₹10 crore allocated for preliminary work).
Education experts and student organizations have hailed the move as a "watershed moment" and a model for other states, praising it for promoting equal access and empowering youth in an era of rising education costs. Critics, however, have raised questions about long-term fiscal sustainability and potential impacts on private institutions, though the government has emphasized that the policy targets public and aided sectors to preserve quality and accessibility.
With assembly elections approaching in the coming months, the budget's people-centric schemes—including this historic education expansion—signal the Left Democratic Front (LDF) government's focus on welfare and human development. As implementation details roll out, the policy is poised to further solidify Kerala's reputation as a leader in progressive education reforms in India.
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