Kerala Budget 2026: UDF Government allocates ₹50 crore for Gen-Z innovation

Kerala Chief Minister and Finance Minister V.D. Satheesan on Friday unveiled the UDF government's first revised Budget, announcing a ₹50 crore initiative aimed at empowering Generation-Z and positioning young innovators at the centre of the state's future economic growth.

Presenting the Budget in the Assembly, Satheesan described Gen-Z as a transformative force in the digital era, highlighting the generation's rapid adoption of emerging technologies such as Artificial Intelligence (AI), Robotics, Data Science, Internet of Things (IoT) and Virtual Reality (VR).

The Chief Minister said the initiative would help channel the creativity and technological capabilities of young people into Kerala's startup ecosystem, research centres, innovation hubs and smart industries, while promoting digital ethics, cybersecurity, privacy protection and human values. A total allocation of ₹50 crore has been earmarked for the programme.

In another major technology-focused announcement, the Budget allocated ₹10 crore for a Malayalam AI Initiative. The project aims to create an open Malayalam-language dataset and support the development of Malayalam AI models that can be used by innovators, researchers and startups to build market-ready solutions.

The Budget also proposed dedicated facilities for screening short films and documentaries created by Gen-Z artists, along with spaces for contemporary dance and music performances at the proposed M.T. Vasudevan Nair Cultural Park in Kozhikode.

Alongside youth-centric initiatives, the UDF government's maiden Budget focuses on economic growth, infrastructure development, welfare programmes and technology-driven innovation as part of its broader vision for Kerala's future.